Blyth, Inc. Announces Restructuring

Blyth, Inc. today during its third quarter fiscal year 2002 earnings teleconference commented on its outlook for the fourth quarter of fiscal 2002. Based on management’s expectations at this time, the company anticipates reporting several restructuring and other one-time events when it announces fourth quarter results on March 14, 2002. These efforts are expected to impact Blyth’s fourth quarter earnings by approximately $12-$15 million pre-tax, resulting in earnings per share charges of $.16-$.20.

The company noted that two-thirds of these anticipated charges, or $8-$10 million, relate to the closure of its 62nd Street Chicago facility due to overall manufacturing over-capacity. These costs largely reflect the asset write-off of facilities and equipment, and severance. An additional $4-$5 million in anticipated charges relate primarily to other rationalization within Blyth’s U.S. consumer wholesale businesses. This includes lease write-offs, as well as other one-time costs, most of which relate to the market slowdown in the mass channel, as well as costs associated with discontinued product lines.

“These charges reflect the need for Blyth, like any successful company, to recognize and react to the changing economies and requirements of the marketplace,” said Robert B. Goergen, chairman and CEO. “The decision to close a facility is a difficult one. Last year, we divested ourselves of citronella candles, which were made in our Chicago location. This, combined with the substantial changes that have taken place in recent months in the mass market, resulted in significant over-capacity and necessitated a prompt response.”

Blyth, Inc., headquartered in Greenwich, Conn., designs, manufactures and markets an extensive line of candles and home fragrance products including scented candles, potpourri and other fragranced products and markets a broad range of related candle accessories. Net sales for the 12 months ended Oct. 31, 2001 totaled $ 1,163.0 million.