Lifetime Brands Completes New Credit Facilities

GARDEN CITY, N.Y., Jun 10, 2010 (BUSINESS WIRE) --Lifetime Brands, Inc. (NASDAQ: LCUT), North America's leading resource for nationally branded kitchenware, tabletop and home décor products, today announced the completion of new credit facilities in an initial aggregate amount of $165.0 million.

The new credit facilities consist of a $125.0 million Revolving Asset-Based Facility and a $40.0 million Second Lien Term Facility.

The Revolving Asset-Based Facility, which, under certain circumstances, may be expanded to $150.0 million, has a five-year term. Loans under the facility bear interest at LIBOR plus a margin of 225 to 275 basis points, based upon availability. J. P. Morgan Securities, Inc. was the sole lead arranger of the Revolving Asset-Based Facility.

The Second Lien Term Facility also has a five-year term. The interest rate is equal to LIBOR (with a floor of 1.5%) plus a margin of 850 basis points. Citigroup Global Markets Inc. arranged the Second Lien Term Facility.

At March 31, 2010, the Company had outstanding $20.1 million of borrowings and $1.2 million of open letters of credit under its $130 million credit facility that was to mature in January 2011.

The Company also currently has outstanding $74.0 million principal amount of 4.75% Convertible Senior Notes due July 15, 2011. The Company intends to use a portion of the Second Lien Term Facility proceeds and borrowings under the Revolving Asset-Based Facility to purchase all or a portion of the Convertible Senior Notes or to repay any outstanding notes at maturity.

Jeffrey Siegel, Lifetime's Chairman, President and Chief Executive Officer, said, "We are pleased to have completed these financings on terms that reflect Lifetime's solid balance sheet and strong cash flow, and to have partnered with a group of strong lenders to help facilitate our continued growth."

The Company will recognize a one-time, non-cash pre-tax charge of approximately $0.8 million, or $0.04 per diluted share, in the second quarter of 2010, representing the write-off of deferred financing costs related to the existing credit facility.

Carl Marks Advisory Group, LLC acted as the Company's financial advisor in connection with the Second Lien Term Facility.

Forward-Looking Statements

In this press release, the use of the words "believe," "could," "expect," "may," "positioned," "project," "projected," "should," "will," "would" or similar expressions is intended to identify forward-looking statements that represent the Company's current judgment about possible future events. The Company believes these judgments are reasonable, but these statements are not guarantees of any events or financial results, and actual results may differ materially due to a variety of important factors. Such factors might include, among others, the Company's ability to comply with the requirements of its credit agreement; the availability of funding under that credit agreement; the Company's ability to maintain adequate liquidity and financing sources and an appropriate level of debt; changes in general economic conditions which could affect customer payment practices or consumer spending; the impact of changes in general economic conditions on the Company's customers; changes in demand for the Company's products; shortages of and price volatility for certain commodities; significant changes in the competitive environment and the effect of competition on the Company's markets, including on the Company's pricing policies, financing sources and an appropriate level of debt.

Lifetime Brands, Inc.

Lifetime Brands is North America's leading resource for nationally branded kitchenware, tabletopand home décor products. The Company markets its products under many of the industry's best known brands, including Farberware(R), KitchenAid(R), Pfaltzgraff(R), Mikasa(R), Cuisinart(R), Calvin Klein(R), CasaModa(R), Design for Living(R), Gorham(R), Hoffritz(R), International(R) Silver, Kirk Stieff(R), Nautica(R), Pedrini(R), Roshco(R), Sabatier(R), Sasaki(R), Towle(R) Silversmiths, Tuttle(R), Wallace(R) and Vasconia(R). Lifetime's products are distributed through most major retailers in North America.

SOURCE: Lifetime Brands, Inc.

Lifetime Brands, Inc.
Laurence Winoker, 516-203-3590
Chief Financial Officer
investor.relations@lifetimebrands.com
or
Lippert/Heilshorn & Assoc.
Harriet Fried, 212-838-3777
Senior Vice President
hfried@lhai.com