Ceramic Industry

Susquehanna Pfaltzfraff To Sell The Pfaltzgraff Co.

July 7, 2005

Susquehanna Pfaltzgraff Co. has signed a definitive agreement to sell certain assets of The Pfaltzgraff Co. to Lifetime Brands Inc. The transaction is expected to close in July, subject to customary closing conditions. "The sale to Lifetime Brands is a positive outcome for The Pfaltzgraff Co. and the entire York community," said Louis J. Appell, Jr., chairman of the privately owned Susquehanna Pfaltzgraff Co. "Lifetime Brands is a well-respected and growing company with a strong portfolio of premium brands, and a culture and business philosophy very similar to our own. I am very pleased that Lifetime Brands has committed to preserving and growing the Pfaltzgraff brand, and to retaining a major presence in the community where this company has such deep roots." According to Jeffrey Siegel, chairman, president and chief executive officer of Lifetime Brands, Pfaltzgraff, which will remain based in York, will become a subsidiary of Lifetime Brands, and Marsha Everton will continue as president under the new ownership. In addition, he said Lifetime Brands intends to consolidate and expand certain activities related to retailing, licensing, catalog sales and Internet sales of its other brands under Everton's direction in York, creating growth opportunities.

The acquisition includes all of Pfaltzgraff's brands and intellectual property, the company's retail stores, and certain other assets. Lifetime Brands will lease and operate Pfaltzgraff's two distribution centers near York. Pfaltzgraff's design, retail store management, Internet and catalog sales, and call center operations will also continue in York. The sale does not include Pfaltzgraff's nearby Thomasville manufacturing facility, which remains for sale. Lifetime Brands has committed to a significant contract with the facility under which it will purchase product manufactured at Thomasville while Susquehanna Pfaltzgraff seeks a buyer for the facility.

For additional details, visit http://www.pfaltzgraff.com, http://www.suspfz.com or http://www.lifetimebrands.com.