Crown Crafts, Inc. Reports First Quarter 2005 Results GONZALES, La., Aug. 11 /PRNewswire-FirstCall/ -- Crown Crafts, Inc. (OTC:CRWS) (BULLETIN BOARD: CRWS) (the "Company") today reported net sales for the first quarter of fiscal year 2005, which ended June 27, 2004, of $16.9 million compared to $18.5 million for the first quarter of fiscal year 2004. Net loss for the quarter was $102,000, or $0.01 per diluted share, compared to a net loss of $114,000, or $0.01 per diluted share, for the first quarter of fiscal year 2004. The Company attributes the decline in sales to the direct to retail shift in the Company's Classic Pooh license and a decrease in bib, bath and bedding sales resulting from reduced buying by customers anticipating new programs. "Historically, the first quarter is our weakest and this year is no exception," commented E. Randall Chestnut, Chairman, President and Chief Executive Officer of the Company. "We are pleased that we were able to maintain a relatively flat net loss as compared to last year despite an 8.4% decrease in sales and a shift in our product mix that contributed to a decline in our gross margin," Mr. Chestnut continued. The Company will host a teleconference today at 1:00 p.m. Central Daylight Time to discuss the Company's results and answer appropriate questions from stockholders. Interested investors may join the teleconference by dialing (888) 428-4480. Please refer to confirmation number 741059. The teleconference can also be accessed in listen-only mode by visiting the Company's website at http://www.crowncrafts.com/ . The financial information to be discussed during the teleconference may be found prior to the call on the investor relations portion of the Company's website. A telephone replay of the teleconference will be available from 4:30 p.m. Central Daylight Time on August 11, 2004 through 11:59 p.m. Central Daylight Time on August 18, 2004. To access the replay, dial (800) 475-6701 in the United States or (320) 365-3844 from international locations. The access code for the replay is 741059. Crown Crafts, Inc. designs, markets and distributes infant and juvenile consumer products, including bedding, blankets, bibs, bath and accessories and luxury hand-woven home decor. Its subsidiaries include Hamco, Inc. in Louisiana, Crown Crafts Infant Products, Inc. in California and Churchill Weavers, Inc. in Kentucky. Crown Crafts is America's largest producer of infant bedding, bibs and bath items. The Company's products include licensed and branded collections as well as exclusive private label programs for certain of its customers. Statements contained in this release that are not statements of historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "intend," "will" and similar expressions are examples of words that identify forward-looking statements. Forward-looking statements involve unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, changing competition, the level and pricing of future orders from the Company's customers, the Company's dependence on third-party suppliers, including some located in foreign countries with unstable political situations, the Company's ability to successfully implement new information technologies and the Company's dependence on licenses from third parties. CONSOLIDATED STATEMENTS OF OPERATIONS SELECTED FINANCIAL DATA In thousands, except per share data Three Months Ended June 27, 2004 June 29, 2003 Net sales $16,908 $18,465 Gross profit 3,474 4,161 Gross margin 20.5% 22.5% Income from operations 852 1,000 Net (loss) (102) (114) Basic (loss) per share (0.01) (0.01) Diluted (loss) per share (0.01) (0.01) Weighted Average Shares Outstanding: Basic 9,505 9,427 Diluted 9,505 9,427 CONSOLIDATED BALANCE SHEETS SELECTED FINANCIAL DATA In thousands June 27, 2004 March 28, 2004 Accounts receivable, net of allowances $9,715 $17,221 Inventories, net of reserves 19,199 14,394 Total current assets 32,579 33,338 Goodwill 22,974 22,974 Total assets 57,543 58,387 Current maturities of long-term debt 3,016 3,016 Total current liabilities 12,597 11,503 Long-term debt 26,611 28,447 Total non-current liabilities 26,611 28,447 Stockholders' equity 18,335 18,437 Total liabilities and stockholders' equity 57,543 58,387 DATASOURCE: Crown Crafts, Inc. CONTACT: Investor Relations Department of Crown Crafts, Inc., +1-225-647-9146; or Halliburton Investor Relations, +1-972-458-8000, for Crown Crafts, Inc. Web site: http://www.crowncrafts.com/

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