Boyds Collection Emerges from Chapter 11; Concludes Reorganization on Schedule and Emerges as a Private Company.

GETTYSBURG, Pa. -- The Boyds Collection, Ltd., a leading designer and manufacturer of unique, whimsical and "Folksy With Attitude(SM)" gifts and collectibles, today announced that it has emerged from the Chapter 11 reorganization process. The Company concluded its reorganization today after completing all required actions and satisfying all remaining conditions to its Plan of Reorganization. The Plan was confirmed by the United States Bankruptcy Court for the District of Maryland by order entered on June 13, 2006. Boyds is emerging from Chapter 11 as a privately held Company.

"We are pleased to have completed this process and emerge from Chapter 11 having accomplished all of our major goals. Boyds is emerging as a financially stable company, and with this solid foundation will be able to move forward as a viable business poised for growth. We have secured $11 in exit financing, which will provide the necessary assurance to our customer base that we are financially sound," said Jan Murley, chief executive officer and director. "We were able to complete this process on schedule due to the overwhelming support of all our creditors and interest holders."

As previously announced, as part of the emergence from Chapter 11, Ms. Murley is leaving Boyds to pursue other interests. Robert Coccoluto, who served as President and CFO of Boyds between 1998 and 2000, will act as CEO following Ms. Murley's departure and Peter Frost will assume the responsibilities as Chief Operating Officer. Michael A. Prager, who is Boyds' Group Vice President, Wholesale, has assumed the position of President, effective May 25, 2006.

"Boyds has emerged as a much more competitive Company," said Robert Coccoluto, incoming chief executive officer. "Now that we have taken the first steps of restructuring, I look forward to working with our employees, collectors, customers, and business partners to stabilize and grow our business."

In connection with its Chapter 11 cases, Boyds has been represented by Houlihan Lokey Howard & Zukin Capital, Inc. as financial advisors and Kirkland & Ellis LLP as legal advisors. The Official Committee of Unsecured Creditors have been represented by as FTI Consulting as financial advisors and by Paul Weiss Rifkand, Wharton and Garrison LLP as legal advisors.

About The Boyds Collection, Ltd.

The Boyds Collection, Ltd. is a leading designer and manufacturer of unique, whimsical and "Folksy with Attitude(SM)" gifts and collectibles, known for their high quality and affordable pricing. The Company sells its products through a large network of retailers, as well as at Boyds Bear Country(TM) in Gettysburg, Pennsylvania and Pigeon Forge, Tennessee - "The world's most humongous teddy bear store." Founded in 1979, the Company was acquired by Kohlberg Kravis Roberts & Co. (KKR) in 1998. Information about Boyds can be found at www.boydsstuff.com

Cautionary Statement Regarding Forward-Looking Information

Any conclusions or expectations drawn from the statements in this press release concerning matters that are not historical corporate financial results are "forward-looking statements" that involve risks and uncertainties. Sales patterns have historically varied in number, mix and timing, and there can be no assurance that the sales estimates will be accurate or that the sales trend year-to-date will continue. Other factors, including retail inventory levels, consumer demand, product development efforts, completion of third party product manufacturing, dealer reorders and order cancellations, control of operating expenses, corporate cash flow application, and the industry, general economic, regulatory and international trade conditions, can significantly impact the Company's estimated and actual sales and earnings. Actual results may vary materially from estimates and other forward-looking statements and the assumptions on which they are based. The Company undertakes no obligation to update or publish in the future any forward-looking statements.