Lifetime Hoan Reports Significantly Improved Third Quarter Results

WESTBURY, N.Y.--(BUSINESS WIRE)--Oct. 26, 2000--LIFETIME HOAN CORPORATION (NASDAQ NM: LCUT): a leading marketer of housewares, today announced results for the third quarter ended September 30, 2000.

Net sales increased by 46% to $33.5 million for the period as compared to $22.9 million in the third quarter of 1999. Net income for the third quarter of 2000 increased by 480% to $2.3 million as compared to net income of $393,000 for the comparable period in 1999. Diluted earnings per share for the 2000 quarter increased 600% to $0.21 as compared to $0.03 in the prior year period.

Jeffrey Siegel, President of Lifetime Hoan, commented, "We are pleased with the results of the third quarter, as we expanded our business with existing customers and broadened our customer base by introducing industry-leading products. We are also very pleased with the improvement in our pretax margins versus the third quarter of last year resulting from our focus on improving our warehouse operations."

Mr. Siegel continued, "Since the close of the quarter we have signed a licensing agreement and made an acquisition consistent with our strategy of driving growth by expanding our presence and product offerings in the high-end housewares market. Our licensing agreement with KitchenAid, which was signed in October, will serve to strengthen the depth and scope of our high end product offerings while adding the highly-respected KitchenAid brand name to our portfolio of brands. Shipments of products bearing the KitchenAid brand will begin the second quarter of 2001 and our plan is to introduce in excess of 100 KitchenAid SKU's throughout the year.

"Our acquisition of M. Kamenstein, Inc., which was effective September 1, 2000, has added new product categories for Lifetime Hoan. Among the popular items that will be offered through this acquisition are pantryware, teakettles and home organization accessories."

Mr. Siegel concluded, "We are moving forward in achieving greater operating efficiencies in our warehouse which are currently in line with our benchmark 1998 performance. By realizing optimal efficiency, Lifetime Hoan will be positioned well to assimilate future acquisitions and manage product distribution in a way that will maximize our financial results going forward."

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.0625 per share, payable on November 20, 2000 to shareholders of record on November 6, 2000.

Lifetime Hoan has scheduled a conference call on Thursday, October 26 at 11:00 a.m. Eastern Time to discuss its third quarter 2000 results. Investors and interested parties may listen to the call via a live Webcast accessible through Lifetime Hoan's website, www.lifetime.hoan.com. To listen, please register and download audio software at the site at least 15 minutes prior to the call. The Webcast will be available on the site for approximately three months, while a telephone replay of the call is available for two days beginning at 1:00 p.m. Eastern Time, October 26, at 1-800-633-8284, reservation #16660448.

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., including Bed Bath & Beyond, Wal-Mart, Kmart, Target, Macy's and Dayton Hudson.

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
                           2000           1999              (Decrease)

Net  Sales               $33,505         $22,950                46.0%
Cost of Sales             17,585          12,254                43.5%
Gross Profit              15,920          10,696                48.8%
SG&A                      11,896           9,893                20.2%
Other Expense/(Income)        39             140               (72.1%)
Income Before Taxes        3,985             663                501.3%
Tax Provision              1,706             270                531.9%
Net Income                $2,279            $393                480.3%
Basic Earnings Per Share  $ 0.22          $ 0.03                633.3%
Weighted Average Shares   10,567          12,600
Diluted Earnings Per
 Share                    $ 0.21          $ 0.03                600.0%
Weighted Average Shares   10,646          12,767

                             Nine Months Ended      
                                September 30,       
                                (Unaudited)           
                           2000           1999              % Increase
                                                            (Decrease)

Net  Sales               $86,661          $67,670                28.1%
Cost of Sales             45,354           34,943                29.8%
Gross Profit              41,307           32,727                26.2%
SG&A                      32,896           27,383                20.1%
Other Expense/(Income)         7             (180)            (103.9%)
Income Before Taxes        8,404            5,524                52.1%
Tax Provision              3,589            2,210                62.4%
Net Income                $4,815           $3,314                45.3%
Basic Earnings Per Share  $ 0.43           $ 0.26                65.4%
Weighted Average Shares   11,159           12,597
Diluted Earnings
 Per Share                $ 0.43           $ 0.26                65.4%
Weighted Average Shares   11,243           12,794

                       LIFETIME HOAN CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)

                                    September 30,        December 31,
                                      2000                 1999
ASSETS
CURRENT ASSETS
Cash and cash equivalents            $   356                $   1,563
Accounts receivable, net              22,501                   22,443
Merchandise inventories               55,939                   54,046
Prepaid expenses and other current
 assets                                5,577                    4,252
TOTAL CURRENT ASSETS                  84,373                   82,304

PROPERTY AND EQUIPMENT, net           13,421                   12,597
INTANGIBLES, net                      25,812                   20,310
OTHER ASSETS                           1,228                    1,173
TOTAL ASSETS                       $ 124,834                $ 116,384

LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES

Short-term borrowings              $  18,638                $   8,073
Accounts payable and trade
 acceptances                           9,120                    5,553
Other current liabilities             16,659                   14,062
TOTAL CURRENT LIABILITIES             44,417                   27,688
MINORITY INTEREST                        702                      888
STOCKHOLDERS' EQUITY                  79,715                   87,808
TOTAL LIABILITIES AND 
 STOCKHOLDERS' EQUITY              $ 124,834                $ 116,384

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