Business Highlights

Successful, Proven Format

• Proven Kitchen Collection format has helped Kitchen Collection become the leading specialty retailer of kitchen and related products in outlet malls
• Focus on wide variety of specialty kitchenware delivers above-average margins
• In August 2006, Kitchen Collection acquired the assets, including the name, of Le Gourmet Chef, Inc., which expanded Kitchen Collection’s presence in outlet and traditional malls
• As of December 31, 2011, Kitchen Collection had a total of 337 stores; 276 Kitchen Collection^®  stores and 61 Le Gourmet Chef^®  stores

Traditional Mall Format

• Stores located in traditional malls focus on a wide range of nationally-branded specialty housewares
• 113 traditional mall Kitchen Collection^® stores are operating as of January 31, 2012
• 12 traditional mall Le Gourmet Chef^® stores are operating as of January 31, 2012
• Potential market of over 500 traditional enclosed malls nationwide

Continuous Improvement

• Kitchen Collection has developed specific approaches over time to improve the three main retail performance drivers
• Number of customer visits
• Percentage of visitors who purchase
• Average dollar amount of sales
• Kitchen Collection continually tests and implements new approaches to further improve these key drivers

Disciplined Overhead Management

• Headquarters staff provides merchandising expertise, accounting, information systems and oversight with a focus on maintaining a low cost culture
• Small number of full-time employees at store level

Leading Brand Names

• Top brands sold by Kitchen Collection^® and Le Gourmet Chef^® include Kitchen Aid, OXO, Cuisinart, Keurig, Wilton, Calphalon, Henckels and Wusthof
• Kitchen Collection sells a wide range of branded housewares including Hamilton Beach^® and Proctor Silex^® kitchen electrics, including close-out and excess inventory items from Hamilton Beach Brands, as well as Hamilton Beach^®- and Proctor Silex^®-branded non-electric gadgets, bakeware and cookware

Efficient Supply Chain

• In 2011, to improve distribution operations and increase efficiencies, Kitchen Collection combined its two distribution centers into one larger facility
• Many high-volume products ship directly to store locations from U.S.-based vendors