Cross Revises 2002 Guidance Due to Soft Holiday Sales.

Business Editors

LINCOLN, R.I.--(BUSINESS WIRE)--Dec. 16, 2002

A.T. Cross Company (AMEX:ATX) today revised its sales and earnings guidance for 2002 to reflect lower than expected sales to its U.S. national account customers.

The Company now expects 2002 revenue to be down approximately 5%, which is below the previous expectation of slight sales growth. 2002 earnings per share are now expected to be $.20 -$.25 per share. Prior guidance anticipated 2002 earnings of $.40-$.45 per share.

"The fourth quarter is our most significant of the year," said David G. Whalen, President and Chief Executive Officer of A.T. Cross. "While sales from other key segments of the business including Europe and Asia will be up, a large reduction in sales to our U.S. office superstore national accounts will more than offset the progress made in the other areas. As a result, the earnings leverage that we had hoped to gain from an increase in revenue this quarter will not occur and our earnings will be below expectations."

Mr. Whalen continued, "There are two reasons that our sales within our national accounts are not what we anticipated. First, we projected a greater surge in consumer holiday spending than has occurred. Second, this year, unlike in past years, our national accounts have not been aggressive in promoting our category or Cross products with off shelf holiday gift displays. Less inventory on the floor during our peak season has meant fewer sales."

Mr. Whalen concluded, "The shortfall in our national accounts business was unexpected. In a difficult economic environment, our strategy remains to attract consumers to the Cross brand by bringing innovative new products to the market and properly merchandising them at key retail locations. We are confident that this strategy is correct and will, in 2003, restore growth to the business."

A.T. Cross Company is a leading designer, manufacturer and marketer of fine writing instruments with distribution in major markets around the world. The Company also designs and markets timepieces and manufactures pen computing products.

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 related to the Company's fourth quarter and year end expected sales and earnings and expected growth in 2003). 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 risks associated with the anticipated economic recovery, consumer acceptance of products and programs, and finalizing reported sales and earnings. Actual results could differ materially from those expressed or implied in the forward-looking statements. The information contained in this document is as of December 16, 2002. The Company assumes no obligation to update any forward-looking statements contained in this document as a result of new information, 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.