ICF MARKETING PROGRAM HOW CAN WE “ADD VALUE” TO CRYSTAL AND MAKE CRYSTAL MORE DESIREABLE TO TODAY’S CONSUMER? HOW CAN WE “ADD VALUE” TO CRYSTAL AND MAKE CRYSTAL MORE DESIREABLE TO TODAY’S CONSUMER?

ICF Meeting 10/26/07 CURRENT SITUATION Crystal Sales Peaked in Total Crystal Imports Have Declined 40% Since (- $166 million). Glass Stemware/Giftware Imports Are Up 30% Since (+ $135 million). Crystal Retail Prices Are Lower Today (in real terms) Than They Were in 1990: 1990 S/W = $3.55/Piece (26.0 million pieces) 1990 S/W = $3.55/Piece (26.0 million pieces) 2006 S/W = $3.83/Piece* (21.2 million pieces) 2006 S/W = $3.83/Piece* (21.2 million pieces) (*1/2% annual increase over 16 years) (*1/2% annual increase over 16 years)

ICF Meeting 10/26/ Glass Imports From China Product Total China % STEMWARE $189.3 M $ 62.9 M 33% GIFTWARE $397.9 M $212.2 M 53% ORNAMENTS $194.3 M $130.4 M 67% LIGHTING $ 83.6 M $ 31.6 M 38% TEMPERED $ 27.1 M $ 8.1 M 30% VOTIVES $ 14.2 M $ 7.2 M 51% MILLEFIORI $ 8.5 M $ 5.9 M 69% PERFUME BTL./ $ 3.6 M $ 2.0 M 56% SMOKING ACC. GRAND TOTALS $918.5 M $460.3 M 50%

ICF Meeting 10/26/07 CURRENT SITUATION “Market Power” Is Increasingly Concentrated In A Few National Retail Chains. Retailer “Private Label” & “Designer” Brands Account For A Larger Share Of Market Than Ever Before. “Designer” Or “Celebrity” Collections Are Frequently Better Known Than The Manufacturer’s Own Brand. In General, “Tabletop” Manufacturers & Distributors Are Not Operating On A Profitable Basis. Industry Consolidation & “Change Of Ownership” Is Accelerating.

ICF Meeting 10/26/07 IS “CRYSTAL” RELEVANT TO TODAY’S CONSUMER? Positives Beautiful/Brilliant Beautiful/Brilliant Elegant/Luxurious Elegant/Luxurious Prestige Prestige “Collectible” “Collectible” Consumers have an emotional connection with crystal. It makes them feel better about themselves. Consumers have an emotional connection with crystal. It makes them feel better about themselves. Negatives Expensive Expensive Fragile Fragile Used Infrequently Used Infrequently Requires “Hand Washing” Requires “Hand Washing” Consumers view crystal as having little value in their lives - it is a time consuming extravagance. Consumers view crystal as having little value in their lives - it is a time consuming extravagance.

ICF Meeting 10/26/07 HOW DO WE COMMUNICATE WITH THE CONSUMER? Advertising /Public Relations: *National Advertising *National Advertising *Bridal Advertising *Bridal Advertising *Retailer Advertising *Retailer Advertising *Internet Advertising *Internet Advertising *Sales Promotions *Sales Promotions *Special Interest ”Events” & Articles *Special Interest ”Events” & Articles Current Industry Practice: *Little or No Activity *Little or No Activity *Limited Activity *Limited Activity *Controlled by Retailer *Controlled by Retailer *Limited - Retailers *Limited - Retailers *Retail “Sales” *Retail “Sales” *Limited activity *Limited activity (Specialty Stores) (Specialty Stores)

ICF Meeting 10/26/07 WHAT CAN THE ICF DO TO HELP THE CRYSTAL INDUSTRY? IDENTIFY OPPORTUNITIES FOR PROFITABLE GROWTH. *Collect and analyze current consumer sales and “channel of distribution” market information (USA & E.U.). *Collect and analyze current consumer sales and “channel of distribution” market information (USA & E.U.). *Conduct original market research to identify consumer needs/desires. *Conduct original market research to identify consumer needs/desires. *Share information on successful consumer “home” marketing programs. *Share information on successful consumer “home” marketing programs. *Coordinate industry marketing conferences to stimulate new industry design & marketing initiatives. *Coordinate industry marketing conferences to stimulate new industry design & marketing initiatives.

ICF Meeting 10/26/07 WHAT CAN THE ICF DO TO HELP THE CRYSTAL INDUSTRY? CONDUCT A CONFERENCE FOR ICF MEMBERS TO INTERACT WITH MARKETING, RESEARCH, AND PRODUCT DEVELOPMENT PROFESSIONALS. EXPLORE THE DESIREABILITY OF AN “ICF SEAL OF APPROVAL” FOR PRODUCT QUALITY/COMPLIANCE WITH INDUSTRY STANDARDS (i.e. GOOD HOUSEKEEPING “SEAL OF APPROVAL”). COORDINATE INDUSTRY PUBLIC RELATIONS OPPORTUNITIES TO ATTRACT AS MUCH COVERAGE AND CONSUMER INTEREST AS POSSIBLE. CREATE DESIGN AND PRODUCT DEVELOPMENT AWARDS TO RECOGNIZE INDUSTRY ACHIEVMENTS AND GENERATE MORE CONSUMER INTEREST.

ICF Meeting 10/26/07 WHAT CAN THE ICF DO TO HELP THE CRYSTAL INDUSTRY? EXPLORE WORKING WITH THE CSC MORE CLOSELY TO SHARE COMMON EXPENSES (administrative, general legal expenses, and communication). SPEND MORE TIME AND RESOURCES ON “PROACTIVE” MARKETING ACTIVITIES OF COMMON INTEREST TO THE “TABLETOP” INDUSTRY. ASK LEADING “PUBLIC RELATIONS” FIRMS TO PROPOSE ACTIONS THE INDUSTRY COULD TAKE TO IMPROVE THE “PERCEIVED VALUE” & CONSUMER INTEREST IN CRYSTAL.

ICF Meeting 10/26/07 CONVENE A CONFERENCE OF ICF MEMBERS TO DISCUSS AND RANK THE OPPORTUNITIES FOR “INDUSTRY COORDINATION AND COOPERATION”. The industry is at a critical point in its long history. We can explore opportunities for greater cooperation or we can continue to have the ICF serve as the industry “clearinghouse” for legal, regulatory and safety issues. Many of the opportunities for additional areas of cooperation do not have substantial costs associated with them. Public Relations programs would entail additional costs. If undertaken, there would have to be a “separate budget” for these programs divided among the participants.

ICF Meeting 10/26/07 Member Comments and Suggestions Are Welcomed