1. The FUTURE of LEAD CRYSTAL CONSUMER PRODUCTS IN THE UNITED STATES Timothy Maher October 2004, ICF Technical Exchange Conference- Karlovy Vary

2. INTRODUCTION Challenging Times Challenging Markets Changing Consumer Industry Consolidation Shrinking Revenue/profits

3. BACKGROUND INFORMATION CHANGING CONSUMER EMERGING WORKFORCE  Smaller  Different Values WORKPLACE DEMOGRAPHICS

4. Emerging Workforce Has Different Values Post war 57-74 Leading edge boomer 48-56 Trailing edge Boomer 37-47 Generation X 26-36 N Generation 18-25

5. How Workplace Demographics Are Evolving Smaller Elderly population will increase 80% by 2025, working age adults and children by only 15% Less Male Women will comprise 48% of the workforce by 2015 More Ethnically Diverse By 2025, nearly 40% of workers will be Hispanic, African-American, or Asian The U.S. Workforce of the future will be:

6. MARKET SIZE & SHARE 1983 –2003 (U.S. Imports) MARKET SIZE MARKET SHARE: PRODUCT TYPE MARKET SHARE: EXPORTING REGION

7. Market Size : U.S. Imports 1983- 2003 Average Annual Growth: 4% Compounded (Millions of Dollars) 146 266 280 380 318

8. Share By Product Type 1983-2003 (Stemware vs Giftware)

9. Share By Exporting Region 1983- 2003

10. Top 15 Exporters to United States (Millions of Dollars) 1988199319982003 Ireland72.855.571.770.4 Austria12.425.766.357.2 France63.258.080.946.8 Germany49.047.549.434.4 Czech Rep0.16.313.426.8 Poland5.015.923.418.3 Slovenia17.027.624.812.5 Italy6.89.311.710.6 SlovakiaN/A 4.410.1 Hungary1.62.66.1 China0.10.20.95.7 Sweden9.37.86.53.3 U.K6.35.86.32.2 Switzerland0.0 0.11.9 Japan7.45.04.01.8

11. Market Size:1998- 2003 MARKET SIZE LAST 6 YEARS U.S. IMPORTS- Custom’s Value

12. Market Size Last 6 Years U.S Imports Millions of Dollars % Change +4% +13% -5% -18% N/C -4% 380 429 409 333332 318

13. SALES BY RETAIL CHANNEL OF DISTRIBUTION 2000 – 2002 Retail Sales Crystal Products 2000 - 2003 Retail Sales Channel Of Distribution

14. 2000 - 2002 Crystal Retail Sales (MILLIONS OF DOLLARS) Source: HFN $762 $725 $711

15. 2000 – 2003 Crystal Retail Sales (millions of dollars) $762 $725 $711 $678 Source: HFN

16. SALES OF CRYSTAL VS. GLASS  U.S. Crystal & Glass Imports:  (1993-2003)  U.S. Crystal & Glass Imports:  Stemware  Giftware

17. U.S. Crystal & Glass Imports1993-2003 ( Millions of Dollars ) Lead Crystal Imports 1.3% Compound Annual Growth Glass Imports 8.3% Compound Annual Growth

18. Crystal & Glass Imports - Stemware 1993-2003 (Millions of Dollars) Lead Crystal Stemware 2% Compound Annual Growth Glass Stemware 10% Compound Annual Growth

19. Crystal & Glass Imports - Giftware1993-2003 ( Millions of Dollars ) Crystal Giftware 1% Compound Annual Growth Glass Giftware 7% Compound Annual Growth

20. STRATEGIC ISSUES Identify Consumer Wants & Needs Vs. “Consumer Lifestyles” Understand Changes In Shopping Patterns  Decline of Traditional Department Store  Emerging Channels of Distribution Reduced Consumer - Communication Reduced Consumer Choices Consumer Focus Vs. Retailer Focus Unique “Point Of View” Vs. Commodity Product (Price) Marketing

21. U.S. Department Store Death Spiral (Share of Non-Automotive Retail Sales)

22. Annual E-Commerce Retail Sales (U.S) Billions of Dollars E- Commerce will account for 5% of U.S Retail Sales by 2010

23. INDUSTRY DIRECTION Leaders Must Lead Aspirational, Life Enhancing Product Design & Quality As Strategic Imperatives Diverse Marketing Programs Required To Reach Consumers- Where They Now Shop “Brand Building” Must Include All Aspects of Marketing Equation:  Product  Price  Place  Promotion