• Headquarters, distribution center to remain in York
• Sale positions Pfaltzgraff for future growth
• Companies "complement each other well"
• Future of historic brand seen brightest as part of larger organization

YORK, Pa. — Susquehanna Pfaltzgraff Co. announced today that it has signed a definitive agreement to sell certain assets of The Pfaltzgraff Co., one of America’s leading marketers of casual dinnerware and accessories for the home, to Lifetime Brands Inc. (Nasdaq: LCUT), a leading designer, marketer and distributor of nationally branded consumer products for the home. 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."

William H. Simpson, president and chief executive officer of Susquehanna Pfaltzgraff, added, "Our companies complement one another well. With more extensive marketing reach and the strength of a powerful portfolio of related brands, Pfaltzgraff will be able to compete even more effectively as part of the Lifetime Brands organization."

Jeffrey Siegel, chairman, president and chief executive officer of Lifetime Brands, said, "Pfaltzgraff is one of the strongest brand names and most recognizable companies in housewares. As our largest acquisition to date, Pfaltzgraff brings an immediate and powerful presence in the tabletop segment of our business, and further differentiates our product offerings in the eyes of retail customers and consumers. Pfaltzgraff’s employees and management team also bring proven strength in design, marketing and retailing. We welcome them to the Lifetime Brands team."

Siegel said 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.

Everton said, "The sale is also a win-win for our very dedicated customers as well as the retail partners that have helped make the Pfaltzgraff brand name what it is today. Among other things, it ensures continuity of many of the patterns and styles beloved by our loyal customers. At the same time, we expect to accelerate innovation and new product introductions that will keep Pfaltzgraff growing and vital for the future."

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.

Pfaltzgraff employs a total of approximately 1,200 people, of whom approximately 600 work in the Greater York area.

Sawaya Segalas & Co., LLC, a leading consumer products investment banking firm, served as exclusive financial advisor to Susquehanna Pfaltzgraff on the transaction.

About Pfaltzgraff

As the oldest pottery maker in the United States, The Pfaltzgraff Co. grew from a one-man shop in the early 1800s to a large manufacturer that offers a full range of products and styles today. Its products are broadly distributed to more than two dozen retail chains and sold through approximately 60 company-owned factory stores in 31 states as well as through Internet and catalog operations. Venerable Pfaltzgraff patterns include the popular Heritage, Yorktowne, Tea Rose, Village, Folk Art, Heirloom, Naturewood, Winterberry, Christmas Heritage, Summer Breeze, Garden Party and Pistoulet collections, which together are owned by an estimated 10.5 million households.

In November 2004, a Bridal Guide magazine survey of more than 220,000 couples named Pfaltzgraff patterns as seven of the top 10 dinnerware patterns requested by brides. Pfaltzgraff’s new "sister" brand, PFZ, was launched in March with custom product offerings designed to appeal to young consumers.

About Lifetime Brands Inc.

Lifetime Brands is a leading designer, marketer and distributor of kitchenware, cutlery & cutting boards, bakeware & cookware, pantryware & spices, tabletop and bath accessories, marketing its products under various trade names, including Farberware®, KitchenAid®, Cuisinart®, Hoffritz®, Sabatier®, DBK™-Daniel Boulud Kitchen, Joseph Abboud Environments®, Roshco®, Baker’s Advantage®, Kamenstein®, CasaModa™, Hoan®, Gemco® and :USE®. Lifetime Brands’ products are distributed through almost every major retailer in the United States.

About Susquehanna Pfaltzgraff Co.

Susquehanna Pfaltzgraff is a privately owned company based in York, Pa. It operates three primary subsidiaries: Susquehanna Media Co., The Pfaltzgraff Co., and Susquehanna Real Estate.