A.T. CROSS COMPANY REPORTS A 10.2% INCREASE IN FIRST QUARTER 2007 SALES
Quarterly Earnings Per Share of $0.01 vs. Loss of $0.01 Per Share Last Year
Company Reaffirms 2007 EPS Guidance of $0.37 - $0.40

Lincoln, RI – May 1, 2007 – A.T. Cross Company (AMEX: ATX) today announced financial results for the first quarter ended March 31, 2007.

Consolidated sales for the first quarter of 2007 increased 10.2% to $32.6 million compared to $29.6 million in the first quarter of 2006. Global writing instruments and accessories revenue was $24.7 million, up 4.8% compared to the same period last year. This represents the fourth consecutive quarter of sales growth for the WI&A segment. The Company’s optical segment, comprised of Costa Del Mar, had a first quarter sales increase of 31.5% to $7.9 million, compared to the same period last year.

Gross margin increased 340 basis points to 56.4%, compared to 53.0% last year, with improvements in both segments from the prior year. Operating expenses were $18.1 million, or 55.5% of sales in the quarter, versus $15.9 million, or 53.7% of sales a year ago. Operating expenses increased as a result of higher sales related expenses and planned increases in marketing expenditures in the first quarter by both business segments. Consolidated operating income was $0.3 million compared to an operating loss of $0.2 million in the first quarter of 2006.

Net income for the quarter was $0.1 million, or $0.01 per share, compared to a net loss of $0.1 million, or $0.01 per share, last year.

In March 2007, the Company completed a sales leaseback transaction of its headquarters facility which generated gross proceeds of $15.75 million. Such proceeds are reflected in the March 31, 2007 balance sheet.

David G. Whalen, President and Chief Executive Officer of A.T. Cross said, “A.T. Cross had a strong start to 2007 and we are pleased with our financial results for the quarter. We view our first quarter as the one where we prepare both of our businesses for a successful year, and we accomplished that goal. Costa is well positioned as we enter the second quarter, its peak season. The Cross brand and business also continues to make progress and will be similarly well positioned at the end of the summer as we enter the important September to December period. The first quarter went well and we are expecting an excellent year for the company.”

Conference Call

About A.T. Cross Company

Building on the rich tradition of its award-winning writing instruments and reputation for innovation and craftsmanship, A.T. Cross Company is a designer and marketer of branded personal and business accessories. Cross provides a range of distinctive products that appeal to a growing market of consumers seeking to enhance their image and facilitate their lifestyle. Cross products, including award-winning quality writing instruments, leather goods, timepieces, and business accessories and Costa Del Mar sunglasses, are distributed in retail and corporate gift channels worldwide. For more information, visit the A.T. Cross website at www.cross.com and the Costa Del Mar.

Statements contained in this release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (including but not limited to statements relating to improved revenue and earnings growth for both segments of the business. In addition, words such as "believes," "anticipates," "expects," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to consumers’ and retailers’ reaction to the Company’s existing and new writing instrument and accessory products, retailers’ support for the Company’s merchandising initiatives, and the ability of the Company to match forecasts and production with consumer demand, and are not guarantees since there are inherent difficulties in predicting future results. Actual results could differ materially from those expressed or implied in the forward-looking statements. The information contained in this document is as of May 1, 2007. The Company assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments. Additional discussion of factors that could cause actual results to differ materially from management's expectations is contained in the Company's filings under the Securities Exchange Act of 1934.

CONTACTS:
Kevin F. Mahoney
Vice President, Finance and
Chief Financial Officer
401-335-8470

Integrated Corporate Relations
James Palczynski/David Griffith
203-682-8200

Download a spreadsheet with 2007 First Quarter Results