Lifetime Hoan Announces Third Quarter 2001 Results

WESTBURY, N.Y.--(BUSINESS WIRE)--Nov. 5, 2001--Lifetime Hoan Corporation (Nasdaq NM: LCUT), a leading marketer of housewares, today announced results for the third quarter ended September 30, 2001.

Net sales for the quarter increased by 9% to $36.6 million from $33.5 million in the third quarter of 2000. The Company reported net income for the third quarter of $1,026,000, or $0.10 per diluted share, compared to net income of $2,279,000, or $0.21 per diluted share, for the same period in 2000. Excluding relocation costs and excess rent expense associated with the move into the new warehouse, earnings for the third quarter were $1,473,000, or $0.14 per diluted share, a 33% decrease from the same period in 2000.

Jeffrey Siegel, president and chief executive officer, commented, "Although the economic climate, and especially the retail environment, have proven to be challenging, particularly since September 11th, we have been able to leverage the strengths of our brand names and superior offerings to maintain our top line sales volume. Orders for our new KitchenAid(R) line of products have been strong, although delays in receiving these items from our overseas suppliers have prevented us from fully capitalizing on the potential of this brand. Several major customers have expressed strong satisfaction with the initial retail sales of this line."

Mr. Siegel continued, "We are continuing to aggressively and successfully pursue many business opportunities designed to help Lifetime Hoan grow both sales and earnings. We recently expanded our supermarket business by winning a major new account to which we will begin shipping in December and by significantly increasing our placement with an existing account. We are continuing our proven strategy of utilizing well-known brands that we own or license to increase sales of our various product lines. We have also begun to phase in our new warehouse, which will help us control our inventory better and operate much more efficiently. Although this is a complex process that will extend into 2002, we expect to achieve considerable cost savings when it has been completed."

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
                                    September 30,
                                     (Unaudited)           % Increase
                              -------------------------
                                  2001          2000        (Decrease)
                              -----------   -----------    -----------
Net Sales                       $ 36,600      $ 33,505           9.2%
Cost of Sales                     20,407        17,585          16.0%
                              -----------   -----------    -----------
Gross Profit                      16,193        15,920           1.7%

SG&A                              14,167        11,896          19.1%

Other Expense                        154            39
                              -----------   -----------    -----------

Income Before Taxes                1,872         3,985         (53.0%)

Tax Provision                        846         1,706         (50.4%)
                              -----------   -----------    -----------

Net Income                        $1,026        $2,279         (55.0%)
                              ===========   ===========    ===========

Basic Earnings Per Share          $ 0.10        $ 0.22         (54.5%)
                              ===========   ===========    ===========
Weighted Average Shares           10,491        10,567

Diluted Earnings Per Share        $ 0.10        $ 0.21         (52.4%)
                              ===========   ===========    ===========
Weighted Average Shares           10,549        10,646


                                  Nine Months Ended
                                    September 30,
                                     (Unaudited)           % Increase
                              -------------------------
                                  2001          2000        (Decrease)
                              -----------   -----------    -----------
Net Sales                       $ 95,478      $ 86,661          10.2%
Cost of Sales                     52,987        45,354          16.8%
                              -----------   -----------    -----------
Gross Profit                      42,491        41,307           2.9%

SG&A                              38,590        32,896          17.3%

Other Expense                        467             7
                              -----------   -----------    -----------

Income Before Taxes                3,434         8,404         (59.1%)

Tax Provision                      1,564         3,589         (56.4%)
                              -----------   -----------    -----------

Net Income                        $1,870        $4,815         (61.2%)
                              ===========   ===========    ===========

Basic Earnings Per Share          $ 0.18        $ 0.43         (58.1%)
                              ===========   ===========    ===========
Weighted Average Shares           10,492        11,159

Diluted Earnings Per Share        $ 0.18        $ 0.43         (58.1%)
                              ===========   ===========    ===========
Weighted Average Shares           10,548        11,243



                       LIFETIME HOAN CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)


                                         September 30,   December 31,
                                                 2001           2000
                                         -------------  -------------

ASSETS
CURRENT ASSETS
  Cash and cash equivalents                     $   67      $   1,325
  Accounts receivable, net                      24,021         18,158
  Merchandise inventories                       55,265         45,595
  Prepaid expenses and
   other current assets                          5,384          7,014
                                         -------------  -------------
     TOTAL CURRENT ASSETS                       84,737         72,092

PROPERTY AND EQUIPMENT, net                     21,961         13,085
INTANGIBLES, net                                25,128         25,686
OTHER ASSETS                                     2,296          1,256
                                         -------------  -------------
     TOTAL ASSETS                            $ 134,122      $ 112,119
                                         =============  =============


LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Short-term borrowings                      $  29,725      $  10,746
  Accounts payable and trade acceptances        10,438          6,709
  Other current liabilities                     16,006         16,619
                                         -------------  -------------
     TOTAL CURRENT LIABILITIES                  56,169         34,074

MINORITY INTEREST                                  140            528

STOCKHOLDERS' EQUITY                            77,813         77,517
                                         -------------  -------------
     TOTAL LIABILITIES AND
      STOCKHOLDERS' EQUITY                   $ 134,122      $ 112,119
                                         =============  =============

--30--kb/ny*