A.T. CROSS COMPANY REPORTS THIRD QUARTER RESULTS

Lincoln, RI – October 22, 2003 – A.T. Cross Company (AMEX: ATX), today announced financial results for the third quarter and nine months ended October 4, 2003.

Third Quarter Results

Net sales increased 7.6% to $31.3 million compared with $29.1 million for the third quarter of 2002. The improvement was driven by the continued contribution from the recently acquired Costa Del Mar, a manufacturer and marketer of premium polarized sunglasses, and was partially offset by a decline in revenue from the writing instruments and accessories segment. Costa Del Mar revenue was $3.2 million in the quarter. Writing instrument and accessory revenue declined 3.2% to $28.1 million compared to the prior year quarter.

The Company reported a third quarter operating loss of $1.5 million compared to an operating profit of $1.5 million for the 2002 third quarter. The operating loss in the third quarter of 2003 includes a pre-tax restructuring charge of $1.7 million related to the Company’s previously announced global reorganization efforts. In addition to the restructuring costs, the decline in third quarter operating profit was primarily due to lower gross margins from the writing instruments and accessories segment. Margins were impacted by several factors including product mix and a highly competitive retail and corporate gift environment.

The net loss in the third quarter was $1.0 million, or $0.06 per share, versus net income of $1.3 million, or $0.08 per share, last year. The third quarter of 2003 includes the aforementioned restructuring costs, which total $1.1 million after-tax, or $0.07 per share.

The restructuring costs incurred in the third quarter are primarily for severance costs in accordance with the Company's global reorganization efforts. The reorganization program was designed to eliminate certain non-manufacturing positions and to systematically transfer certain manufacturing operations offshore. These efforts are being undertaken to consolidate and reduce costs, and free capital for product and brand development.

Commenting on the third quarter performance, David G. Whalen, President and Chief Executive Officer of A.T. Cross Company, stated, “Although the overall environment has remained challenging, we did experience pockets of strength during the third quarter, including a rebound in our Asia business and growth in our corporate gift business. In addition, our Costa Del Mar sunglass business continues to perform on plan. Importantly, we made significant progress during the quarter in launching our corporate restructuring and cost rationalization programs. Our initiatives to reduce non-manufacturing costs as well as our program to move a portion of our manufacturing operations to Asia are advancing according to plan. As previously announced, we continue to expect these actions will result in pre-tax restructuring charges of approximately $2.5 million in 2003. This important program is on track and we look forward to the positive impact this initiative will have on resource and capital allocation as we continue to build and diversify the Cross business going forward.”

Nine-Month Results

Net sales for the first nine months of 2003 increased 3.0% to $86.5 million from $84.0 million for the first nine months of 2002. The improvement was due to the contribution of $6.3 million of Costa Del Mar revenue, since the acquisition date, partially offset by a decline in writing instrument and related accessory revenue of 4.6% to $80.2 million compared to the prior year period.

The Company reported an operating loss of $562,000 compared to an operating profit of $1.5 million for the prior year period. Year-to-date operating results include a pre-tax restructuring charge of $1.7 million as well as a gain of $1.0 million on the disposition of the Company's former Irish manufacturing facility that was sold in the second quarter.

The net loss for the nine-month period was $359,000, or $0.02 per share, which includes after-tax restructuring costs of approximately $1.1 million, or $0.07 per share, as well as an after-tax gain of approximately $644,000, or $0.04 per share, related to the sale of the Irish property. This compares to net income of $1.6 million, or $0.10 per share, for the prior year period.

“As we enter the fourth quarter, our most important selling period, we believe we are well positioned for the holiday season,” added Mr. Whalen. “We have strong programs in place with our largest customers and we also have an important product launch scheduled, the Cross Vice, a unique and versatile writing instrument that will hit shelves in time for the holiday season. Moreover, although it is too early to accurately predict how consumer sentiment will trend, we are encouraged by preliminary external economic predictions for the remainder of the year.”

Mr. Whalen concluded, “We have accomplished a great deal thus far in 2003, a year during which we have focused on evolving the business and creating a strong foundation for the future. We believe we are on track to meet our long-term goal of creating a distinctive, diversified and profitable personal accessories business that will enhance shareholder value.”

The Company’s management will host a conference call tomorrow, October 23, 2003, at 9:00 a.m. Eastern Time. A live webcast of the call will be accessible here. The webcast will be archived for 30 days on the site, while a telephone replay of the call will be available beginning at 11:00 a.m. Eastern Time on October 23rd through October 30th at 1-402-220-1605 or 1-877-710-5302.

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, timepieces, business accessories and Costa Del Mar sunglasses, are distributed in retail and corporate gift channels worldwide. For more information, visit the A.T. Cross web site at www.cross.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 statements relating to the expected external economic recovery, the anticipated effect of the launch of new writing instrument products, in particular, Vice, and the anticipated success of fourth quarter programs with office superstores. 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 the ability to launch new products successfully, consumers’ reaction to the Company’s existing and new writing instrument products, consumer reaction to the Company’s ability to transfer its brand writing instruments, the inability of the Company to impact the overall economic environment and the inability to enforce the office superstores’ commitments for holiday gift programs, 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 October 22, 2003. 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:
John T. Ruggieri
Senior Vice President and
Chief Financial Officer
401-335-8470

Investor Relations:
Financial Dynamics
Cara O’Brien/Melissa Myron
Press: Claudine Cornelis/Stephanie Sampiere
212-850-5600

Download a spreadsheet with 2003 Third Quarter Results