A.T. CROSS COMPANY REPORTS SALES AND PROFIT GROWTH FOR THIRD QUARTER AND NINE MONTHS

~ Quarterly Consolidated Net Sales up 9.8% ~
~ Gross and Operating Margin Continue Positive Trend ~
~ Quarterly Earnings Per Share Increase $0.09 to $0.02 ~

Lincoln, RI – October 26, 2006 – A.T. Cross Company (AMEX: ATX)today announced financial results for the third quarter and nine months ended September 30, 2006.

Third Quarter Results

Consolidated net sales for third quarter of 2006 were up 9.8% to $31.9 million compared to $29.1 million in the third quarter of 2005. Global writing instrument and accessories revenue was $25.3 million, up 3.1% compared to $24.6 million in the same period last year. The Company’s optical segment, comprised of Costa Del Mar, had a third quarter net sales increase of 46.3% to $6.6 million compared to $4.5 million in the prior year’s quarter.

Gross margin was 53.4% compared to 45.7% last year. The consolidated gross margin improvement was primarily driven by continued success in lowering the cost of manufacturing in the writing instrument and accessories segment. Operating expenses, including restructuring charges, were $16.8 million, or 52.7% of net sales in the quarter, versus $15.1 million, or 52.0% of net sales, a year ago. The higher operating expenses were primarily incurred to drive the sales growth of Costa Del Mar. Consolidated operating income was $216,000 as compared to a $1.8 million loss for the third quarter of 2005.

Net income for the third quarter was $320,000, or $0.02 per share, compared to a net loss of $1 million, or $0.07 per share, last year.

David G. Whalen, President and Chief Executive Officer of A.T. Cross said, “Ongoing execution of our stated initiatives allowed us to continue the trend of sales growth and margin improvement into the third quarter. We are particularly pleased to have generated our second consecutive quarter of growth in our quality writing instrument and accessories segment. Planned cost-reduction programs, positive customer response to our new products and continued strength of our optical segment allowed for solid third quarter results.”

Nine-Month Results

Consolidated net sales for the nine-months ended September 30, 2006 were $94.0 million, up 7.2% from $87.7 million for the first nine months of 2005. Sales for the writing instrument and accessories segment were flat at $72.5 million. Sales for the optical segment, comprised of Costa Del Mar, increased 42.1% to $21.5 million compared with $15.1 million for the first nine months of 2005.

Net income for the year to date was $600,000, or $0.04 per share, compared to a net loss of $2.0 million, or $0.13 per share, last year.

Cash flow from operating activities was approximately $5.8 million during the current nine-month period. Additionally, the Company’s global credit agreement, established in December 2005 and initially set to expire at the end of 2007, has been amended and now expires on December 31, 2008.

David G. Whalen, continued, “We believe that the momentum established during the first nine months of 2006 will carry into our peak holiday season. In particular, we expect that new product introductions, cost reductions stemming from progress on our writing instrument manufacturing transition and continued growth from Costa Del Mar will enable us to deliver full year growth and impressive bottom line improvement.”

Conference Call

The Company’s management will host a conference call tomorrow, October 27, 2006, 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 27, 2006 through November 3, 2006 at 1-877-519-4471 or 973-341-3080, pin number 7996357.

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, 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 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 financial performance, new product introductions and cost reductions ). 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 October 25, 2006. 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

Investor Relations:
Financial Dynamics
Melissa Myron/Caren Barbara
212-850-5600

Download a spreadsheet with 2006 Third Quarter Results