The Kitchen Collection Inc.: NACCO, Subsidiaries

Kitchen Collection

Program Overview

Programs for Disciplined Cost Control

Main Program Areas	Program Objective	Primary Financial Impact	Type of Program	Timing of Benefits
Corporate Expense Management	Integration of Le Gourmet Chef and maintain a lean, efficient corporate operation	SG&A and operating margin	Profitability	2009
Store Expense Management	Manage store rental and labor costs more effectively	SG&A and operating margin	Profitability	Ongoing
Continuous Product Cost Management	Source and manage vendors more efficiently and effectively	SG&A and operating margin	Profitability	Ongoing
Logistics Efficiency	Improve warehouse operations to increase capacity and throughput and decrease operating costs	SG&A and operating margin	Profitability	Ongoing

Programs to Ensure Unique, Affordable Products

Main Program Areas	Program Objective	Primary Financial Impact	Type of Program	Timing of Benefits
Innovative Products and Merchandising	Improve selection and display of products with highest sales potential on Kitchen Collection^® and Le Gourmet Chef^® store shelves	Revenue enhancement	Growth	Ongoing
Hamilton Beach^® Brand Leverage	Enhance availability and selection of Hamilton Beach^® and Proctor Silex^® branded products	Revenue enhancement	Growth	Ongoing
Economic Value Income	Maximization of return per cubic foot of retail space	Gross margin, SG&A and operating margin	Profitability	Ongoing

Programs for Store Improvement & Expansion

Main Program Areas	Program Objective	Primary Financial Impact	Type of Program	Timing of Benefits
Outlet Mall Format Initiatives	Identification of new outlet mall locations through mall profiling and segmentation analysis	Revenue and margin enhancement	Growth	Ongoing
Traditional Mall Format Initiatives	Increase the number of permanent traditional mall stores	Revenue enhancement	Growth	2009 and Ongoing
Internet Format Initiative	Increase sales from the Kitchen Collection^® and Le Gourmet Chef^® websites	Revenue enhancement	Growth	Ongoing

Certain statements on this page that are not historical facts are forward-looking statements. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the posting of this data to the website. Click here to see the Company's full Forward-Looking Statement Disclaimer/Risks and Uncertainties Statement.