A.T. Cross Company Reports Strong Second Quarter Results

Net Sales increase 18.5%

Income Increases 71% to $3.2 million

EPS doubles
LINCOLN, R.I.--(Business Wire)--
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

The Company's management will host a conference call today, July
23, 2008 at 4:30 PM Eastern Time. Parties interested in participating
in the conference call may dial-in at (888) 599-8693, while
international callers may dial-in at (913) 312-1294. A live webcast of
the call will be accessible on the Company's website at www.cross.com
or www.viavid.net. The webcast will be archived for 30 days on these
sites, while a telephone replay of the call will be available
beginning at 7:30 PM Eastern Time on July 23, 2008 through July 30,
2008 at (888) 203-1112 or (719) 457-0820 for international callers,
and entering the pass code of 3179364.

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, the Costa
Del Mar website at www.costadelmar.com 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.

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*T
A. T. CROSS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)

Three Months Ended Six Months Ended
------------------ -----------------
June 28, June 30, June 28, June 30,
2008 2007 2008 2007

Net sales $43,208 $36,476 $79,465 $69,048
Cost of goods sold 18,835 16,022 35,121 30,222
-------- -------- -------- --------
Gross Profit 24,373 20,454 44,344 38,826
Selling, general and
administrative expenses 18,664 16,462 35,398 32,341
Service and distribution costs 1,867 1,335 3,518 2,789
Research and development expenses 639 636 1,212 1,235
Restructuring charges - 143 - 295
-------- -------- -------- --------
Operating Income 3,203 1,878 4,216 2,166
Interest and other expense (322) (226) (369) (266)
-------- -------- -------- --------
Income Before Income Taxes 2,881 1,652 3,847 1,900
Income tax provision 1,008 662 1,372 787
-------- -------- -------- --------
Net Income $ 1,873 $ 990 $ 2,475 $ 1,113
======== ======== ======== ========

Net Income per Share:
Basic $ 0.12 $ 0.07 $ 0.16 $ 0.07
======== ======== ======== ========
Diluted $ 0.12 $ 0.06 $ 0.16 $ 0.07
======== ======== ======== ========

Weighted Average Shares
Outstanding:
Basic 14,987 14,940 15,043 14,848
======== ======== ======== ========
Diluted 15,383 15,532 15,426 15,409
======== ======== ======== ========

Three Months Ended Six Months Ended
------------------ -----------------
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
Segment Data: Cross Accessory
Division
Net Sales $25,895 $23,906 $52,424 $48,599
Operating Loss (1,289) (1,343) (1,306) (1,710)

Segment Data: Cross Optical Group
Net Sales $17,313 $12,570 $27,041 $20,449
Operating Income 4,492 3,221 5,522 3,876
*T

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A. T. CROSS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)

June 28, 2008 June 30, 2007
------------- -------------
Assets
Cash and cash equivalents $ 14,424 $ 13,808
Accounts receivable 30,260 24,091
Inventories 31,077 33,367
Deferred income taxes 5,245 5,095
Other current assets 8,147 5,284
------------- -------------
Total Current Assets 89,153 81,645

Property, plant and equipment, net 17,349 14,492
Goodwill 17,209 7,288
Intangibles and other assets 13,663 5,455
Deferred income taxes 8,444 8,748

------------- -------------
Total Assets $ 145,818 $ 117,628
============= =============

Liabilities and Shareholders' Equity
Accounts payable and other current
liabilities $ 22,548 $ 20,451
Retirement plan obligations 2,297 2,178
------------- -------------
Total Current Liabilities 24,845 22,629

Long-term debt 21,721 3,487
Retirement plan obligations 4,551 7,205
Deferred gain on sale of real estate 4,041 4,562
Other long term liabilities 3,340 2,829
Accrued warranty costs 1,343 1,308
Shareholders' equity 85,977 75,608

------------- -------------
Total Liabilities and Shareholders'
Equity $ 145,818 $ 117,628
============= =============
*T

A.T. Cross Company
Kevin F. Mahoney, 401-335-8470
Vice President, Finance and
Chief Financial Officer
kmahoney@cross.com
or
Integrated Corporate Relations
James Palczynski, 203-682-8229

Copyright Business Wire 2008