A hand drying appliance has a cabinet containing an air heating unit and a dispensing unit for individual paper towels. The cabinet has an air outlet communicating with the air heating unit so that heated air can pass to the outside of the cabinet. A magazine or holder is arranged inside the cabinet to contain a substantially vertical stack of C-folded paper towels. The cabinet also has a towel outlet through which the lowermost towel in the stack can be dispensed laterally of the stack. A dispensing member is arranged inside the cabinet beneath the magazine or holder. It engages the lowermost towel in the stack and moves it laterally through the towel outlet slot.
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