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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000910680-09-000373.txt : 20090806
<SEC-HEADER>0000910680-09-000373.hdr.sgml : 20090806
<ACCEPTANCE-DATETIME>20090806104600
ACCESSION NUMBER:		0000910680-09-000373
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20090806
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090806
DATE AS OF CHANGE:		20090806

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LIFETIME BRANDS, INC
		CENTRAL INDEX KEY:			0000874396
		STANDARD INDUSTRIAL CLASSIFICATION:	CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
		IRS NUMBER:				112682486
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1207

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19254
		FILM NUMBER:		09990354

	BUSINESS ADDRESS:	
		STREET 1:		1000 STEWART AVENUE
		CITY:			GARDEN CITY
		STATE:			NY
		ZIP:			11530
		BUSINESS PHONE:		5166836000

	MAIL ADDRESS:	
		STREET 1:		1000 STEWART AVENUE
		STREET 2:		1000 STEWART AVENUE
		CITY:			GARDEN CITY
		STATE:			NY
		ZIP:			11530

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LIFETIME HOAN CORP
		DATE OF NAME CHANGE:	19930328
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k080609.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">UNITED STATES</font></b><br>
                        <b><font size="2">SECURITIES AND EXCHANGE COMMISSION</font></b><br>
                        <font size="2"><strong>Washington, D.C. 20549</strong></font></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="4">FORM 8-K</font></b></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">CURRENT REPORT</font></b></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934</font></b></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">Date of report (Date of earliest event reported): </font><b><font size="2">August 6, 2009</font></b></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="3">Lifetime Brands, Inc.</font></b><br>
                        <font size="2">(Exact Name of Registrant as Specified in Its Charter)</font></p>
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                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="100%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2"><strong>Delaware</strong></font><br>
                        <font size="2">(State or Other Jurisdiction of Incorporation)</font></p>
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">0-19254</font></b></p>
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                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">11-2682486</font></b></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">(Commission File Number)</font></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">(IRS Employer Identification No.)</font></p>
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">1000 Stewart Avenue, Garden City, New York 11530</font></b><br>
                        <font size="2">(Address of Principal Executive Offices)(Zip Code)</font></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 2.25pt; TEXT-ALIGN: center"><font size="2">(Registrant&rsquo;s Telephone Number, Including Area Code)</font><b><font size="2">516-683-6000</font></b></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 2.25pt; TEXT-ALIGN: center"><font size="2">(Former Name or Former Address, if Changed Since Last Report)</font> <font size="2"><strong>N/A</strong> </font></p>
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0%; TEXT-ALIGN: justify"><font size="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions&nbsp;(</font><i><font size="2">see </font></i><font size="2">General Instruction A.2. below):</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font face="Wingdings">o</font></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font face="Wingdings">o</font></p>
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                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="94%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font face="Wingdings">o</font></p>
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                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="94%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
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                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
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                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="94%">
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font face="Wingdings">o</font></p>
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                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="94%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr align="center" width="100%" noshade size="2">
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><font size="2">Item 2.02.&nbsp;&nbsp; Results of Operation and Financial Condition.</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">On August 6, 2009, Lifetime Brands, Inc. (the &ldquo;Company&rdquo;) issued a press release announcing the Company&rsquo;s results for the three months ended June 30, 2009. A copy of the Company&rsquo;s press release is attached as Exhibit 99.1. </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2"><font size="2">The press release attached as Exhibit 99.1 contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company&rsquo;s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded
        or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. To supplement the Company&rsquo;s results of operations presented in accordance with GAAP, the Company is presenting non-GAAP information regarding earnings (loss) before interest, taxes, depreciation, amortization, restructuring expenses and stock option expense. </font></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">These non-GAAP measures are provided to enhance the user&rsquo;s overall understanding of the Company&rsquo;s current financial performance. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by excluding certain items that may not be indicative of the Company&rsquo;s core operating results. These measures should be considered in addition to
        results prepared in accordance with GAAP, but are not a substitute for or superior to GAAP results. The non-GAAP measures included in the attached press release have been reconciled to the equivalent GAAP measure.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><b><font size="2">Item 9.01.&nbsp;&nbsp; Financial Statements and Exhibits.</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="20" colspan="1">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">(d)&nbsp;</font></p>
                    </td>

                    <td colspan="2"><font size="2">&nbsp;Exhibits</font></td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="32%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="527">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="32%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="20">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="42">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">99.1</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="527">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><a href="ex99-1_f8k080609.htm"><font size="2"><font size="2">Press release dated August 6, 2009. </font></font></a></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="32%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="527">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="32%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td width="20">
                    </td>

                    <td width="42">
                    </td>

                    <td width="527">
                    </td>

                    <td width="138">
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">Signature</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Lifetime Brands, Inc.</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 30.6pt; TEXT-INDENT: -30.6pt; TEXT-ALIGN: left"><font size="2">By:&nbsp;</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="233"><font size="2">&nbsp;/s/ Laurence Winoker</font></td>

                    <td width="220">
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="4" colspan="1">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td width="491" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Laurence Winoker<br>
                        Senior Vice President &ndash; Finance, Treasurer </font><br>
                        <font size="2">and Chief Financial Officer</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Date: August 6, 2009</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>
                </tr>

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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>
                </tr>
            </table>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ex99-1_f8k080609.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <body style="FONT-FAMILY: 'Times New Roman'" bgcolor="#ffffff">
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><b><font size="2"><a name="ex99-f8k080609"></a>Exhibit 99.1</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><img src="img1.jpg"><br>
        </p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">LIFETIME BRANDS ANNOUNCES SECOND QUARTER 2009 FINANCIAL RESULTS</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><i><b><font size="2">Company Reports Significant Increases in Adjusted EBITDA</font></b></i></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><b><font size="2">Garden City, NY, August 6, 2009</font></b> <font size="2">-- Lifetime Brands, Inc. (NASDAQ: LCUT), North America's leading resource for nationally branded kitchenware, tabletop and home d&eacute;cor products, today announced financial results for the second quarter ended June 30, 2009. </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">Net sales for the three months ended June 30, 2009, totaled $85.3 million, as compared to net sales of $92.4 million for the same period in 2008. On a comparable basis, excluding 2008 net sales of the Company&rsquo;s retail stores, which were closed in December 2008, and adjusting 2009 net&nbsp;sales of Mikasa&reg;, which was acquired on June 6, 2008, to reflect net sales only for the period after June 6,
        2009, the same post-acquisition period as 2008, net sales for the quarter were $78.4 million in 2009, as compared to $85.2 million in 2008. </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">The Company reported a net loss of $1.3 million, or $0.10 per diluted share for the 2009 period, compared to a net loss of $3.6 million, or $0.30 per diluted share, for the 2008 quarter. On a pre-tax basis, the loss for the quarter was $1.0 million in 2009, as compared to a loss of $8.9 million in 2008. </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">Adjusted EBITDA, which the Company defines as earnings (loss) before interest, taxes, depreciation, amortization, restructuring expenses and stock option expense, as shown in the table below, was $4.6 million for the 2009 quarter, as compared to $(2.7) million in the 2008 period. For the six months ended June 30, 2009, Adjusted EBITDA was $5.6 million, as compared to $(5.2) million in the 2008 period.
        </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">Net sales for the Company&rsquo;s wholesale segment in the second quarter of 2009 were $80.9 million, an increase of 1.3%, compared to net sales of $79.9 million for the 2008 quarter. On a comparable basis, adjusting 2009 net&nbsp;sales of Mikasa&reg;, which was acquired on June 6, 2008, to reflect net sales only for the period after June 6, 2009, the same post-acquisition period as 2008, the wholesale
        segment&rsquo;s net sales were $74.6 million in 2009, a decrease of $5.3 million or 6.6% compared to the 2008 period. </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">The decrease in comparable wholesale net sales was primarily attributable to lower volume,</font> <font size="2">due, in part, to the non-recurrence of sales to Linens &lsquo;N Things, which was liquidated in 2008, less inventory reduction plan activity, the Company&rsquo;s elimination of certain low-margin business in the 2009 period and the planned effect of a change in the Company&rsquo;s relationship
        with Accent-Fairchild Group, a Canadian company that previously had served as the Company&rsquo;s distributor in Canada and now operates a portion of its business as Lifetime Brands Canada. The Company&rsquo;s share of the operating profit of Lifetime Brands Canada is included in net sales. </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="right">
            <a name="PAGENUM"></a>&nbsp;
        </div>

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            <hr align="center" width="100%" noshade size="2">
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">Net sales for the direct-to-consumer segment in the second quarter of 2009 were $4.4 million compared to $12.5 million for the 2008 period. In 2009, the Company&rsquo;s direct-to-consumer segment reflects the results of the Pfaltzgraff&reg; Internet website and mail order catalog and the Mikasa&reg; Internet website. On a comparable basis, excluding the net sales from the Mikasa&reg; Internet website in
        2009 and the net sales generated by the Company&rsquo;s retail stores in 2008, net sales for the direct-to-consumer segment were $3.8 million in the second quarter of 2009 compared to $5.3 million in the 2008 period. </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">Jeffrey Siegel, Chairman, President and Chief Executive Officer, commented, &ldquo;The substantial year-over-year improvement in our Adjusted EBITDA is a clear indication that the steps we have taken to restructure our business have borne fruit. Our improved operating results, combined with the success of our on-going inventory reduction efforts, enabled us to reduce our bank borrowings by $38.0 million,
        as compared to June 30, 2008, and by $31.5 million, as compared to December 31, 2008.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">&ldquo;We continue to work closely with our retail partners to create customized sales programs tailored to today&rsquo;s business climate. In addition, we think the current environment presents us with opportunities to expand our market share in all our product classifications. Consequently, we believe that we are well positioned to take advantage of the holiday shopping season.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><b><font size="2">Second-Quarter 2009 Conference Call</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">Lifetime has scheduled a conference call for Thursday, August 6, 2009 at 11:00 a.m. ET to discuss its second-quarter 2009 results. The dial-in number for the call is 706-679-7464. A replay of the call will also be available through August 13, 2009 and can be accessed by dialing 706-645-9291, conference ID #22137796. A live webcast of the call will be broadcast at the Company&rsquo;s web site,
        </font><u><font size="2">www.lifetimebrands.com</font></u><font size="2">. For those who cannot listen to the live broadcast, an audio replay of the call will also be available on the site. </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><b><font size="2">Non-GAAP Financial Measures</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">This earnings release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and
        presented in accordance with GAAP in the statements of income, balance sheets, or statements of cash flows of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. These
        non-GAAP measures are provided because management of the Company uses these financial measures in maintaining and evaluating the Company's on-going financial results and trends. Management uses this non-GAAP information as an indicator of business performance. </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="right">
            <a name="PAGENUM"><font face="Arial" color="#000000" size="2">2</font></a>
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        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><b><font size="2">Forward-Looking Statements</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">In this press release, the use of the words "expect," "will," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent the Company&rsquo;s current judgment about possible future events. The Company believes these judgments are reasonable, but these statements are not guarantees of any events or
        financial results, and actual results may differ materially due to a variety of important factors. Such factors might include, among others, the Company&rsquo;s ability to comply with the requirements of its credit agreement; the availability of funding under that credit agreement; the Company&rsquo;s ability to maintain adequate liquidity and financing sources and an appropriate level of debt; changes in general economic conditions which could affect customer payment practices or
        consumer spending; the impact of changes in general economic conditions on the Company&rsquo;s customers; changes in demand for the Company&rsquo;s products; shortages of and price volatility for certain commodities; significant changes in the competitive environment and the effect of competition on the Company&rsquo;s markets, including on the Company&rsquo;s pricing policies, financing sources and an appropriate level of debt.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><b><font size="2">Lifetime Brands, Inc. </font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">Lifetime Brands is North America&rsquo;s leading resource for nationally branded kitchenware, tabletop and home d&eacute;cor products. The Company markets its products under many of the industry&rsquo;s best known brands, including Farberware&reg;, KitchenAid&reg;, Pfaltzgraff&reg;, Mikasa&reg;, Cuisinart&reg;, Calvin Klein&reg;, CasaModa&reg;, Gorham&reg;, Hoffritz&reg;, International&reg; Silver, Kirk
        Stieff&reg;, Nautica&reg;, Pedrini&reg;, Roshco&reg;, Sabatier&reg;, Sasaki&reg;, Towle&reg; Silversmiths, Tuttle&reg;, Wallace&reg; and Vasconia&reg;. Lifetime&rsquo;s products are distributed through most major retailers in North America.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><b><font size="2">Contacts:</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">Lifetime Brands, Inc.</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" align="right" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt"><font size="2">Lippert/Heilshorn &amp; Assoc.</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%"><font size="2">Laurence Winoker, Chief Financial Officer </font></td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" align="right" width="50%"><font size="2">Harriet Fried, Vice President</font></td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%"><font size="2">516-203-3590</font></td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" align="right" width="50%"><font size="2">212-838-3777</font></td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><u><font size="2">investor.relations@lifetimebrands.com</font></u></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" align="right" width="50%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt"><u><font size="2">hfried@lhai.com</font></u></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="right">
            <a name="PAGENUM"><font face="Arial" color="#000000" size="2">3</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr align="center" width="100%" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="3">LIFETIME BRANDS, INC.</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(In thousands, except per share data)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(unaudited)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="26%">&nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="5">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font face="Times New Roman, Times, serif"><font size="2"><b>Three Months Ended</b><br>
                    <b>June 30,</b></font></font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="5">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font face="Times New Roman, Times, serif"><font size="2"><b>Six Months Ended</b><br>
                    <b>June 30,</b></font></font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font face="Times New Roman, Times, serif" size="2">2009</font></b></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font face="Times New Roman, Times, serif" size="2">2008</font></b></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font face="Times New Roman, Times, serif" size="2">2009</font></b></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font face="Times New Roman, Times, serif" size="2">2008</font></b></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(as adjusted)</font></p>
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(as adjusted)</font></p>
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.2in" align="left"><font face="Times New Roman, Times, serif" size="2">Net sales</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$85,334</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$92,399</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$175,548</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$190,593</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr height="16">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.2in" align="left"><font face="Times New Roman, Times, serif" size="2">Cost of sales</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">53,106</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">55,288</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">111,254</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">114,893</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.2in" align="left"><font face="Times New Roman, Times, serif" size="2">Distribution expenses</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">9,502</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">12,766</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">20,550</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">26,156</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.2in" align="left"><font face="Times New Roman, Times, serif" size="2">Selling, general and administrative expenses</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">21,955</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">31,183</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">45,522</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">62,286</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.2in" align="left"><font face="Times New Roman, Times, serif" size="2">Restructuring expenses </font></p>
                </td>

                <td valign="bottom" align="left" width="2%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(663</font></p>
                </td>

                <td style="PADDING-BOTTOM: 0.5pt" valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">107</font></p>
                </td>

                <td style="PADDING-BOTTOM: 0.5pt" valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">161</font></p>
                </td>

                <td style="PADDING-BOTTOM: 0.5pt" valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">2,987</font></p>
                </td>

                <td style="PADDING-BOTTOM: 0.5pt" valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.2in" align="left"><font face="Times New Roman, Times, serif" size="2">Income (loss) from operations</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">1,434</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(6,945</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(1,939</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(15,729</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.2in" align="left"><font face="Times New Roman, Times, serif" size="2">Interest expense </font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(2,894</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(2,655</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(5,767</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(5,336</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%">
                    <p style="MARGIN-LEFT: 0.4in; TEXT-INDENT: -14px" align="left"><font face="Times New Roman, Times, serif" size="2">Loss before income taxes and equity in earnings of Grupo Vasconia, S.A.B.</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(1,460</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(9,600</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(7,706</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(21,065</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.4in; TEXT-INDENT: -14px" align="left"><font face="Times New Roman, Times, serif" size="2">Income tax benefit (provision) </font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(281</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">5,341</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">(416</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">10,192</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.4in; TEXT-INDENT: -14px" align="left"><font face="Times New Roman, Times, serif" size="2">Equity in earnings of Grupo Vasconia, S.A.B., net of taxes </font></p>
                </td>

                <td valign="bottom" align="left" width="2%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">488</font></p>
                </td>

                <td style="PADDING-BOTTOM: 0.5pt" valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">707</font></p>
                </td>

                <td style="PADDING-BOTTOM: 0.5pt" valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">910</font></p>
                </td>

                <td style="PADDING-BOTTOM: 0.5pt" valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">964</font></p>
                </td>

                <td style="PADDING-BOTTOM: 0.5pt" valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="top" width="26%">
                    <p style="MARGIN-LEFT: 0.2in" align="left"><b><font face="Times New Roman, Times, serif" size="2">NET LOSS</font></b></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp; $ (1,253</font></p>
                </td>

                <td style="PADDING-BOTTOM: 2pt" valign="bottom" align="left" width="2%"><font size="2">)</font></td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$ (3,552</font></p>
                </td>

                <td style="PADDING-BOTTOM: 2pt" valign="bottom" align="left" width="2%">
                    <p><font face="Times New Roman, Times, serif" size="2">)</font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$&nbsp;&nbsp; (7,212</font></p>
                </td>

                <td style="PADDING-BOTTOM: 2pt" valign="bottom" align="left" width="2%"><font size="2">)</font></td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$&nbsp; (9,909</font></p>
                </td>

                <td style="PADDING-BOTTOM: 2pt" valign="bottom" align="left" width="2%"><font size="2">)</font></td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="right" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-TOP: medium none" valign="bottom" align="left" width="2%">
                </td>
            </tr>

            <tr bgcolor="#cceeff">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in" valign="bottom" width="26%">
                    <p style="MARGIN-LEFT: 0.4in; TEXT-INDENT: -14px" align="left"><font face="Times New Roman, Times, serif"><font size="2"><b>BASIC AND DILUTED LOSS PER</b> <br>
                    <b>COMMON</b> <b>SHARE</b> </font></font></p>
                </td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$&nbsp;&nbsp; (0.10</font></p>
                </td>

                <td style="PADDING-BOTTOM: 2pt" valign="bottom" align="left" width="2%"><font size="2">)</font></td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2"><br>
                    $&nbsp;&nbsp; (0.30</font></p>
                </td>

                <td style="PADDING-BOTTOM: 2pt" valign="bottom" align="left" width="2%"><font size="2">)</font></td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$&nbsp;&nbsp;&nbsp;&nbsp; (0.60</font></p>
                </td>

                <td style="PADDING-BOTTOM: 2pt" valign="bottom" align="left" width="2%"><font size="2">)</font></td>

                <td valign="bottom" align="left" width="2%">
                    <p>&nbsp;</p>
                </td>

                <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" align="right" width="5%">
                    <p><font face="Times New Roman, Times, serif" size="2">$&nbsp;&nbsp; &nbsp;(0.83</font></p>
                </td>

                <td style="PADDING-BOTTOM: 2pt" valign="bottom" align="left" width="2%"><font size="2">)</font></td>
            </tr>
        </table>
        <br>
        <br>

        <div align="left">
            &nbsp;
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="right">
            <a name="PAGENUM"><font face="Arial" color="#000000" size="2">4</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr align="center" width="100%" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="3">LIFETIME BRANDS, INC. </font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">CONDENSED CONSOLIDATED BALANCE SHEETS</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(In thousands, except share data)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="center">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="74%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="74%">
                        <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">June 30,</font></b><br>
                        <b><font size="2">2009</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">December 31,</font></b><br>
                        <b><font size="2">2008</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="74%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">(unaudited)</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">(as adjusted)</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">ASSETS</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">CURRENT ASSETS</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Cash and cash equivalents</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">$&nbsp;&nbsp; &nbsp;3,830</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">$&nbsp; &nbsp;3,478</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 13.5pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Accounts receivable, less allowances of $13,210 at 2009 and $14,651 at 2008</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">49,056</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">67,562</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Inventory </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">122,943</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">141,612</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Income taxes receivable </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">226</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">11,597</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Prepaid expenses and other current assets </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">8,878</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">8,429</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.45in; TEXT-INDENT: -5.05pt; TEXT-ALIGN: left"><font size="2">TOTAL CURRENT ASSETS</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">184,933</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">232,678</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">&nbsp;&nbsp;</td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">PROPERTY AND EQUIPMENT, net</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">47,298</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">49,908</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">INTANGIBLES, net </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">38,007</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">38,420</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.1pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">INVESTMENT IN GRUPO VASCONIA, S.A.B. </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">18,808</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">17,784</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.1pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">OTHER ASSETS</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">4,061</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">2,991</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 49.5pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">TOTAL ASSETS</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="8%">
                        <p><font size="2">$293,107</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 2.25pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="8%">
                        <p><font size="2">$341,781</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 2.25pt" valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="top" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">CURRENT LIABILITIES</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Bank borrowings </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">$ &nbsp;57,833</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">$ &nbsp;89,300 </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Accounts payable</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">25,213</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">24,151</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Accrued expenses</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">22,337</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">36,530</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.45in; TEXT-INDENT: -5.05pt; TEXT-ALIGN: left"><font size="2">TOTAL CURRENT LIABILITIES</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">105,383</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">149,981</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">&nbsp;&nbsp;</td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">DEFERRED RENT &amp; OTHER LONG-TERM LIABILITIES</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">23,254</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">23,054</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">DEFERRED INCOME TAXES </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">3,710</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">3,373</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">CONVERTIBLE NOTES </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">69,166</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">67,864</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="top" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">STOCKHOLDERS&rsquo; EQUITY</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="top" width="74%">
                        <p style="MARGIN-LEFT: 27pt; TEXT-INDENT: -13.5pt; TEXT-ALIGN: left"><font size="2">Common stock, $0.01 par value, shares authorized: 25,000,000; shares issued <br>
                        and outstanding: 12,023,059 in 2009 and 11,989,724 in 2008</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">120</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">120</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Paid-in capital</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">128,437</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">127,497</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Accumulated deficit</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">(28,730</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="8%">
                        <p><font size="2">(21,515</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 0.2in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Accumulated other comprehensive loss </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">(8,233</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">(8,593</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 27.35pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">TOTAL STOCKHOLDERS&rsquo; EQUITY</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">91,594</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="8%">
                        <p><font size="2">97,509</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr style="page-break-inside: avoid" bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" width="74%">
                        <p style="MARGIN-LEFT: 49.5pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="8%">
                        <p><font size="2">$293,107</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 2.25pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="8%">
                        <p><font size="2">$341,781</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 2.25pt" valign="bottom" align="left" width="2%">
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="right">
            <a name="PAGENUM"><font face="Arial" color="#000000" size="2">5</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr align="center" width="100%" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2"><b><font size="3">LIFETIME BRANDS, INC. </font></b></font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Supplemental Information</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Reconciliation of GAAP to Non-GAAP Operating Results</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(In thousands)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(unaudited)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="center">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" colspan="5">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Three Months Ended </font></b><br>
                        <b><font size="2">June 30,</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" colspan="5">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Six Months Ended</font></b><br>
                        <b><font size="2">June 30,</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">2009</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">2008</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">2009</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" nowrap colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">2008</font></b></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="11">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>
                </tr>

                <tr bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Net loss as reported</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">$(1,253</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">$(3,552</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">$(7,212</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" nowrap align="right" width="10%">
                        <p><font size="2">$ (9,909</font></p>
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%"><font size="2">)</font></td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 4.35pt; TEXT-ALIGN: left"><font size="2">Add back:</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" nowrap align="right" width="10%">
                        <p>&nbsp;</p>
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>
                </tr>

                <tr bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 13.35pt; TEXT-ALIGN: left"><font size="2">Provision for income taxes</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">281</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">(5,341</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">416</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="right" width="10%">
                        <p><font size="2">(10,192</font></p>
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 13.35pt; TEXT-ALIGN: left"><font size="2">Interest expense </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">2,894</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">2,655</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">5,767</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="right" width="10%">
                        <p><font size="2">5,336</font></p>
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                    </td>
                </tr>

                <tr bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 13.35pt; TEXT-ALIGN: left"><font size="2">Depreciation and amortization</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">2,485</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">2,756</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">5,087</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="right" width="10%">
                        <p><font size="2">5,331</font></p>
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 13.35pt; TEXT-ALIGN: left"><font size="2">Amortization of bank fees</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">325</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">37</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">401</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="right" width="10%">
                        <p><font size="2">65</font></p>
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                    </td>
                </tr>

                <tr bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 13.35pt; TEXT-ALIGN: left"><font size="2">Restructuring expenses</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">(663</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">107</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="right" width="10%">
                        <p><font size="2">161</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="right" width="10%">
                        <p><font size="2">2,987</font></p>
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 13.35pt; TEXT-ALIGN: left"><font size="2">Stock option expense</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="10%">
                        <p><font size="2">483</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="10%">
                        <p><font size="2">615</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" align="right" width="10%">
                        <p><font size="2">942</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 1pt solid" valign="bottom" nowrap align="right" width="10%">
                        <p><font size="2">1,228</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 1pt" valign="bottom" nowrap align="left" width="2%">
                    </td>
                </tr>

                <tr bgcolor="#cceeff">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt" valign="bottom" nowrap width="42%">
                        <p style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Adjusted EBITDA </font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="10%">
                        <p><font size="2">$&nbsp;4,552</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 2.25pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="10%">
                        <p><font size="2">$(2,723</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 2.25pt" valign="bottom" align="left" width="2%">
                        <p><font size="2">)</font></p>
                    </td>

                    <td valign="bottom" align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" align="right" width="10%">
                        <p><font size="2">$ 5,562</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 2.25pt" valign="bottom" align="left" width="2%">
                    </td>

                    <td valign="bottom" nowrap align="left" width="2%">
                        <p>&nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" valign="bottom" nowrap align="right" width="10%">
                        <p><font size="2">$ (5,154</font></p>
                    </td>

                    <td style="PADDING-BOTTOM: 2.25pt" valign="bottom" nowrap align="left" width="2%"><font size="2">)</font></td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="right">
            <a name="PAGENUM"><font face="Arial" color="#000000" size="2">6</font></a>
        </div>
    </body>
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