The Wynnefield Group, the largest stockholder in Crown Crafts, Inc., today sent the following letter to Crown Crafts stockholders in connection with the Company's August 10, 2010 annual meeting of stockholders: WYNNEFIELD GROUP450 SEVENTH AVENUE, SUITE 509NEW YORK, NY 10123 July 29, 2010 CROWN CRAFTS BOARD REACTS TO PRESSURE FROM WYNNEFIELD DON’T BELIEVE “WINDOW DRESSING” BY CROWN CRAFTS’ BOARD AS IT REACTS TO PRESSURE FROM WYNNEFIELD VOTE THE GOLD PROXY CARD FOR TRUE AND LASTING CHANGE AT CROWN CRAFTS Dear Fellow Crown Crafts Stockholder: Over the past several weeks, we sent you materials outlining why, as Crown Crafts’ largest stockholder with approximately 17% of the Company’s outstanding shares, we are nominating two highly qualified independent directors, Jon C. Biro and Melvin L. Keating, to the Company’s Board of Directors. As you continue to review our proxy materials carefully, we urge you to vote the GOLD proxy card for nominees who will work to build and enhance value for all stockholders. CROWN CRAFTS PROMISES CHANGE….JUST LIKE THEY DID IN 2007 AND 2008 WYNNEFIELD FEARS THE BOARD WILL REVERT TO THE STATUS QUO AS THEY HAVE DONE BEFORE Now that the management controlled Board of Crown Crafts is in real danger of being unable to preserve the status quo we have seen one press release after another announcing change at Crown Crafts in order to get your vote. This is more total communication from Crown Crafts on governance issues than we have seen in years. DON’T BE FOOLED AGAIN! Crown Crafts promised these changes in 2007 and 2008, but as soon as these elections were over the Board reverted back to the status quo and worse for non-Board/management stockholders. It is clear to us that without the presence of our two nominees on the Board history will repeat itself. Before Wynnefield’s campaign Crown Crafts’ management controlled Board ignored stockholder’s calls for: a true strategic examination effort – including an independent valuation of the Company, attending more conferences to grow the stockholder base and increase liquidity, enact corporate governance changes and the removal of the poison pill. Since our campaign began, only a month ago, Crown Crafts has put out no less than 6 press releases purporting to address these issues in order to save their jobs – THESE DESPARATE ATTEMPTS BY THE BOARD SHOULD CONFIRM THE VALUE OF WYNNEFIELD’S EFFORTS AND REQUIRES ITS CONTINUED PRESENCE! Wynnefield’s nominees need to be on the Board! This management controlled Board and management itself have a long history of promising one thing when pressured by stockholders in the heat of a proxy contest and then failing to deliver after the election. Examples from the 2008 campaign include:
VOTE FOR JON C. BIRO AND MELVIN L. KEATING ON THE GOLD PROXY CARD TODAYIf you have any questions or need additional information, please feel free to contact our proxy solicitor Okapi Partners at (877) 285-5990 (Toll-Free) or (212) 297-0720 (Call Collect). Thank you for your support. Very truly yours, Wynnefield Partners Small Cap Value, LP ABOUT WYNNEFIELD GROUP The Wynnefield Group is Crown Crafts' largest stockholder, holding approximately 17% of the Company's outstanding common stock. Established in 1992, the Wynnefield Group includes several affiliates of Wynnefield Capital, Inc., a value investor specializing in U.S. small cap situations that have company- or industry-specific catalysts.