RUS Russ Berrie CO

WAYNE, N.J., May 28 /PRNewswire-FirstCall/ -- Russ Berrie and Company, Inc. (NYSE:RUS) announced today that it has begun to explore a full spectrum of strategic alternatives to enhance shareholder value, a process it began as a result of several inquiries regarding potential transactions the Company received following the divestiture of its gift segment in December. While the Company's principal focus will continue to be the execution of various growth strategies for its infant and juvenile business, it will also evaluate a possible merger, acquisition, strategic partnership or sale of the Company. Bruce Crain, President and Chief Executive Officer of the Company, commented, "The sale of our gift segment transformed our business and focused our efforts on the attractive infant and juvenile industry. Our objective now is to establish an even greater presence in the industry by building upon our market leadership. Based on the inquiries we have received, we have decided to examine a full range of alternatives that may enhance our long-term potential." Mr. Crain continued, "In addition to considering our external strategic alternatives, we remain committed to our internal growth strategies to create shareholder value. Accordingly, we are focused on the following: first, to win market share by creating design-differentiated, branded products; second, to expand our product offerings into complementary categories; third, to grow and diversify our distribution channels; fourth, to drive sales and marketing collaboration across our businesses; and fifth, to capture operational synergies that yield cost savings throughout our organization." The Company has not set a definitive timetable for completion of its evaluation and there can be no assurance that the evaluation process will result in the successful completion of any transaction. The Company does not intend to disclose developments regarding its exploration of strategic alternatives unless and until its Board of Directors deems it appropriate to do so. Sagent Advisors will serve as the Company's financial advisor in connection with this process. About Russ Berrie and Company, Inc. Russ Berrie and Company, Inc. and its subsidiaries are leaders in the design, development and distribution of branded infant and juvenile products. Its design-led products are sold primarily through mass market, specialty, food, drug and independent retailers worldwide. The Company's business is comprised of four wholly-owned subsidiaries: Kids Line, LLC; LaJobi, Inc.; Sassy, Inc.; and CoCaLo, Inc. Through these subsidiaries, the Company designs and markets branded infant and juvenile products in a number of complementary categories including, among others: infant bedding and related nursery accessories and decor (Kids Line(R) and CoCaLo(R)); nursery furniture and related products (LaJobi(R)); and developmental toys and feeding, bath and baby care items with features that address the various stages of an infant's early years (Sassy(R)). In addition to the Company's branded products, the Company also markets certain categories of products pursuant to various licenses, including Carter's(R), Disney(R), Graco(R) and Serta(R). Additional information about the Company is available at http://www.russberrieij.com/. Note: This press release contains certain forward-looking statements. Additional written and oral forward-looking statements may be made by the Company from time to time in Securities and Exchange Commission (SEC) filings and otherwise. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. These statements may be identified by the use of forward-looking words or phrases including, but not limited to, "anticipate", "believe", "expect", "project", "intend", "may", "might", "planned", "potential", "should", "will" or "would". The Company cautions readers that results predicted by forward-looking statements, including, without limitation, those relating to the Company's future business prospects, revenues, working capital, liquidity, capital needs, order backlog, interest costs and income are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Specific risks and uncertainties include, but are not limited to those set forth under Item 1A, "Risk Factors", of the Company's most recent Annual Report on Form 10-K filed with the SEC. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. AT THE COMPANY AT FINANCIAL DYNAMICS -------------- --------------------- Marc S. Goldfarb Leigh Parrish / Stephanie Rich Senior Vice President & General Counsel General Information 201-405-2400 212-850-5600 DATASOURCE: Russ Berrie and Company, Inc. CONTACT: Marc S. Goldfarb, Senior Vice President & General Counsel of Russ Berrie and Company, Inc., +1-201-405-2400; General Information: Leigh Parrish or Stephanie Rich, both of Financial Dynamics, +1-212-850-5600, for Russ Berrie and Company, Inc. Web Site: http://www.russberrieij.com/

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