Lifetime Hoan Announces First Quarter 2001 Results; Up to 600 New Products to be Introduced in 2001

WESTBURY, N.Y.--(BUSINESS WIRE)--April 26, 2001--LIFETIME HOAN CORPORATION (NASDAQ NM: LCUT), a leading marketer of housewares, today announced results for the first quarter ended March 31, 2001.

Net sales for the quarter were $31.3 million versus $27.6 million in the first quarter of 2000. The Company reported net income for the first quarter of $639,000, or $0.06 per diluted share, compared to net income of $1.4 million, or $0.12 per diluted share, for the same period in 2000.

Mr. Jeffrey Siegel, president and chief executive officer, commented, "Lifetime Hoan's performance in the first quarter was on target with our expectations. Our sales for the first three months exceeded last year's by 13% primarily due to our September 2000 acquisition of M. Kamenstein, Inc. One of our goals in acquiring Kamenstein was to use Lifetime Hoan's strong sourcing capabilities to improve its margins significantly. Thus, although our margins were down slightly because of the acquisition, we expect to see improvement as the year progresses."

Mr. Siegel continued, "Lifetime Hoan's ability to provide the marketplace with a consistent flow of new and innovative products is key to staying ahead in the housewares business. Through our new KitchenAid(R) line of kitchen utensils and the George Foreman(R) line of barbecue accessories, we will introduce approximately 600 new products in 2001 in the U.S. and abroad - significantly more than Lifetime Hoan has ever introduced in a single year."

Lifetime Hoan Corporation is a leading designer, marketer and distributor of household cutlery, kitchenware, cutting boards, pantryware and bakeware, marketing its products under various trade names including Farberware(R) and Hoffritz(R). Through the use of various brand names, Lifetime Hoan's products are distributed through almost every major retailer in the U.S.

The information herein contains certain forward-looking statements including statements concerning the Company's future prospects. These statements involve risks and uncertainties, including risks relating to general economic conditions and risks relating to the Company's operations, such as the risk of loss of major customers and risks relating to changes in demand for the Company's products, as detailed from time to time in the Company's filings with the Securities and Exchange Commission.

                       LIFETIME HOAN CORPORATION
                           INCOME STATEMENT
                 (in thousands, except per share data)

                                  Three Months Ended
                                       March 31,

                                     (Unaudited)           % Increase
                                   2001         2000        (Decrease)

Net  Sales                       $31,307       $27,609          13.4%
Cost of Sales                     17,367        14,517          19.6%

Gross Profit                      13,940        13,092           6.5%

SG&A                              12,692        10,763          17.9%
Other Expense/(Income)               118           (57)        310.7%

Income Before Taxes                1,130         2,386         (52.6%)

Tax Provision                        491         1,013         (51.5%)

Net Income                          $639        $1,373         (53.4%)

Basic Earnings Per Share           $0.06        $ 0.12         (50.0%)

Weighted Average Shares           10,497        11,802

Diluted Earnings Per Share         $0.06        $ 0.12         (50.0%)

Weighted Average Shares           10,561        11,850


                       LIFETIME HOAN CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)

                                              March 31,   December 31,
                                                2001          2000

ASSETS
CURRENT ASSETS
 Cash and cash equivalents                  $   2,649     $   1,325
 Accounts receivable, net                      16,419        18,158
 Merchandise inventories                       49,391        45,595
 Prepaid expenses and other current assets      6,371         7,014

  TOTAL CURRENT ASSETS                         74,830        72,092

PROPERTY AND EQUIPMENT, net                    16,665        13,085
INTANGIBLES, net                               25,607        25,686
OTHER ASSETS                                    1,514         1,256

 TOTAL ASSETS                               $ 118,616     $ 112,119

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
 Short-term borrowings                      $  14,258     $  10,746
 Accounts payable and trade acceptances        13,086         6,709
 Other current liabilities                     13,423        16,619

  TOTAL CURRENT LIABILITIES                    40,767        34,074

MINORITY INTEREST                                 460           528

STOCKHOLDERS' EQUITY                           77,389        77,517

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 118,616     $ 112,119

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