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Three Hawke's Bay men escaped an attack by a man with a samurai sword, and the firebomb he threw into a room where they were watching television.
Constable Todd Lee said the trio was in a room above the main office at the old hospital in Waipukurau, when a man appeared in the doorway clutching a bat and golf club on Saturday.
The man, in his 20s, who was known to the men, started "ranting and raving" then fled, but returned holding a samurai sword and a firebomb.
Mr Lee said the man lit the rag in a bottle of fuel and tossed it on to the carpet in front of the men.
The carpet and a curtain caught fire before one of the men grabbed the burning bottle and threw it out the window, along with a scorching curtain.
They then grabbed a jug of water, pouring it over the carpet.
Mr Lee said the quick actions of the men prevented the building from going up in flames.
The offender raced downstairs and into an outdoor shed, where he found fuel and lit a second fire, before driving off in a blue Nissan.
Mr Lee said police were following strong leads, and when located, the man would face two charges of arson.
"We know who he is and will be speaking to him."
One man had minor burns to his leg when he attempted to put out the fire and was treated at the scene by paramedics.
Two appliances from the Waipukurau fire brigade attended the blaze.
- NZPA