Lifetime Hoan Announces Fourth Quarter and Year-End 2000 Results

WESTBURY, N.Y.--(BUSINESS WIRE)--April 3, 2001--Lifetime Hoan Corporation (NASDAQ NM: LCUT), a leading marketer of housewares, today announced results for the fourth quarter and full year ended December 31, 2000. For 2000, net sales totaled $129.4 million versus $106.8 million in 1999. Net income for 2000 was $3.4 million, or $0.31 per diluted share, compared to $4.0 million, or $0.31 per diluted share, in 1999.

For the fourth quarter of 2000, net sales were $42.7 million versus $39.1 million in the fourth quarter of 1999. The Company reported a net loss for the fourth quarter of $1.4 million, or $0.13 per diluted share, as compared to net income of $647,000, or $0.05 per diluted share, for the same period in 1999.

Lifetime Hoan's fourth quarter results were negatively impacted by a charge to cost of sales of approximately $4.0 million resulting from an inventory shortfall revealed by the Company's year-end 2000 physical inventory. Although the Company has been investigating the shortfall, its ultimate cause has not yet been determined. Accordingly, the associated charge was recorded in the fourth quarter of 2000. In addition, the Company's gross profit margin decreased as a result of certain measures taken to clean up and reduce inventory in its current warehouses in preparation for its move to a new warehouse in 2001.

Jeffrey Siegel, president and chief executive officer, said, "Lifetime Hoan's sales were very strong in 2000, increasing by 21% for the year as a whole and by 9% for the fourth quarter. This increase was driven by expanded lines, new product placement, and strong shipments. Unfortunately, the improvement in the Company's performance was offset by a shortfall in inventory whose cause we have not been able to determine. We are thoroughly reviewing all our procedures and operating and financial control records and have begun to implement enhanced procedures and controls wherever appropriate. In addition, the automated systems and inventory tracking software we will use in our new warehouse will greatly increase our efficiency and ability to manage our inventory."

Mr. Siegel continued, "We expect 2001 to be a successful year for Lifetime Hoan. We are on track to begin shipping products bearing the highly respected KitchenAid(R) brand late in the second quarter and we plan to introduce in excess of 100 KitchenAid SKU's during the course of the year. In addition, through our acquisition of M. Kamenstein and our introduction of a new line of barbecue accessories, we expect to introduce another 500 products into the marketplace in the U.S. - significantly more than Lifetime Hoan has ever introduced in a single year. We expect a commensurate increase in sales to approximately $155 million to $160 million and significantly improved margins."

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 000's, except per share data)

                                        Three Months Ended
                                           December 31,
                                           (Unaudited)      % Increase
                                      --------------------------------
                                       2000         1999     (Decrease)
                                      -------      -------   ---------     
Net  Sales                            $42,713      $39,091      9.3%
Cost of Sales                          29,647       23,036     28.7%
                                      -------      -------   --------
Gross Profit                           13,066       16,055    (18.6%)

SG&A                                   15,006       14,866      0.9%
Other Expense/(Income)                    213          (70)  (404.3%)
                                      -------      -------   --------

Income/(Loss) Before Taxes             (2,153)       1,259   (271.0%)

Tax Provision                            (772)         612   (226.2%)
                                      -------      -------   --------

Net Income/(Loss)                     ($1,381)        $647   (313.5%)
                                      =======      =======   ========

Basic Earnings/(Loss) Per Share        ($0.13)      $ 0.05   (360.0%)
                                      =======      =======   ========
Weighted Average Shares                10,506       12,497

Diluted Earnings/(Loss) Per Share      ($0.13)      $ 0.05   (360.0%)
                                      =======      =======   ========
Weighted Average Shares                10,584       12,529


                                        Twelve Months Ended
                                           December 30,
                                           (Unaudited)      % Increase
                                     ---------------------------------
                                       2000         1999    (Decrease)
                                     --------     --------   --------
Net  Sales                           $129,375     $106,761     21.2%
Cost of Sales                          75,001       57,979     29.4%
                                     --------     --------   --------
Gross Profit                           54,374       48,782     11.5%

SG&A                                   47,903       42,250     13.4%
Other Expense/(Income)                    220         (251)  (187.6%)
                                     --------     --------   --------

Income Before Taxes                     6,251        6,783     (7.8%)

Tax Provision                           2,817        2,822     (0.2%)
                                     --------     --------   --------

Net Income                             $3,434       $3,961    (13.3%)
                                     ========     ========   ========

Basic Earnings Per Share               $ 0.31       $ 0.32    (0.03%)
                                     ========     ========   ========
Weighted Average Shares                10,995       12,572

Diluted Earnings Per Share            $ 0. 31       $ 0.31      0.0%
                                     ========     ========   ========
Weighted Average Shares                11,079       12,671




                       LIFETIME HOAN CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in 000's)

                                           December 31,    December 31,
                                              2000            1999
                                           -----------     -----------
ASSETS
CURRENT ASSETS
Cash and cash equivalents                  $   1,325          $  1,563

Accounts receivable, net                      18,158            22,443
Merchandise inventories                       45,595            54,046
Prepaid expenses and other current assets      7,014             4,252
                                           ---------         ---------
 TOTAL CURRENT ASSETS                         72,092            82,304

PROPERTY AND EQUIPMENT, net                   13,085            12,597
INTANGIBLES, net                              25,686            20,310
OTHER ASSETS                                   1,256             1,173
                                           ---------         ---------
 TOTAL ASSETS                              $ 112,119         $ 116,384
                                           =========         =========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings                      $  10,746          $  8,073
Accounts payable and trade acceptances         6,709             5,553
Other current liabilities                     16,619            14,062
                                           ---------         ---------
 TOTAL CURRENT LIABILITIES                    34,074            27,688

MINORITY INTEREST                                528               888

STOCKHOLDERS' EQUITY                          77,517            87,808
                                           ---------         ---------
 TOTAL LIABILITIES 
  AND STOCKHOLDERS' EQUITY                 $ 112,119         $ 116,384
                                           =========         =========

--30--mj/ny*