A.T. CROSS COMPANY REPORTS STRONG SECOND QUARTER RESULTS

Net Sales increase 18.5%
Income Increases 71% to $3.2 million
EPS doubles

Lincoln, RI – July 23, 2008 – A.T. Cross Company (AMEX: ATX) today announced financial results for the second quarter ended June 28, 2008.

Consolidated sales for the second quarter of 2008 increased 18.5% to $43.2 million compared to $36.5 million in the second quarter of 2007. The Cross Accessory Division (CAD), also referred to as the writing instruments and accessories segment, recorded revenue of $25.9 million, up 8.3% compared to the same period last year. The Company’s optical segment, which now includes the Native Eyewear business, had a second quarter sales increase of 37.7% to $17.3 million, compared to the same period last year. This increase was driven both by continued strong growth for the Costa Del Mar brand as well as the contribution from Native.

Gross margin in the second quarter improved to 56.4% versus 56.1% in last year’s second quarter. The Company noted that the gross margin improvement was the result of a mix shift toward the optical segment. The Company continues to expect to see full year gains in gross margin. Operating expenses were $21.2 million, or 49.0% of sales in the quarter, versus $18.6 million, or 50.9% of sales for the same period a year ago. This improvement was driven by an ongoing focus on cost control and the achievement of some economies of scale on the sales growth. Consolidated operating income in the second quarter was $3.2 million versus $1.9 in the second quarter of last year.

Net income for the second quarter was $1.9 million, or $0.12 per diluted share, compared to $990,000, or $0.06 per diluted share, last year.

David G. Whalen, President and Chief Executive Officer of A.T. Cross said, “We are very pleased with the continued and broad-based strength of our business despite a highly challenging market environment. We believe that our performance speaks to the power of our increasingly diversified group of brands and to the ongoing improvements we are making to our operating model. We remain on track to achieve our financial goals for the year and we have made excellent progress in advancing each of our core strategies. We have grown our accessories and writing instrument business, lowered our cost structure, grown our optical businesses, and successfully leveraged our recent acquisition.”

Balance Sheet

At the end of the second quarter the Company had cash and cash equivalents of $14.4 million versus $13.8 million at this time last year. Accounts receivable increased by 25.6% to $30.3 million. Inventory at the end of the quarter was $31.1 million versus the year-ago level of $33.4 million. The Company noted it had achieved a net reduction of inventory even with the addition of $1.8MM of inventory for the Native business. The reduction was due to a $4.4 million improvement in the inventory position of the Cross Accessory Division. The Company’s long term debt increased to $21.7 million versus $3.5 million at this time last year, due primarily to the Native acquisition.

Guidance

The Company stated that it believes it will achieve full year net sales growth of 9%-12% and its target for full year 2008 earnings per share in the range of $0.49 to $0.51.

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. A.T. Cross products, including award-winning quality writing instruments, timepieces, business accessories and Costa Del Mar and Native Eyewear sunglasses, are distributed in retail and corporate gift channels worldwide. For more information, visit the A.T. Cross website at www.cross.com, Costa Del Mar's website at Costa Del Mar and the Native Eyewear website at www.nativeyewear.com.

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 the expected continued strength of the consolidated business, the continued improvement in the Company’s operating model, the expected attainment of the Company’s financial goals, the expected continued strength of the Optical segment, and the expected success of new product introductions, brand extensions and the direct to consumer initiatives ). 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 domestic and international economic market uncertainty, the continued increase in energy costs, the continued beneficial effect of foreign exchange on the Company’s revenues, consumers' and retailers' reaction to the Company's existing and new writing instrument and accessory products, and the success of the direct to consumer initiatives, 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 July 23, 2008. 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
203-682-8229

Download a spreadsheet with 2008 Second Quarter Results