Exhibit 99.1





LENOX GROUP REPORTS FOURTH QUARTER AND

FULL YEAR 2006 RESULTS



EDEN PRAIRIE, Minn., March 15, 2007 --Lenox Group Inc. (NYSE:LNX), a leading collectible, tabletop and giftware company, today reported financial results for its fourth quarter and year ended December 30, 2006. It also announced that its Annual Report on Form 10-K for that year was filed today with the Securities and Exchange Commission.



Revenues for the fourth quarter were $159.1 million compared to $176.1 million in the prior year. For the full fiscal year, revenues increased from $331.7 million to $502.5 million, primarily as a result of the full year impact of the Companys acquisition of Lenox Incorporated, effective as of September 1, 2005 (the Acquisition).



For the fourth quarter, loss from continuing operations was $6.4 million, or 46 cents per share, compared with income from continuing operations of $3.6 million, or 26 cents per share in the fourth quarter of 2005. Including results from the Companys discontinued Time to Celebrate party plan business, which was exited in the fourth quarter of 2005 and therefore reclassified as discontinued operations, net income was $2.6 million, or 19 cents per share for the fourth quarter of 2005. All earnings per share figures refer to diluted earnings per share.



For the full year in 2006, loss from continuing operations was $49.3 million in 2006 or $3.58 per share, compared to income from continuing operations of $17.4 million or $1.26 per share in 2005. Loss from continuing operations in 2006 included goodwill impairment charges of $53.9 million, net of tax, trademark impairment charges of $2.3 million, net of tax, pension curtailment and settlement gains of $9.2 million, net of tax, a gain of $0.7 million, net of tax, on the sale of the Companys Pomona facility for net proceeds of $6.6 million, the reversal of a $1.5 million deferred tax asset valuation allowance and $0.6 million of tax expense related to the revaluation of net deferred tax assets as a result of a lower effective tax rate due to a legal entity restructuring needed to integrate the Lenox and Department 56 businesses.



In the fourth quarter, the Company recognized a goodwill impairment charge of $18.2 million, net of tax, as a result of lower projected sales and profits from the Companys Lenox wholesale reporting unit as compared to that which was originally projected at the date of the Acquisition. This goodwill impairment related to the goodwill originally recorded as part of the Acquisition on September 1, 2005. The Company also recognized a trademark impairment charge of $2.3 million, net of tax, related to lower than projected sales of Dansk and Gorham product from that estimated at the time of the original purchase price allocation. These trademark costs were also originally recorded as part of the Acquisition.





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LENOX GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2006 EARNINGS. . ./2



In the fourth quarter, the Company announced the
freezing of its defined benefit pension plans. No future benefits will accrue under the pension plans, but pension
benefits earned through December 31, 2006 will be available to legacy Lenox employees when they retire under the terms of the
plan. As a result of this decision, the Company recognized a pension curtailment gain of $8.2 million, net of tax. Also, in the
fourth quarter, the Company recorded a plan settlement gain of $1.0 million, net of tax, as a result of significant lump-sum cash
payments made to employees from one of its defined benefit pension plans.



Also in the fourth quarter, the Company reversed a
$1.5 million deferred tax asset valuation allowance that it believed was no longer needed because the capital gains generated from
the assets sold in 2006 will be used to offset previously recorded capital losses. Finally, in 2006, the Company restructured its
legal entities to lower its effective tax rate in the future. As a result, the Company revalued its net deferred tax assets, which
resulted in an additional $0.6 million of tax expense.



Excluding the impact of the goodwill and trademark
impairment charges, the pension curtailment and settlement gains, the gain on the sale of the Pomona manufacturing facility, the
reversal of the deferred tax valuation allowance and the additional tax expense from the revaluation of deferred tax assets from
the 2006 results, loss from continuing operations was $3.9 million in 2006, or $0.28 per share, compared to income from continuing
operations of $17.4 million, or $1.26 per share, in 2005. While the Company made progress in reducing costs in 2006, the Lenox
results from operations were lower than originally projected at the time of the Acquisition due to sourcing and delivery problems
that delayed the shipment of product, lower sales from the Companys largest customer due to the customers
consolidation of acquired entities, the continued decline of fine china and the trend to casual product, higher manufacturing
variances, and higher levels of excess inventory.



The change from income of $17.4 million from
continuing operations in 2005 to a loss from continuing operations of $3.9 million in 2006, representing a decline of $21.3
million, was principally due to the seasonality of the acquired Lenox business and the timing of the Acquisition, higher interest
expense related to the Acquisition, and the continued contraction of the legacy Department 56 business.



Performance from Continuing Operations by
Business Segment



Wholesale.Fourth
quarter net sales in the Wholesale segment were $89.9 million, increasing from $85.0 million in the prior year period. The
increase was principally due to an increase in wholesale shipments due to the timing of receipt of product from overseas vendors.
Because of delays in receiving product from overseas manufacturers in the first two quarters of fiscal 2006, the Company shipped
proportionately more product in the third and fourth quarters of 2006 compared to 2005.



For the full year, segment net sales increased 52%
to $330.4 million from $217.0 million in 2005, reflecting the timing impact of the Acquisition. In 2006, the Company had twelve
months of Lenox activity compared to only four months of activity in 2005. Partially offsetting the increase in Lenox product
sales was the decrease in legacy Department 56 product sales. Net sales of Department 56 product decreased 8% or $9.8 million
principally due to the continued contraction experienced in the gift and specialty channel since 1999. Excluding the incremental
sales recorded as a result of the Willitts acquisition (completed in the second quarter of 2006), net sales of Department 56
product decreased 14%, or $18.1 million.



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LENOX GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2006 EARNINGS. . ./3



For the fourth quarter of 2006, income from
continuing operations decreased from $17.2 million in 2005 to $4.1 million, due primarily to the goodwill impairment charges of
$18.2 million recognized during the fourth quarter of 2006. For the full year, income from operations decreased $26.0 million, or
40%, from $64.3 million in 2005 to $38.3 million in 2006. The decrease was principally due to $55.3 million ($53.9 million, net of
taxes) in goodwill impairment charges, partially offset by the increase in net sales and income from operations due to the timing
of the Acquisition as explained above.



Retail.Fourth quarter
net sales for the Retail segmentdecreased approximately 46%, from $58.0 million in
2005 to $31.3 million in 2006, primarily due to the effect of the planned closure of 28 Lenox retail stores in the first quarter
of fiscal 2006. Net segment sales for the full year in 2006 were flat compared to the prior year ($72.4 million, compared to $72.8
million in the prior year), primarily due to the timing of the Acquisition as explained above.



Same-store sales (including stores added as a
result of the Acquisition and compared against pre-acquisition results) decreased 7.7 percent for the quarter. On a full year
basis, same-store sales decreased 4.0% from 2005 to 2006. Net sales from go forward stores increased from 2005 to 2006
as a result of reflecting twelve months of sales in 2006 compared to four months of sales in 2005.



Income from continuing operations decreased in the
fourth quarter, from $17.5 million to $6.2 million, and decreased on a full year basis by $11.6 million from $19.3 million in 2005
to $7.7 million in 2006. The decreases for the full year were principally due to higher selling expenses as a result of the timing
of the Acquisition as explained above.



Direct.Net sales in the
Direct segment increased in the fourth quarter of 2006 by approximately 15% to $37.2 million, from $32.4 million in the fourth
quarter of 2005. The increase was primarily due to higher Internet sales as a result of higher website traffic and higher direct
mail sales due to the continued success of jewelry promotions. Net sales increased by $56.9 million, or 138%, from $41.1 million
in 2005 to $98.0 million in 2006, principally due to the timing of the Acquisition.



Income from continuing operations increased from
$7.1 million to $10.2 million in the fourth quarter of 2006, compared to the prior year period, due to the higher sales amounts
explained above, and from $8.6 million in the full year of 2005 to $19.6 million in 2006, principally due to the timing of the
Acquisition, as explained above.



Guidance



Due to the Companys recent management changes
and focus on an updated business plan designed to improve stockholder returns, the Company has decided to discontinue its practice
of providing guidance and holding conference calls to discuss its quarterly results for the foreseeable future.







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LENOX GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2006 EARNINGS. . ./4



About Lenox Group Inc.



Lenox Group Inc. is a market leader in quality
tabletop, collectible and giftware products sold under the Department 56, Lenox, Dansk and Gorham brand names. The company sells
its products through wholesale customers who operate gift, specialty and department stores in the United States and Canada,
company-operated retail stores, and direct-to-the-consumer through catalogs, direct mail, and the Internet.



Forward-looking statements



This release contains forward-looking statements
about the Companys performance. These statements are based on managements estimates, assumptions and projections as of
today and are not guarantees of future performance. Any conclusions or expectations expressed in, or drawn from, the statements in
this press release concerning matters that are not historical corporate financial results are forward-looking statements that
involve risks and uncertainties. Such risk and uncertainties that could affect performance include, but are not limited to, the
ability of Lenox Group Inc. to: (1) integrate certain Lenox and Department 56 operations ; (2) achieve revenue or cost synergies;
(3) generate cash flow to pay off outstanding debt under its credit facilities; (4) remain in compliance with the terms of its
amended credit facilities; (5) negotiate successfully on or before April 30, 2007 amendments to its existing credit facilities,
or, in the alternative, new credit agreements with other lenders; (6) successfully complete its operational improvements,
including improving inventory management and making the supply chain more efficient; (7) retain key employees; (8) maintain and
develop cost effective relationships with foreign manufacturing sources; (9) maintain the confidence of and service effectively
key wholesale customers; (10) manage currency exchange risk and interest rate changes on the Companys variable debt; (11)
identify, hire and retain quality designers, sculptors and artistic talent to design and develop products which appeal to changing
consumer preferences; and (12) manage litigation risk in a cost effective manner. Actual results may vary materially from
forward-looking statements and the assumptions on which they are based. The Company undertakes no obligation to update or publish
in the future any forward-looking statements. Also, please read the bases, assumptions and factors set out in Item 1A in the
Companys Form 10-K for 2006 dated March 15, 2007 and filed under the Securities Exchange Act of 1934, all of which is
incorporated herein by reference and applicable to the forward-looking statements set forth herein.



Contact:



Timothy J. Schugel

Lenox Group Inc.

Tel: 952-944-5600









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LENOX GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)



Quarter Ended
        
        
        
        52 Weeks EndedDecember 30,2006
        
        
        
        December 31,2005
        
        
        
        December 30,2006
        
        
        
        December 31,2005NET SALES
        
        $
        159,065
        
        
        
        $
        176,143
        
        
        
        $
        502,506
        
        
        
        $
        331,728COST OF SALES
        
        
        85,017
        
        53.4%
        
        
        94,140
        
        53.4%
        
        
        257,932
        
        51.3%
        
        
        172,845
        
        52.1%Gross Profit
        
        
        74,048
        
        46.6%
        
        
        82,003
        
        46.6%
        
        
        244,574
        
        48.7%
        
        
        158,883
        
        47.9%Selling, general and administrative expenses
        
        
        63,569
        
        40.0%
        
        
        72,056
        
        40.9%
        
        
        234,676
        
        46.7%
        
        
        126,394
        
        38.1%Pension curtailment & settlement gains
        
        
        (14,783
        )
        -9.3%
        
        
        
        
        0.0%
        
        
        (14,783
        )
        -2.9%
        
        
        
        
        0.0%Goodwill impairment
        
        
        18,195
        
        11.4%
        
        
        
        
        0.0%
        
        
        55,269
        
        11.0%
        
        
        
        
        0.0%Trademark impairment
        
        
        3,743
        
        2.4%
        
        
        
        
        0.0%
        
        
        3,743
        
        0.7%
        
        
        
        
        0.0%OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS
        
        
        3,324
        
        2.1%
        
        
        9,947
        
        5.6%
        
        
        (34,331
        )
        -6.8%
        
        
        32,489
        
        9.8%Interest expense
        
        
        4,887
        
        3.1%
        
        
        3,998
        
        2.3%
        
        
        16,697
        
        3.3%
        
        
        5,735
        
        1.7%Other, net
        
        
        110
        
        0.1%
        
        
        2
        
        0.0%
        
        
        35
        
        0.0%
        
        
        (744
        )
        -0.2%INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
        
        
        (1,673
        )
        -1.1%
        
        
        5,947
        
        3.4%
        
        
        (51,063
        )
        -10.2%
        
        
        27,498
        
        8.3%PROVISION (BENEFIT) FOR INCOME TAX
        
        
        4,713
        
        3.0%
        
        
        2,312
        
        1.3%
        
        
        (1,795
        )
        -0.4%
        
        
        10,146
        
        3.1%INCOME (LOSS) FROM CONTINUING OPERATIONS
        
        
        (6,386
        )
        -4.0%
        
        
        3,635
        
        2.1%
        
        
        (49,268
        )
        -9.8%
        
        
        17,352
        
        5.2%LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
        
        
        
        
        
        
        
        (1,017
        )
        
        
        
        
        
        
        
        
        (2,182
        )NET INCOME (LOSS)
        
        $
        (6,386
        )
        
        
        $
        2,618
        
        
        
        $
        (49,268
        )
        
        
        $
        15,170INCOME (LOSS) PER SHARE  BASIC:INCOME (LOSS) PER SHARE FROM CONTINUING OPERATIONS
        
        $
        (0.46
        )
        
        
        $
        0.27
        
        
        
        $
        (3.58
        )
        
        
        $
        1.27LOSS PER SHARE FROM DISCONTINUED OPERATIONS
        
        
        
        
        
        
        
        (0.07
        )
        
        
        
        
        
        
        
        
        (0.16
        )NET INCOME (LOSS) PER SHARE  BASIC
        
        $
        (0.46
        )
        
        
        $
        0.19
        
        
        
        $
        (3.58
        )
        
        
        $
        1.11INCOME (LOSS) PER SHARE  ASSUMING DILUTION:INCOME (LOSS) PER SHARE FROM CONTINUING OPERATIONS
        
        $
        (0.46
        )
        
        
        $
        0.26
        
        
        
        $
        (3.58
        )
        
        
        $
        1.26LOSS PER SHARE FROM DISCONTINUED OPERATIONS
        
        
        
        
        
        
        
        (0.07
        )
        
        
        
        
        
        
        
        
        (0.16
        )NET INCOME (LOSS) PER SHARE  ASSUMING DILUTION
        
        $
        (0.46
        )
        
        
        $
        0.19
        
        
        
        $
        (3.58
        )
        
        
        $
        1.10WEIGHTED AVERAGE SHARES OUTSTANDING:BASIC
        
        
        13,775
        
        
        
        
        13,702
        
        
        
        
        13,749
        
        
        
        
        13,669ASSUMING DILUTION
        
        
        13,775
        
        
        
        
        13,729
        
        
        
        
        13,749
        
        
        
        
        13,752SUPPLEMENTAL INFORMATION Depreciation and intangible asset amortization expense (as reported  within SG&A from continuing operations)
        
        $
        3,892
        
        
        
        $
        4,655
        
        
        
        $
        15,483
        
        
        
        $
        8,332




Reclassifications -Certain reclassifications were made to the quarter ended December 31, 2005 and 52 weeks ended December 31, 2005 condensed consolidated statement of operations in order to conform to the presentation of the quarter ended December 30, 2006 and 52 weeks ended December 30, 2006 condensed consolidated statement of operations. These reclassifications had no impact on consolidated net income (loss) as previously reported.



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LENOX GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)



ASSETSDecember 30,2006
        
        December 31,2005CURRENT ASSETS:Cash and cash equivalents
        
        $
        875
        
        $
        1,279Accounts receivable, net
        
        
        52,059
        
        
        55,563Inventories
        
        
        101,925
        
        
        94,346Deferred taxes
        
        
        13,896
        
        
        13,380Income tax receivable
        
        
        956
        
        
        Other current assets
        
        
        9,306
        
        
        8,411Total current assets
        
        
        179,017
        
        
        172,979PROPERTY AND EQUIPMENT, net
        
        
        49,471
        
        
        71,428ASSETS HELD FOR SALE
        
        
        
        
        
        17,018GOODWILL
        
        
        
        
        
        53,769TRADEMARKS
        
        
        119,439
        
        
        121,971OTHER INTANGIBLES
        
        
        14,135
        
        
        17,037MARKETABLE SECURITIES
        
        
        2,098
        
        
        2,449OTHER ASSETS
        
        
        9,637
        
        
        13,277$
        373,797
        
        $
        469,928LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIES:Current portion of long-term debt
        
        $
        49,056
        
        $
        10,000Borrowings on revolving credit facility
        
        
        47,510
        
        
        10,468Accounts payable
        
        
        35,248
        
        
        31,270Accrued compensation and benefits payable
        
        
        6,428
        
        
        16,538Income taxes payable
        
        
        
        
        
        6,590Severance and restructuring reserves
        
        
        1,939
        
        
        12,201Other current liabilities
        
        
        8,576
        
        
        6,554Current liabilities of discontinued operations
        
        
        
        
        
        32Total current liabilities
        
        
        148,757
        
        
        93,653DEFERRED COMPENSATION OBLIGATION
        
        
        2,085
        
        
        2,489PENSION OBLIGATIONS
        
        
        30,664
        
        
        87,014POSTRETIREMENT OBLIGATIONS
        
        
        15,853
        
        
        28,560DEFERRED TAXES
        
        
        18,297
        
        
        1,424LONG-TERM DEBT
        
        
        
        
        
        90,250DEFERRED GAIN ON SALE-LEASEBACK
        
        
        3,845
        
        
        OTHER NONCURRENT LIABILITIES
        
        
        12,617
        
        
        4,789STOCKHOLDERS EQUITY
        
        
        141,679
        
        
        161,749$
        373,797
        
        $
        469,928




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LENOX GROUP INC.

SEGMENTS OF THE COMPANY AND RELATED INFORMATION FROM CONTINUING OPERATIONS

(In thousands)



Quarter Ended
        
        
        
        
        
        52 Weeks EndedDecember 30,2006
        
        
        
        December 31,2005
        
        
        
        
        
        December 30,2006
        
        
        
        December 31,2005WHOLESALE:Net sales
        
        $
        89,918
        
        100.0%
        
        $
        85,038
        
        100.0%
        
        
        
        $
        330,352
        
        100.0%
        
        $
        217,009
        
        100.0%Gross profit
        
        
        32,535
        
        36.2%
        
        
        29,143
        
        34.3%
        
        
        
        
        135,928
        
        41.1%
        
        
        90,800
        
        41.8%Selling expenses
        
        
        10,202
        
        11.3%
        
        
        11,947
        
        14.0%
        
        
        
        
        42,324
        
        12.8%
        
        
        26,473
        
        12.2%Goodwill impairment
        
        
        18,195
        
        20.2%
        
        
        
        
        0.0%
        
        
        
        
        55,269
        
        16.7%
        
        
        
        
        0.0%Operating income (loss) from continuing operations
        
        
        4,138
        
        4.6%
        
        
        17,196
        
        20.2%
        
        
        
        
        38,335
        
        11.6%
        
        
        64,327
        
        29.6%RETAIL:Net sales
        
        $
        31,328
        
        100.0%
        
        $
        58,020
        
        100.0%
        
        
        
        $
        72,367
        
        100.0%
        
        $
        72,777
        
        100.0%Gross profit
        
        
        15,698
        
        50.1%
        
        
        32,244
        
        55.6%
        
        
        
        
        40,364
        
        55.8%
        
        
        41,659
        
        57.2%Selling expenses
        
        
        9,543
        
        30.5%
        
        
        14,780
        
        25.5%
        
        
        
        
        32,712
        
        45.2%
        
        
        22,397
        
        30.8%Operating (loss) income from continuing operations
        
        
        6,155
        
        19.6%
        
        
        17,464
        
        30.1%
        
        
        
        
        7,652
        
        10.6%
        
        
        19,262
        
        26.5%DIRECT:Net sales
        
        $
        37,245
        
        100.0%
        
        $
        32,413
        
        100.0%
        
        
        
        $
        98,020
        
        100.0%
        
        $
        41,129
        
        100.0%Gross profit
        
        
        25,240
        
        67.8%
        
        
        19,945
        
        61.5%
        
        
        
        
        66,515
        
        67.9%
        
        
        25,611
        
        62.3%Selling expenses
        
        
        15,004
        
        40.3%
        
        
        12,822
        
        39.6%
        
        
        
        
        46,904
        
        47.9%
        
        
        16,971
        
        41.3%Operating income from continuing operations
        
        
        10,236
        
        27.5%
        
        
        7,123
        
        22.0%
        
        
        
        
        19,611
        
        20.0%
        
        
        8,640
        
        21.0%CORPORATE:Unallocated net sales
        
        $
        574
        
        
        
        $
        672
        
        
        
        
        
        $
        1,767
        
        
        
        $
        813Unallocated general and administrative expenses
        
        
        28,819
        
        
        
        
        32,508
        
        
        
        
        
        
        112,736
        
        
        
        
        60,553Unallocated pension curtailment and settlement gains
        
        
        (14,783
        )
        
        
        
        
        
        
        
        
        
        
        (14,783
        )
        
        
        
        Unallocated trademark impairment
        
        
        3,743
        
        
        
        
        
        
        
        
        
        
        
        3,743
        
        
        
        
        Loss from continuing operations
        
        $
        (17,205
        )
        
        
        $
        (31,836
        )
        
        
        
        
        $
        (99,929
        )
        
        
        $
        (59,740
        )CONSOLIDATED:Net sales
        
        $
        159,065
        
        
        
        $
        176,143
        
        
        
        
        
        $
        502,506
        
        
        
        $
        331,728Operating income (loss) from continuing operations
        
        
        3,324
        
        2.1%
        
        
        9,947
        
        5.6%
        
        
        
        
        (34,331
        )
        -6.8%
        
        
        32,489
        
        9.8%




The Company has three reportable segments  Wholesale, Retail and Direct. Although the product produced and sold for each segment is similar, the type of customer for the product and the method used to distribute the product are different. The segmentation of these operations also reflects how the Company's chief executive officer (the CEO) currently reviews the results of these operations. Operating income (loss) from continuing operations for each operating segment includes specifically identifiable operating costs such as cost of sales and selling expenses. General and administrative expenses are generally not allocated to specific operating segments and are therefore reflected in the corporate category. Other components of the statement of operations, which are classified below operating income (loss) from continuing operations, are also not allocated by segment. In addition, the Company does not
account for or report assets, capital expenditures or certain depreciation and amortization by segment. All transactions between operating segments have been eliminated and are not included in the table above.



Reclassifications -Certain reclassifications were made to the quarter ended December 31, 2005 and 52 weeks ended Decmeber 31, 2005 segment information in order to conform to the presentation of the quarter ended Decmeber 30, 2006 and 52 weeks ended December 30, 2006.  These reclassifications had no impact on consolidated net income (loss) as previously reported.



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