EXHIBIT 99.1

                          LENOX GROUP, INC., #11088816
                              BUSINESS PLAN UPDATE
                          APRIL 24, 2007, 8:00 A.M., CT
                           CHAIRPERSON: MARC PFEFFERLE


Operator                   Good morning, ladies and gentlemen and thank you for
                           standing by for the Lenox Group Inc. business plan
                           update conference call. Today's conference call is
                           being recorded. At this time all participants are in
                           a listen-only mode. Following the presentation,
                           instructions will be given for the question and
                           answer session. If anyone needs assistance at any
                           time during the call, please press the star key
                           followed by the zero.

                           As a reminder, any comments that are made today about
                           the company's outlook or future performance are
                           forward-looking statements. As such, they are subject
                           to uncertainties and risks and actual results may
                           differ materially from those contained in the
                           outlook. Please refer to the company's SEC filings
                           included in its Form 10-K to view more complete
                           reports of the risks and factors at work in the
                           company's business and industry. No recording
                           reproductions, transmission or distribution of
                           today's call is permitted without Lenox's consent.

                           I would now like to turn our conference over to Marc
                           Pfefferle, Lenox Group's Interim Chief Executive
                           Officer. Please go ahead, sir.

M. Pfefferle               Good morning. Thank you for joining us today. On the
                           phone with me today are Lenox Group's CFO, Tim
                           Schugel, Chief Counsel, Lou Fantin, and 2 of my
                           colleagues at Carl Marks who've been assisting me,
                           Walt Denekas and Bret Rattray.

                           To get started I want to first outline both what we
                           will be discussing on today's call and also what we
                           will not discuss on today's call. The purpose of the
                           call is to provide the investors an update on the
                           operational details of our new business plan and the
                           progress we have made to date, some of which has
                           already been reported in various 8-Ks, press releases
                           and our shareholder letter that was included in the
                           proxy statement we just sent out.

                           However, we will not provide any specific details
                           that are competitively sensitive or discuss the
                           company's first quarter financial results or
                           consistent with our previous announcement, issue any
                           specific forward-looking financial guidance. We
                           expect to announce first quarter results in early May
                           and we will issue a press release at that time. We do
                           not, however, expect to hold a conference call as
                           previously announced to go over that release. The
                           company's Board has decided to discontinue the
                           practice of providing

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                           guidance for the foreseeable future.

                           With that introduction, let me get started. We have a
                           lot to talk about in a short amount of time. By way
                           of introduction, I've been the CEO of the company
                           since January 5th. As you are probably aware, I am a
                           partner of Carl Marks Advisory Group and my
                           colleagues from Carl Marks and I who have joined me
                           here on the Lenox engagement bring to this assignment
                           many decades of management consulting turnaround,
                           interim management, interim executive management and
                           restructuring experience as well as profit
                           improvement. We are excited to be here and we really
                           do believe we're making a positive difference in the
                           business and those changes are starting to be seen.

                           As you are also probably aware, Department 56
                           purchased Lenox in September 2005. The businesses
                           were never fully integrated and have struggled since
                           that time with operational execution and other
                           business issues. Since the beginning of the year the
                           management team, my colleagues at Carl Marks and I
                           have been working pretty diligently to develop and
                           begin executing a plan to return Lenox to
                           profitability and growth.

                           I'm pleased to report that over the last several
                           months we've made substantial progress in planning
                           and implementing business improvements and as I
                           alluded to, we've already begun to see some favorable
                           results.

                           We now have a plan in place and have begun to reduce
                           operating costs, eliminate organizational
                           inefficiencies and streamline profits.

                           While 2007 will obviously be a year of transition, it
                           will set the stage for future growth and
                           profitability.

                           Briefly now I want to talk about some key actions and
                           aspects contained in the new business plan. They
                           include, and very importantly, developing clear brand
                           strategies for our brand portfolio including Lenox,
                           Dansk, Gorham and Department 56 and implementing a
                           brand focused organizational structure to support
                           future top line growth and maximize brand performance
                           across all of our channels which include wholesale,
                           direct-to-consumer and retail.

                           Let me give you some specific examples of what we've
                           done in each brand.

                           First of all Lenox. Lenox is a brand we believe has
                           great power in the better tabletop gift and
                           collectable markets and enjoys extremely strong brand
                           equity with nearly 90% customer awareness in our
                           market research. In tabletop we're focusing on
                           excellence in the design of products that will
                           resonate with end consumers and importantly, secure
                           ongoing placement with our retail partners, supported
                           by design extensions to keep those placements fresh
                           and productive for the retailer and to extend the
                           life of our

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                           product lines. So when we have a winner we will
                           support it and extend it.

                           More specifically in the fine category our strategy
                           is to defend our leadership position through
                           increased and balanced introduction of quality new
                           designs across a wide range of key style categories.
                           This includes maximizing our penetration and sales of
                           our key designer dinnerware and adding more
                           accessories as we have successfully done in Lenox.

                           In casual we are looking to increase our market share
                           through new design niches for our products, finding
                           and designing too. Casual's been an important part of
                           Lenox but one that still has been under-realized.

                           Dansk is a brand with a long reputation for design
                           excellence over a broad spectrum of dinnerware,
                           glassware, flatware, wood, textile and
                           cookware-to-serve products. It truly is a more of a
                           houseware brand than our other brand portfolio.

                           Recent positioning of Dansk in houseware departments
                           of department stores and poor execution have led to
                           suboptimal performance. We are in the process of
                           reclaiming our design heritage and historical
                           positioning to provide a lifestyle product assortment
                           solution for our retail partners. This plan change
                           and brand position which we have already started to
                           execute has been very well received by our customers
                           and we look forward to much stronger performance in
                           the future. However, this will take some time and we
                           will definitely have some work to get from where we
                           are today to that vision but we're excited about our
                           progress and our customers are as well with our
                           vision.

                           Gorham is a credible brand with historic strength in
                           flatware and operates in the same market space as
                           Lenox. Gorham is less powerful than Lenox and has
                           received limited priority and as a result of those
                           factors, performance has been suboptimal. We plan to
                           retain the Gorham brand, continue to serve our
                           existing long term successful design and customer
                           franchises, and we have several of those, while using
                           Gorham to be more opportunistic in instilling price
                           point and assortment opportunities with our retail
                           partners that are not appropriate for Lenox and that
                           we did not intend to pursue with the Lenox brand.

                           At Department 56 we have returned to our strength
                           which is centered around Villages, Snow Babies,
                           seasonal, Christmas and Halloween as well as several
                           key outside designer product lines. Of particular
                           significance, we have a major focus on stabilizing
                           and maximizing our core Village and Snow Babies in
                           customer franchises of which we have experienced some
                           recent success in arresting historical declines.
                           We've exited many underperforming everyday and
                           secondary holiday product lines and in the process
                           reduced SKU count and simplified the business. We'll
                           be focusing on the design of differentiated and
                           giftable products that create an emotional

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                           connection with our customers.

                           That's the first set of major initiatives is to
                           really work on our brand platforms and our brand
                           strategies and we will continue to refine those
                           strategies and make them as full and as profitable as
                           we can.

                           The next major initiative is that we are simplifying
                           and consolidating our infrastructure where
                           appropriate to reduce costs and improve efficiencies.
                           Three examples of that are we have announced the
                           consolidation of our Rogers, Minnesota distribution
                           center into the Hagerstown, Maryland operation which
                           is a state of the art distribution center.

                           This move will have a one year payback of the moving
                           cost and the lease exit costs and incremental capital
                           invested to bring HDC to the full capabilities to
                           handle the D56 product line.

                           We just recently announced that we'll be
                           consolidating our finance team into one facility here
                           at Bristol over the next month and I'll talk more
                           about that later.

                           We're working to simplify, streamline and consolidate
                           our many varied business applications and IT
                           platforms and to stabilize and standardize our IT
                           infrastructure. Right now we have many disparate
                           applications and platforms that are expensive and
                           difficult to maintain and we will be over the next
                           couple of years moving forward to improve that.

                           Our plan also includes improving gross margins and we
                           expect to do this through a combination of better
                           sourcing, plant cost reductions and returning Lenox
                           retail to its historical first and second quality
                           merchandising strategy from its current liquidation
                           product merchandising strategy.

                           I'll talk about each one of these. Lenox has
                           traditionally been a manufacturing oriented company
                           and it had a manufacturing oriented mindset and
                           organization structure. However, the majority of our
                           cost of sales now comes from sourced versus
                           manufactured products. The manufactured products
                           namely being fine china from Kinston and sterling
                           products in Pomona.

                           Accordingly, it's our goal to build a world class
                           sourcing organization to maximize quality and
                           delivery while minimizing purchase costs. A large
                           part of the cost reductions in sourcing will come
                           from working closely with our factories,
                           consolidating factories and reducing our reliance on
                           third party buying agents and trading companies. For
                           example we've had factories approach us and offer us
                           significant cost savings to deal with Lenox direct.

                           In addition, we've closed our three person Vietnam
                           office and eliminated the expensive Lenox entity
                           registered there. We're relocating a part of our

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                           Shanghai office to southern China to be close to the
                           vendors in our area. We have a significant presence
                           in southern China.

                           As far as Kinston is concerned, Kinston is an
                           excellent manufacturing facility with a lead time
                           advantage over our competitors and significant
                           strength in ceramics, engineering and technical
                           support. We've always been an innovator and a leader
                           in the technical aspects of the business.

                           As announced, we've reduced our workforce to align
                           with reduced production levels in part due to over
                           time, reductions in our retail presence and we've
                           generated $4.5 million of annualized cost savings
                           over the previously budgeted 2007 levels.

                           We've also begun other cost savings in efficiency
                           initiatives including formulation changes, reduced
                           energy consumption, utilization of the kilns and
                           improved processes to reduce production loss.

                           During the later part of '06 and the early part of
                           the first quarter of this year, Lenox retail was
                           focused on selling second quality and excess
                           liquidation product as we call it here and we stopped
                           totally replenishing first quality products. This
                           resulted in a significant sales mix towards lower
                           margin products and resulted in gross margins falling
                           significantly from those historical levels.

                           Our go forward strategy is to return Lenox retail to
                           a mix of current first quality and second quality
                           products with some clearance products from wholesale
                           and a focus on improving merchandising. We'll talk
                           about our change in leadership there which is in sync
                           with that strategy.

                           We're improving internal processes to identify
                           negative trends at retail earlier in the wholesale
                           channel through point of sale data and sell through
                           information which we believe will result in more
                           timely response with less total product requiring
                           liquidation, moving product to the retail channel
                           sooner that might become excess. These actions are
                           expected to increase gross margins in this channel
                           back to historic levels.

                           Our plan also includes a focus on improving business
                           processes and overall execution and I'll go over a
                           few of these planned improvements, first being
                           reducing our product development timeline to be
                           quicker to market and more responsive to customer
                           trends and we're making good progress. This year
                           we're better than we were last year and each
                           successive market I think we will show improvement.

                           Improving forecasting accuracy and inventory
                           management with a focus on reducing excess inventory
                           which we talked about a little bit ago that must be
                           liquidated at discounted prices while speeding new
                           product to the market.

                           We're working more closely with our key trade
                           customers to allow us to

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                           better track retail sell through and improve demand
                           forecasting to enable these improvements. In
                           addition, we're better integrating our wholesale and
                           retail channels and the management of those channels
                           so that we can deploy excess product to retail
                           faster, allowing us to maximize return on this
                           product.

                           Implementing supply chain efficiencies is another
                           major initiative and execution with a focus on
                           reducing cost and achieving excellence in customer
                           delivery. We talked about the consolidations but
                           we're also working on improving processes at our HDC
                           Hagerstown facility and have had some management
                           changes there and are working on process improvement.

                           Certainly not last or least is promoting a culture
                           within our company of accountability and continuous
                           improvement in order to encourage and enhance
                           performance, efficiency and reduce cost.

                           We've already implemented numerous improvements, some
                           of which we talked about, some of which we will talk
                           about and established good, positive momentum.

                           We had a very successful tabletop show over the
                           weekend and more importantly, our sales force is
                           re-energized and very supportive of our go forward
                           brand and business strategies. These are our front
                           line people and it's critical for them to be charged
                           up to go to the market. We're very pleased with the
                           progress. We're very pleased by what we were able to
                           deliver at this market despite being a little behind
                           the curve, coming in late and we expect an even
                           better market in October.

                           Going forward we intend to continue concentrating on
                           the day-to-day business while not losing sight of the
                           need to develop and implement the longer term plan.

                           With that in mind, I'd like to discuss financial,
                           operational and organization changes we have
                           implemented to date as well as other notable business
                           improvements.

                           On the financial front, we now know that having
                           adequate funding is essential to meeting today's
                           working capital needs but more importantly, providing
                           longer term flexibility that we need to grow the
                           business.

                           To that end, last Friday we announced the company
                           completed a $275 million refinancing package from
                           UBS, our current agent bank. The new financing is for
                           two new credit facilities, a $100 million secured
                           term loan and $175 million revolving credit facility.

                           These facilities provide us with increased
                           flexibility to finance the

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                           company's ongoing operations. Together with the new
                           business plan we have already been executing, the new
                           financing is an important step as we position Lenox
                           to move forward for growth and sustained
                           profitability.

                           In addition as we've previously announced, we have
                           already implemented approximately $17 million of
                           annualized cost reductions. These include $8.6
                           million in pension savings as a result of freezing
                           the Lenox defined benefit plans as of December 31,
                           2006 and as discussed, include the actions we've
                           taken at the Kinston, North Carolina factory that
                           have resulted in $4.5 million savings. In addition,
                           we're realizing about $3.9 million in other cost
                           savings.

                           On top of this we expect to implement significant
                           additional annualized cost savings throughout the
                           year and into 2008 and beyond. These savings from
                           several discussed initiatives include additional
                           Kinston savings and some efficiencies, savings from
                           the sourcing actions we've talked about, our tech
                           center outsourcing, distribution consolidation and
                           efficiency improvements, our IT improvements and
                           systems consolidation, our finance consolidation and
                           various and multiple administrative savings and
                           efficiency efforts.

                           While we will not discuss any specific forward
                           details of these improvements, it's important to note
                           that these savings are not purely incremental as
                           there are many business factors and plan changes to
                           consider but nevertheless they're significant and
                           real.

                           I'm pleased to report that we have also completed a
                           number of important organizational initiatives. As we
                           announced previously and alluded to, we have
                           implemented a new brand based organization structure
                           led by a CEO who will manage all corporate and
                           infrastructure functions and a newly create position
                           of chief marketing officer who will manage all brands
                           and channels. They are to increase the brand focus
                           and leverage our brand sales across all the company's
                           distribution channels. This has been a historic
                           challenge for the company.

                           For the present I will remain as CEO to manage the
                           corporate and infrastructure functions and to ensure
                           the proper implementation and continuity of change
                           programs as long as required and requested by the
                           Board. The skill sets to implement major changes such
                           as we are embarking on are different from those that
                           are required to manage and grow the business on a
                           longer term basis and this approach we've employed
                           has proven effective many times in the past.

                           As for the CMO, we have initiated a search and look
                           forward to filling this position in the relatively
                           near future. While we search for a permanent CMO we
                           have appointed an interim chief marketing officer
                           from the Carl Marks Group, Bret Rattray, to lead this
                           new brand focused organization. Bret is doing an
                           outstanding job and the whole team with Bret is
                           moving forward

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                           in implementing the changes that we've outlined.

                           I'll outline a few of the organizational changes but
                           there's others that we've done in additional to what
                           we'll be discussing here.

                           Reporting to the CMO is the newly appointed, highly
                           experienced interim brand leader for Dansk who is an
                           expert in branded consumer products and retail
                           marketing. We really have made great strides in a
                           very short period of time and again the reception to
                           our strategies from both the team itself and from the
                           marketplace has been positive.

                           In addition we are actively searching for a new
                           leader for the Lenox brands and have in place capable
                           leadership for the Gorham and Department 56 brands at
                           the present time.

                           We also put in place a new head of Lenox retail
                           channel who has substantial retail merchandising
                           experience. This is important given the strategy that
                           we've outlined and I think we can better leverage our
                           presence in the marketplace.

                           We have an existing experienced and excellent leader
                           in the wholesale channel. We have consolidated and
                           elevated the design function within the Lenox side of
                           the house to leverage the great pool of design talent
                           that exists within the company. Our
                           direct-to-consumer business will be centralized in
                           our Bristol offices under the new CMO and we are
                           looking for a new leader for that channel. While we
                           identify the right person to lead the business, our
                           current president of consumer direct will be
                           responsible for that role.

                           We believe the direct-to-consumer business is one
                           with tremendous opportunity. Internet purchases are
                           increasing on a worldwide basis and we are growing
                           with that trend and we are of course going to exploit
                           the internet growth and our overall direct channel
                           for both traditional product lines but also expand
                           its use as a sales channel for all of our brands.

                           As mentioned before, we are centralizing our finance
                           function into our Bristol, PA offices. And as we
                           previously announced, after 14 years with the company
                           Tim Schugel, who many of you know and have known over
                           the years as our CFO and COO, has made a decision not
                           to relocate to Bristol. He will however remain with
                           the company until a new CFO is hired and that process
                           is already underway. Thank you, Tim, for your years
                           of service.

                           Having a first class sourcing organization is key to
                           improving margins and profitability. Accordingly
                           we've elevated sourcing to report directly to the CEO
                           and appointed a new corporate VP of global sourcing
                           who joined the company in September '06 from one of
                           our competitors. His expertise is in product
                           development and global sourcing. He will integrate
                           sourcing resources of Lenox and Department 56 and
                           oversee quality assurance and

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                           technical service functions. We're very fortunate and
                           pleased to have him on board.

                           We've also named a new corporate VP of supply chain
                           and logistics reporting to the CEO who will be based
                           in our Bristol offices. He will lead all of our
                           supply chain efforts which support inventory
                           planning, import/export, procurement and supply
                           chain. We also have announced a new chief information
                           officer being appointed who will lead all of our
                           systems improvement efforts.

                           So as you can see and hear and I won't touch on all
                           the additional changes that would be at lower levels
                           but are nevertheless important and significant, we
                           have already strengthened the management team, put in
                           place some terrific and very qualified people, are
                           working very diligently to not only fill the holes
                           that we still have but to set up a cohesive group to
                           manage the company on a long term basis.

                           Now I'm going to discuss a number of operational and
                           channel specific initiatives that are underway. First
                           of all, Department 56 which we talked about in the
                           brand section of the presentation. We've reorganized
                           the business around the new brand strategy and as
                           discussed, we are refocusing core product lines and
                           assortments to better satisfy customer preferences
                           including designing differentiated products with
                           emotional connections for consumers, also lines that
                           are giftable.

                           Lines that have limited sales in relation to the
                           minimum purchase quantities or the effort required to
                           maintain and keep these lines fresh have been pared
                           back or dropped entirely. Basically we've brought the
                           infrastructure of that business in concert with the
                           go forward business that we believe we can maintain
                           and grow.

                           In the wholesale channel where we already have
                           excellent and deep customer relationships, we will be
                           working hard to better understand our customers'
                           businesses and work closely together with them to
                           propose value added programs where we see
                           opportunities.

                           In our direct channel we are investing significantly
                           to grow the business in all areas but in particular
                           to continue the growth of our internet business. We
                           are also expanding our jewelry collections and better
                           leveraging our entire corporate product portfolio and
                           are also increasing the sophistication and
                           effectiveness of our marketing effects utilizing such
                           concepts as lifetime customer value measurements and
                           more sophisticated database mining.

                           In addition, product personalization is a big
                           opportunity in the direct channels as well as some of
                           our other channels. Over the past year we've invested
                           in kilns at our Langhorne, Pennsylvania facility
                           which are dedicated to personalizing ceramic products
                           with messages and/or family names

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                           selected by the end consumer. This new in-house
                           capability gives us the ability to add value to our
                           products by converting our beautiful designs into
                           personalized products with these emotional
                           connections that I talked to you about that the end
                           consumer really values. That strategy's been working
                           and the sales of those personalized products has been
                           steadily increasing.

                           In retail we have decided to exit the Hoopla
                           business. Proper execution of this retail business
                           model would require a substantial investment at a
                           time where it's best to focus our resources on
                           improving our core businesses and growing our core
                           businesses. We have reduced our expenses accordingly.

                           Equally important is that we have integrated the
                           strategies for wholesale and retail. Retail outlet
                           stores are already the most cost effective
                           disposition channel for excess and obsolete inventory
                           and factory seconds. By going back to our historic
                           roots and adding our new product component to the
                           sales mix, we will and expect to get inventory
                           balancing opportunities and work to prevent excess
                           and obsolete inventory in the first place. By that I
                           mean if product is moved out to retail before we're
                           in a panic mode, we can merchandise and sell that
                           product at much higher margins.

                           The outlet mall shopping experience makes this
                           possible, this integration between retail and
                           wholesale because customers are expecting the
                           assortment to be different with every visit. They
                           don't expect the store to be carrying a full line so
                           we can move product from wholesale to retail and vice
                           versa to fill our business needs and maintain a
                           fulsome experience at the retail store.

                           On the distribution front and as we talked about
                           already, we announced the consolidation of Rogers
                           into Hagerstown. That's planned for the end of the
                           fourth quarter this year because we want to execute
                           in a low risk manner. In addition, we've integrated
                           the distribution function into one organization which
                           as I discussed, will report directly to the CEO and
                           serve all brands and channels.

                           We are outsourcing certain technical center functions
                           for our sourced product lines to Asia for greater
                           efficiency. We are relocating certain other functions
                           to Pomona, from Pomona to Bristol as well as Kinston
                           to support new product development and the working of
                           our current product lines. This will enable us to
                           better utilize our resources and product testing and
                           lead to significant cost savings.

                           In information technology, our new CIO has been
                           developing and implementing a plan already to
                           simplify, integrate and improve our IT platforms.
                           This is a long term effort versus a short term hit
                           but we expect these actions to reduce IT costs
                           overall and allow our staff across the organization
                           to better access information and to become more
                           efficient so we do expect as we realize these
                           improvements in IT to have corresponding

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                           improvements and efficiency elsewhere in the
                           organization.

                           That's the highlights of a lot of the efforts we've
                           been working on. In summary we've developed and are
                           refining new brand and channel strategies to
                           stabilize where required our business and other areas
                           to grow each of our commercial activities and people
                           are already working on implementing these strategies.

                           We've achieved significant annualized cost savings
                           and will be implementing additional savings to
                           increase business profitability.

                           We have implemented a new organization structure and
                           are working to fill remaining open positions. We are
                           working to improve our operations, business processes
                           and infrastructure to profitably support future
                           growth and serve as a platform.

                           Before we close the call and open for questions, I
                           want to emphasize that while we've just outlined for
                           you many changes that we've implemented to date, we
                           are mindful of our need to continue identifying areas
                           of the business that need improvement and are
                           developing ways to strengthen our brands and value
                           propositions for our trade customers and consumers. I
                           assure you that the team is committed and that work
                           will continue.

                           We've been into this process a little over 3 months
                           and accomplished an enormous amount. An enormous
                           amount of work is still required and now that the
                           financing is out of the way, our focus is on that
                           execution and on delivering the results that we're
                           planning to achieve.

                           We thank you. Thank you for your support and your
                           interest in our company. With that I will open up the
                           line. You can submit your questions to the operator.

Operator                   Thank you. We will now begin the question and answer
                           session. As a reminder, if you have a question,
                           please press the star key followed by the one on your
                           touchtone telephone. If you'd like to withdraw your
                           question, please press the star key followed by the
                           two. If you are using a speakerphone, you will need
                           to lift the handset before making your selection. One
                           moment please.

                           Our first question comes from the line of Greg Ryan.
                           Please state your company name followed by your
                           question.

G. Ryan                    It's Gabelli Asset Management. Hi, gentlemen.
                           How are you today?

M. Pfefferle               Very good. Thanks.

G. Ryan                    A couple of quick questions. When you started talking
                           about the brand

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                           platforms and walking through them, did you guys look
                           at selling any of them or divesting any of the
                           brands?

M. Pfefferle               We're not going to get into acquisition kinds of
                           discussions. Our focus and the Board's focus, and
                           they're very mindful of it, is to increase
                           shareholder value. We will continue to do whatever is
                           prudent to pursue that path. There have been many
                           people, especially initially, call in our period of
                           initial disarray and they asked about various pieces
                           of the business. We look at them in the context of
                           how best we can maximize overall value. So that
                           process we're certainly, as I've alluded to, not done
                           with and we're going to continue to try to maximize
                           our platforms.

G. Ryan                    Maybe a better way to ask it is when you came in,
                           what makes you guys confident or what did you see in
                           the Department 56 brand that makes you think you guys
                           can (1) stabilize and (2) return it to a growth
                           platform and a profitable business that can actually
                           add value to the shareholders?

M. Pfefferle               That's a great question. Again I'm going to be very
                           careful not to talk about forward-looking kinds of
                           things. The business in its restructured form
                           generates positive cash flow and value and any
                           assessment of any business has to be related to what
                           you can generate out of the business and what its
                           value might be on the outside.

                           Clearly those kinds of thoughts are things we have
                           considered. Certainly given its track record and
                           historic decline, the value that can be received on
                           the outside is distressed. We believe we can
                           certainly maximize the value of it. We're not miracle
                           workers but we have made some improvements and seen
                           some decline in the deterioration of the business and
                           some bright spots where we've actually stabilized
                           things.

                           Hoopla showed that the Village issue is more than
                           just a decline of collectibles or an aging of a
                           population that loves that product line. The most
                           profitable or the most productive part of the Hoopla
                           store was the Village display. It was in the back of
                           the store. It was not advertised and yet it far
                           out-performed every other area of the store in a
                           significant way.

                           That was in a couple of locations in a very
                           relatively short amount of time albeit in a holiday
                           season but in the back of the store without calling
                           any attention to it. So it does show that part of our
                           issue is the channel and that there is some
                           opportunity if done properly to at least maximize and
                           stabilize the brand. We'll do whatever's possible. We
                           can't create miracles but we're encouraged by some of
                           the signs and we're working to maximize that
                           franchise which is just a great franchise.

G. Ryan                    Exactly. If we can move on. You guys talked about
                           consolidating the financial operations out in
                           Bristol. Does that mean then you're going to move
                           the entire corporate headquarters out of Minnesota
                           out to Bristol?

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M. Pfefferle               Yes, that's correct. The timing of that transfer has
                            not yet been set.

G. Ryan                    So then the current facility which I think the
                           company owns, you guys will be looking to sell at
                           some point?

M. Pfefferle               That's one of the things we've looked at is as we've
                           restructured and as we transfer, we'll require less
                           space and we'll be able to lease a smaller facility.

G. Ryan                    Okay so that 66,000 square foot facility out in Eden
                           Prairie will be able to be sold then?

M. Pfefferle               Yes, but we have no definitive timeframe for that and
                           we'll do what makes prudent business sense.

G. Ryan                    You talked about $17.5 million in cost savings and
                           the fact that you're not going to do conference calls
                           going forward. How are you going to help the Street
                           and the investment community understand when you guys
                           are getting additional cost savings? Then on top of
                           that, as you better understand the business, how are
                           you going to help us understand what the business
                           model can return to in terms of operating profit,
                           free cash flow and revenue growth if we're not going
                           to have conference calls going forward at all?

M. Pfefferle               I'm going to let Lou Fantin address that question.

L. Fantin                  The Board actually looked at this issue very closely
                           and decided there's a trend as you know with many
                           companies not to provide guidance. Given our
                           business, the Board felt it was appropriate for us to
                           not provide guidance. Of course as we get results, we
                           will report those in our Qs and Ks where appropriate.
                           The results will be reported as they materialize.

M. Pfefferle               The Board will continue to consider the requests of
                           shareholders to provide guidance.

G. Ryan                    I mean I've got no problem with not providing
                           guidance. I just don't understand the reason for no
                           conference calls to at least discuss the results and
                           allow the investment community to get better
                           clarification on what you guys did report.

L. Fantin                  Again, the Board looked at both of those issues very
                           carefully. This is a time when we will obviously
                           follow the directive from the Board and if things
                           change we'll bring it before the Board again.

G. Ryan                    Marc, you talked about returning the business to
                           historical gross margin levels.

M. Pfefferle               In retail, yeah.

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G. Ryan                    Oh, just in the retail section? Okay. I didn't know
                           if that was for ... I was trying to understand if you
                           could help us better understand what the Lenox gross
                           margins were. Since it was held under another company
                           we were never really able to figure out what those
                           were historically. If it's just in retail I
                           understand.

                           Can you expand on what you guys are going to be
                           looking for in the new CFO now that Tim is going to
                           be stepping down and if you've started the process
                           and then exactly the timing on when you'd like to
                           have a new CFO brought in.

M. Pfefferle               The timing, we have started the process. The timing
                           is as soon as possible. What I'm looking for is a
                           very hands on versus corporate-ish CFO that has an
                           operational bias and can really be an active part of
                           the management team, both in reporting but more
                           importantly in analyzing and helping us make
                           refinements in our business approaches to be more
                           profitable.

G. Ryan                    Perfect. That's all I've got. Thanks, guys.

Operator                   We have no further audio questions at this time.
                           Please continue.

M. Pfefferle               If there are no further questions, we thank everyone
                           for listening in. Have a great day. We here will
                           continue to work hard, take your views under
                           advisement and try to create value.

Operator                   Thank you. Ladies and gentlemen, this does conclude
                           the Lenox Group Inc. business plan update conference
                           call. You may now disconnect. Thank you for your
                           participation and please have a pleasant day.
















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LENOX GROUP                                                              PAGE 14