Michael Anthony Jewelers, Inc. Announces $70 Million New Credit Facilities and Year-End Results MT. VERNON, N.Y., May 11 /PRNewswire-FirstCall/ -- Michael Anthony Jewelers, Inc. (MAJJ.PK), a leading marketer and manufacturer of gold jewelry, today announced that it has entered into new credit facilities amounting to $70 million through April 28, 2006. A gold consignment and working capital facility has been signed with a group of lenders, including ABN AMRO Bank, CommerzBank, JPMorgan Chase and Sovereign Bank. Michael Paolercio, Chief Executive Officer said, "We have had a long term relationship with this group of lenders and are pleased with their vote of confidence in Michael Anthony's ability to execute on its business plan. These new credit facilities will allow Michael Anthony to operate its manufacturing and distribution centers at optimum levels and support its customers' needs." Mr. Paolercio continued, "This support of our banks is confirmation that they recognize that Michael Anthony is one of the leading gold jewelry manufacturers in the United States and that they are pleased to continue our relationship by providing the financial resources that are necessary in order for Michael Anthony to achieve its marketing strategies." Mr. Paolercio also commented on the Company's performance for the fiscal year ended December 31, 2004, "After suffering losses on decreasing sales during the past two years, our operations showed considerable improvement with higher sales and a return to profitability." "Our gross profit margin for the year improved despite higher gold prices," Paolercio said, "as we continued to reorganize the Company by reducing our manufacturing operations in New York and shifting more production work to out Dominican factory. We reduced our selling, general and administrative expenses by consolidating and improving efficiencies throughout the Company." In conclusion, Mr. Paolercio stated, "We believe we have made considerable progress and our successful efforts provide us with energy to move forward. The road ahead, however, is not a smooth one. Escalating oil prices, higher interest rates and sagging consumer confidence combined with a sluggish retail climate are just a few of the formidable obstacles we face." Michael Anthony Jewelers is a leading designer, marketer and manufacturer of branded affordable fine jewelry and watches, whose customers include jewelry chain stores, discount stores, department stores, television shopping networks and wholesalers. MICHAEL ANTHONY JEWELERS, INC. Financial Highlights (in thousands) Year Ended 11 Months Ended December 25, 2004 December 27, 2003 Net Sales $112,500 $92,539 Cost of Goods Sold 90,026 75,483 Gross Profit on Sales 22,474 17,056 Selling, General and Administrative Expenses 18,857 18,465 Operating Income (Loss) 3,617 (1,409) Other Income (Expenses) Gold consignment fee (1,586) (1,162) Interest expense (1,162) (939) Interest income 18 11 Other income 446 509 Total Other Expenses (2,284) (1,581) Income (Loss) Before Income Taxes 1,333 (2,990) Income Tax Expense (Benefit) 538 (1,091) Net Income (Loss) $795 ($1,899) Except for historical information contained herein, the matters set forth in this news release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These uncertainties include general economic conditions, jewelry industry conditions, the seasonality of the Company's business, the retail sales environment, fluctuations in gold prices, the effects of competition and the success of new products and programs. DATASOURCE: Michael Anthony Jewelers, Inc. CONTACT: Michael W. Paolercio, Chief Executive Officer of Michael Anthony Jewelers, Inc., +1-914-699-0000 Ext. 290 Web site: http://www.michaelanthony.com/

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