Russ Berrie and Company, Inc. Announces Declaration of Special Dividend, Earnings Guidance for 2004, the Appointment of New CEO

Russ Berrie and Company, Inc. Announces Declaration of Special
Dividend, Earnings Guidance for 2004, the Appointment of New CEO and the
Termination of its Exploration of Various Strategic Alternatives 


OAKLAND, N.J., April 12  /PRNewswire/ -- Russ Berrie and Company, Inc. ("RUSS")
today announced the declaration of a special dividend of $7 per share, earnings
guidance for 2004, the appointment of a new CEO and the termination of its
exploration of various strategic alternatives as previously announced in its
press release of November 5, 2003.

Because of the recently lowered tax on corporate dividends, the Board declared a
special dividend of $7 per share payable, May 28, 2004, to shareholders of
record, on May 14, 2004. The Company has a very high cash position and is debt
free.  As a result, the Company believes that after paying this special dividend
it can still meet very comfortably its growth needs and address acquisition
opportunities.  Additionally, the Company intends to maintain its current
quarterly dividend of $0.30 per share for the remainder of 2004.

The Company also reports that customer orders for the first three months of 2004
were significantly below the comparable prior year period. While it is difficult
to forecast the full year, at this early stage, diluted earnings per share for
the full year are not expected to exceed $0.80 compared to $1.68 in 2003.

Concurrently, the Company is pleased to announce the election of Andrew R. Gatto
to the Board of Directors and also his appointment as President and CEO, upon
commencement of his employment with the Company, which is anticipated to occur
after the Company's Annual Meeting of Shareholders on May 5, 2004, and prior to
June 1, 2004.  Mr. Gatto has beenSenior Vice President, Product Development,
Imports and Strategic Sourcing at Toys "R" Us, with over 25 years of very
relevant experience in the key functions that drive RUSS.

Mrs. Angelica Berrie, who has served as CEO since founder Russ Berrie's untimely
death, will continue as CEO until Mr. Gatto joins the Company and also has
become Vice Chairman of the Board.  Josh Weston, former CEO of Automatic Data
Processing, who had been serving as Acting Chairman of the Board has become
Chairman.  Mrs. Berrie is also President of the Russell Berrie Foundation, a
major New Jersey based charity.

Mr. Weston stated, "We are very pleased to have Andy join us at this significant
time in the Company's development.  We look forward to the benefit of his
extensive industry leadership and experience as the Company repositions itself
in the changing retail environment."  Mrs. Berrie added, "As RUSS moves forward
to maximize the unrealized potential of the Company, Andy's leadership, his
strengths in product development and sourcing, and the commitment of 1,600 RUSS
employees will drive the Company's growth."

Mr. Gatto stated, "I am delighted to join RUSS at this time, a solid Company
with rich history and even greater potential."

Finally, the Company also announced, that with the arrival of a new CEO, it has
decided to focus on its existing businesses and therefore has terminated
exploration of various strategic alternatives which was announced in its press
release of November 5, 2003.

Note:  This News Release contains certain forward-looking statements. Additional
written and oral forward-looking statements may be made by the Company from time
to time in Securities and Exchange Commission (SEC) filings and otherwise.  The
Private Securities LitigationReform Act of 1995 provides a safe-harbor for
forward-looking statements.  These statements may be identified by the use of
forward-looking words or phrases including, but not limited to, "anticipate,"
"believe," "expect," "intend," "may," "planned," "potential," "should," "will"
or "would".  The Company cautions readers that results predicted by
forward-looking statements, including, without limitation, those relating to the
Company's future business prospects, revenues, working capital, liquidity,
capital needs, interest costs and income are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
indicated in the forward-looking statements. Specific risks and uncertainties
include, but are not limited to, the Company's ability to continue to
manufacture its products in the Far East, the seasonality of revenues, the
actions of competitors, ability to increase production capacity, price
competition, the effects of government regulation, results of any enforcement
action by the People's Republic of China ("PRC") authorities with respect to the
Company's PRC operations, the resolution of various legal matters, possible
delays in the introduction of new products, customer acceptance of products,
issues related to the Company's new business ventures, changes in foreign
currency exchange rates, issues related to the Company's computer systems, the
current and future outlook of the global retail market, and other factors. 

DATASOURCE: Russ Berrie and Company, Inc.



CONTACT: John Wille, Vice President & CFO of Russ Berrie and Company,

Inc., [phone]; or General Information, Alison Ziegler of Financial

Relations Board/Weber Shandwick, [phone], for Russ Berrie and Company,

Inc.



Web site:  http://www.russberrie.com/ 

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