|450 SEVENTH AVENUE, SUITE 509|
|NEW YORK, NY 10123|
The Wynnefield Group, the largest stockholder in Crown Crafts, Inc. (NASDAQ: CRWS), today sent the following letter to Crown Crafts stockholders in connection with the Company’s August 10, 2010 annual meeting of stockholders:
July 19, 2010 VOTE THE ENCLOSED GOLD PROXY CARD TODAY! Dear Fellow Crown Crafts Stockholder: We are writing to urge you to take action to protect your investment in Crown Crafts stock from a management-endorsed Board majority who seems more interested in protecting the status quo than growing the value of your investment. We are the Wynnefield Group, Crown Crafts’ largest stockholder, owning 1,573,573 shares or approximately 17% of the Company’s outstanding shares. As Crown Crafts stockholders for more than 14 years, we have had enough. We are nominating two highly qualified independent directors, Jon C. Biro and Melvin L. Keating, to the Company’s Board of Directors. Although they will only constitute a minority of the Board, our Nominees are committed to working constructively to design and implement both a strategic plan and the corporate governance changes necessary to increase value for all stockholders. Vote the GOLD proxy card for nominees who will work to enhance value for all stockholders and not merely serve the interests of management and the management-endorsed Board majority. THE CURRENT BOARD AND MANAGEMENT ARE RUNNING THE COMPANY FOR THEIR OWN BENEFIT…TO THE DETRIMENT OF STOCKHOLDERS While the Board awards itself and management with lavish compensation and severance arrangements, Crown Crafts’ stock has underperformed. The Company faces pressing business and governance issues which the management-endorsed Board majority has failed to address. Unless you act, we believe stockholders face potentially even more lost value.