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                                                                    EXHIBIT 99.2


                        CAUTIONARY STATEMENT FOR PURPOSES
                     OF THE "SAFE HARBOR" PROVISIONS OF THE
                PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

From time to time, Cyrk, Inc. (the "Company") may provide forward-looking
information such as forecasts of expected future performance or statements about
the Company's plans and objectives. This information may be contained in filings
with the Securities and Exchange Commission, press releases or oral statements
by the officers of the Company. The Company desires to take advantage of the new
"Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995
and is including this Exhibit 99.2 in its Form 10-K in order to do so.

The Company wishes to caution readers that the following important factors,
among others, in some cases have affected, and in the future could affect, the
Company's actual results and could cause the Company's actual consolidated
results for the Company's current quarter and beyond to differ materially from
those expressed in any forward-looking statements made by, or on behalf of, the
Company.

DEPENDENCE ON PRINCIPAL CUSTOMERS

In recent years, the Company's business has been heavily dependent on purchases
of promotional products by certain key customers including, but not limited to,
Philip Morris Incorporated ("Philip Morris") and the Pepsi-Cola Company
("Pepsi"). The loss of either of these customers or a significant reduction in
their level of purchases from the Company without an offsetting increase in
purchases by new or other existing customers would have a material adverse
effect on the Company's business and results of operations.

LIMITED CUSTOMER COMMITMENTS

As is generally the case with its other promotional product customers, the
Company's agreements with Philip Morris and Pepsi do not require them to make a
certain level of purchases. Instead, purchase commitments are represented by
purchase orders placed by the customers from time to time during the course of a
promotion. The actual level of purchases by Philip Morris and Pepsi (and other
promotional product customers) depends on a number of factors, including the
duration of the promotion and consumer redemption rates. Purchase orders are
generally subject to cancellation with limited penalty; however, the Company
believes the imposition of this penalty may not preclude cancellations.
Furthermore, if a promotional program does not achieve the customer's marketing
objectives, the customer may seek modifications of its agreement with the
Company. Consequently, the Company's level of net sales is difficult to predict
accurately and can fluctuate greatly from quarter to quarter.

COMPETITION

Philip Morris and certain other customers seek competitive bids for their
promotional programs. The Company's profit margin depends, to a great extent, on
its competitive position when bidding and its ability to continually lower its
product costs after being awarded bids. Increased competition is expected to
continue and thus adversely impact the Company's profit margin in the future.

EFFECT OF INDUSTRY CONDITIONS FACING THE COMPANY'S CUSTOMERS

The Company's business is heavily dependent on the promotional budgets of its
customers, which in turn are influenced by industry conditions and other
factors. Accordingly, industry conditions faced by Philip Morris in particular
and conditions in the tobacco industry in general are expected to impact the
Company's business. There can be no assurance that these conditions will not
lead to a reduction in advertising and promotional spending by Philip Morris, or
that Philip Morris will not change its advertising and promotional strategy in a
manner that reduces the use of promotional programs such as the Marlboro
Adventure Team, Country Store and Unlimited promotions. A significant reduction
in spending by Philip Morris on promotional product programs would have a
material adverse effect on the Company's business and results of operations.
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Significantly, the United States Food and Drug Administration (the "FDA") has
issued final regulations with respect to tobacco products. Such regulations,
among other things, ban (i) gifts based on proof of purchase of tobacco products
or redeemable coupons, (ii) the use of tobacco brand names or any other indices
of tobacco brand identification on non-tobacco products (e.g. T-shirts, hats,
other clothing, gym bags and trinkets) and (iii) brand-name sponsorship of
sporting events, concerts and other events. These regulations are scheduled to
become effective on August 28, 1997, except for the ban on brand-name
sponsorship, which becomes effective August 28, 1998. These regulations could
have a material and adverse effect on the Company's sales to Philip Morris,
which in turn could have a material adverse effect on the Company's business and
results of operations.

PROMOTIONAL PRODUCT DEMAND

The Company's business is driven by spending by companies to promote their
corporate identities and brand name products. If the demand for brand name
products diminishes or if companies decrease their use of promotional product
programs to promote their corporate identities and brands, the Company's
business could be materially and adversely affected. In addition, the Company's
relationship with certain of its promotional products customers has been limited
to the sourcing of products being offered or sold by the customer in connection
with a single promotional program. There can be no assurance that such customers
will continue to use the Company to source products for future promotional
programs.

DEPENDENCE ON FOREIGN MANUFACTURING

The majority of the Company's net sales in recent years were attributable to
products manufactured by subcontractors located in Asia. The Company has no
long-term contracts with these manufacturing sources and competes with other
companies for production facilities and import quota capacity. In addition, most
Asian manufacturers require that a letter of credit be posted at the time a
purchase order is placed. There can be no assurance that the Company will
continue to have the necessary credit facilities for the purpose of posting such
letters of credit. The Company's business is subject to the risks normally
associated with conducting business abroad, such as foreign government
regulations, political unrest, disruptions or delays in shipments, fluctuations
in foreign currency exchange rates and changes in economic conditions in
countries in which the Company's manufacturing sources are located. If any such
factors were to render the conduct of business in a particular country
undesirable or impractical, or if the Company's current foreign manufacturing
sources were to cease doing business with the Company for any reason, the
Company's business and operating results could be adversely affected.

IMPORTS AND IMPORT RESTRICTIONS

The importation of products manufactured in Asia is subject to the constraints
imposed by bilateral agreements between the United States and substantially all
of the countries from which the Company imports goods. These agreements impose
quotas that limit the quantity of certain types of goods, including textile
products imported by the Company, which can be imported into the United States
from those countries. Such agreements also allow the United States to impose,
under certain conditions, restraints on the importation of categories of
merchandise that, under the terms of the agreements, are not subject to
specified limits.

The Company's continued ability to source products that it imports may be
adversely affected by additional bilateral and multilateral agreements,
unilateral trade restrictions, significant decreases in import quotas, the
disruption of trade from exporting countries as a result of political
instability or the imposition of additional duties, taxes and other charges or
restrictions on imports.

Products imported by the Company from China currently receive the same
preferential tariff treatment accorded goods from countries granted "most
favored nation" status. However, the renewal of China's most favored nation
treatment has been a contentious political issue for several years and there can
be no assurance that such status will be continued. If China were to lose its
most favored nation status, goods imported from China will be subject to

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significantly higher duty rates which would increase the cost of goods from
China. Any such increase could have a material adverse effect on the Company's
business.

DEPENDENCE ON KEY PERSONNEL

The Company is dependent on several key personnel, including Gregory P. Shlopak,
Chairman of the Board and Chief Executive Officer, and Patrick D. Brady,
President and Chief Operating Officer. The loss of the services of either one of
them could have a material adverse effect on the Company. Neither Mr. Shlopak
nor Mr. Brady is subject to an employment contract with the Company. The
Company's continued success is also dependent upon its ability to retain and
attract skilled design, marketing and management personnel.

ACQUISITIONS AND STRATEGIC ALLIANCES

The Company expects to make acquisitions of other businesses which are
complementary to the Company's business or to enter into strategic alliances
with such businesses. There can be no assurance that such strategic alliances,
or any future acquisition or strategic alliance, will be completed or, if
completed, will result in long-term benefits to the Company. Further, if the
Company is not successful in its acquisition or strategic alliance endeavors,
the Company's operating results in future periods may be adversely affected.

LITIGATION

A lack of success, or associated costs, in defending pending and potential
litigation involving the Company could adversely affect the Company's operating
results. Specifically, the Company has been named as a defendant in a putative
class action filed on October 18, 1995 in the United States District Court for
the Southern District of New York (Barry Hallet, Jr. v. Li & Fung et al., Docket
No. 95 Civ. 8917) in which the plaintiff alleges that, in violation of the
securities laws, the Company and its officers made false and misleading
statements concerning the Company's business which artificially inflated the
price of the Company's stock.

INTERNATIONAL EXPANSION

The Company continues to expand its international sales development activity on
a worldwide basis. The Company has limited prior experience in international
sales and there is no assurance that the Company's efforts will be successful.