A.T. CROSS COMPANY REPORTS IMPROVED PROFITABILITY FOR BOTH SECOND QUARTER AND SIX MONTHS

~ Optical Segment Sales Grow Nearly 50% in the Quarter~
~Writing Instrument Sales and Gross Margins Improve~

Lincoln, RI – July 26, 2006 – A.T. Cross Company (AMEX: ATX) today announced financial results for the second quarter and six months ended July 1, 2006.

Second Quarter Results

Net sales in the second quarter of 2006 were $32.5 million compared to $29.0 million in the second quarter of 2005. Global writing instrument and accessory revenue was $23.6 million, up 2.5% compared to $23.1 million in the same period last year. The Company’s optical segment, comprised of Costa Del Mar, had a second quarter net sales increase of 48.6% to $8.9 million compared to $5.9 million in the prior year’s quarter.

Gross margin was 54.5% compared to 49.6% last year. The gross margin improvement was primarily attributable to lower costs resulting from the writing instrument segment’s manufacturing and distribution initiatives and included a LIFO benefit resulting from lower domestic inventories. Operating expenses, including restructuring charges, were $17.0 million, or 52.4% of net sales in the quarter, versus $15.2 million, or 52.5% of net sales a year ago. The higher spending levels are largely in support of the second quarter sales growth of Costa Del Mar.

Net income for the second quarter was $409,000, or $0.03 per share, compared to a net loss of $463,000, or $0.03 per share, last year.

David G. Whalen, President and Chief Executive Officer of A.T. Cross, stated, “We are pleased with the first half performance of both our business segments. Costa Del Mar’s high-quality, well-designed products continue to resonate with a growing number of consumers, as revenue growth of almost 50% surpassed even our own high expectations. Further, the improvement we are seeing in our quality writing instrument financial results stems from the successful execution of our stated strategies to build the Cross brand while reducing our cost structure.

Looking forward, we will continue to focus on initiatives that are designed to generate additional momentum for the Company. In the second half of 2006, we will launch a number of compelling new products in our writing instrument and accessory segment including several million dollars of Cross branded line extensions. Additionally, we will invest in new products and expanded distribution for Costa Del Mar as that brand accelerates through the year.”

Six-Month Results

Net sales in the first half of 2006 were $62.1 million compared to $58.6 million in 2005. Global writing instrument and accessory revenue was $47.2 million, down 1.7%, compared to $48.0 million in the same period last year. Costa Del Mar’s net sales increased 40.3% to $14.9 million compared to $10.6 million in the first six months of 2005.

Net income for the year to date was $280,000, or $0.02 per share, compared to a net loss of $971,000 or $0.07 per share, last year.

Cash flow from operating activities was approximately $7,000,000 during the current six-month period.

Mr. Whalen concluded, “Cross has delivered a successful first half performance. We are well positioned as we move into the peak season for our writing instrument and accessory business and expect to deliver improved second half and full year results.”

Conference Call

The Company’s management will host a conference call tomorrow, July 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 July 27, 2006 through August 3, 2006 at 1-877-519-4471 or 973-341-3080, pin number 7644943.

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 web site at www.cross.com and the Costa Del Mar website at www.costadelmar.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 Company’s direct to consumer initiatives, including direct mail catalogs, the Company’s shop-in-shop initiative, the Company’s new merchandising and branding efforts, the impact of new writing instrument products, and the anticipated continued performance of Costa Del Mar). 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 uncertainty of foreign markets, consumers’ and retailers’ reaction to the Company’s existing and new writing instrument products, retailers’ support for the Company’s merchandising initiatives, the continued expansion of Costa Del Mar, and the potential impact of increasing energy prices, 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 26, 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/Rachel Albert
212-850-5600

Download a spreadsheet with 2006 Second Quarter Results