EXHIBIT 99.1
| For Immediate Release | July 2, 2008 |
Crown Crafts, Inc. and Wynnefield Capital Reach Agreement
Regarding Voting and Governance Matters
Regarding Voting and Governance Matters
Gonzales, Louisiana — Crown Crafts, Inc. (the “Company”) (NASDAQ-CM: CRWS) and Wynnefield Partners
Small Cap Value, L.P. and its affiliates (collectively, “Wynnefield”) today announced that they
have reached an agreement regarding certain voting and governance matters. Under the agreement,
Wynnefield’s designee, Joseph Kling, has been appointed to serve on the Company’s Board of
Directors, effective immediately, and will be included in the Company’s 2008 proxy statement as a
nominee for election to the Board at the Company’s 2008 annual meeting of stockholders, and
Wynnefield has agreed not to solicit proxies in connection with the Company’s 2008 and 2009 annual
meetings and to vote all its shares in support of the Board’s director nominees and to vote its
shares in the same proportion as the votes cast by stockholders not affiliated with the Company
with respect to all other matters at such meetings. The Company’s 2008 annual meeting will be held
on August 12, 2008.
The Company’s agreement with Wynnefield also permits Wynnefield to acquire, in the aggregate, up to
20% of the outstanding shares of the capital stock of the Company between July 1, 2008 and the
earlier of August 31, 2009 and the date immediately following the date of the Company’s 2009 annual
meeting of stockholders. At the time of the execution of the agreement, Wynnefield owned, in the
aggregate, 1,463,325 shares of the Company’s Series A common stock, representing approximately
15.6% of the Company’s outstanding shares.
Mr. Kling, 78, is currently, and has been since 1989, a consultant to various companies in the toy
industry and the infant and juvenile apparel industries, providing consulting and advisory services
to companies in connection with mergers and acquisitions as well as acquisitions of intellectual
property licenses and rights. Since April 1991, Mr. Kling has served as president and chief
executive officer of MLJ, Inc., his privately-held consulting company. From 1988 to 2007, Mr.
Kling served as a member of the board of directors of Russ Berrie and Company, Inc., an NYSE-listed
company and a leader in the gift and juvenile products industry. He also served as a member of the
compensation committee and audit committee of the board of directors of Russ Berrie. From 1985 to
1989, Mr. Kling also served as Chief Executive Officer of View-Master-Ideal, a toy manufacturer.
In addition, on July 1, 2008, the Company was informed that Dr. James A. Verbrugge has decided that
he will not stand for re-election at the Company’s 2008 annual meeting so that he may devote more
time to other matters. Dr. Verbrugge has served as a director of the Company since July 2001 and
is a member of the Audit Committee. Dr. Verbrugge will continue to serve as a director and a
member of the Audit Committee until the expiration of his term at the 2008 annual meeting.
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and distributes infant and toddler consumer products, including
bedding, blankets, bibs, bath items and accessories. Its operating subsidiaries include Hamco,
Inc. in Louisiana and Crown Crafts Infant Products, Inc. in California. Crown Crafts is America’s
largest