CML Announces Operational Restructuring of Its NordicTrack Subsidiary.

ACTON, Mass.--(BUSINESS WIRE)--Oct. 14, 1998--CML Group, Inc. (NYSE:CML) today announced an operational restructuring of the Company's NordicTrack subsidiary. The action reflects the Company's decision earlier this year to reposition NordicTrack as a specialty retailer of high-quality fitness and exercise equipment, and to exit certain unprofitable distribution channels including direct response television advertising, telemarketing and catalog sales.

Under the operational restructuring, NordicTrack is realigning its organization to reduce costs and better reflect effective practices in specialty retailing. NordicTrack plans to reduce its work force by up to 300, or approximately 25 percent, to approximately 1,200 full-time-equivalent employees. Most of the affected employees are based at NordicTrack's headquarters in Chaska, Minnesota and distribution center in Glencoe, Minnesota. The restructuring extends to all levels of the NordicTrack organization and includes elimination of seven of NordicTrack's fifteen officer-level positions.

In addition, NordicTrack announced the appointment of a new Chief Financial Officer, Michael Koppel. Mr. Koppel comes to NordicTrack after serving as Chief Financial Officer at Lids Corp., a specialty retailer of headgear, where he oversaw finance, logistics, and MIS during a period of rapid store growth. Previously Mr. Koppel was Vice President and Controller of Filene's, a division of The May Department Stores.

As previously indicated, CML is currently nearing completion of a comprehensive strategic, operational and financial review of all aspects of its business. CML expects to announce the results of that review process in the near future. The Company will announce its financial results for the fourth quarter and fiscal year ended July 31, 1998, on or before October 29.

CML is a marketer of products for consumers that enhance healthy, active lifestyles. Its products are sold under the trade names Smith & Hawken, NordicTrack and Nordic Advantage.

This news release contains forward-looking statements relating to the Company's future strategic prospects and opportunities, and such statements involve risks and uncertainties. In addition to the risk factors referred to in the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 1997, factors which may affect the Company's future operating results include: the market's response to the Company's new and existing products; the impact of competition in the Company's marketplace; the ability of the Company to successfully manage its marketing channels, including its wholesale channel; the Company's continuing efforts to reduce costs; the Company's ability to successfully execute the NordicTrack restructuring plan; the Company's ability to successfully introduce new NordicTrack product lines; the availability of capital resources; and delays in the introduction of new products.