Warley Exhibition press release, Sunday December 2nd, 2007

Ixion Announces Distribution Arrangements

Following the official launch this weekend of the Ixion brand at the Warley National Model Railway Exhibition at the NEC, Birmingham, Ixion Model Railways Ltd is pleased to announce that we have appointed Dapol Model Railways (www.dapol.co.uk) as our sole distributors for the United Kingdom, Europe and North America.

Sales of Ixion products will be conducted solely through the Dapol website, Dapol mail-order service, and through the Dapol stand at exhibitions. Details of Dapol's on-line store's purchasing policy can be found at http://www.dapol.co.uk/payment.html.

Customers in Australia and New Zealand will only be able to order and purchase from Ixion directly; the Dapol website will not accept orders for Ixion products to be sent to Australian or NZ addresses, as their agreement with us does not cover Australasia. Customers in other parts of the world should, in the first instance, contact Ixion directly. Please see our Contact Us page for details of how to contact us by email, post or telephone in Australia.

This distribution model will be entirely familiar to Australian HO scale modellers, and has worked well in that country for a decade. Despite this, Ixion recognises that this decision will cause some disappointment amongst both customers, and retailers. However, as a start-up company with no full-time employees, and two-thirds of the owners resident in Australia, we believe this is the only financial and distribution model which will allow us sufficient return to enable us continue our program of regular releases. We would like to reaffirm that Ixion is a completely independent, Anglo-Australian company, despite speculation that we are a 'front' for a variety of other individuals or companies.

We invite prospective customers to please address any enquiries or comments on this press release to Ixion directly. Dapol Model Railways are acting as our sales agents only, and are not in a position to answer any questions about our current or future plans and products.

Best wishes,

Phil Badger, Chris Klein and Lindsay O'Reilly,

Directors, Ixion Model Railways Ltd.