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Blyth Inc. Reports Higher 3rd Quarter Sales
Tupperware Revises 2005 Outlook
December Stock Watch

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Blyth Inc. Reports Higher
3rd Quarter Sales

Blyth Inc. (BTH-NYSE), a leading designer and marketer of home fragrance and home decor products, reported that net sales for the third quarter ended October 31, 2005 increased approximately 1 percent to $444.5 million, compared to $439.4 million a year earlier. Operating Profit for the quarter declined to $33.7 million, compared to $51.1 million for the prior year period. Net earnings for the quarter were $23.0 million, versus $30.2 million a year earlier. Diluted net earnings per share for the quarter were $0.56 per share, compared to $0.73 for the same period last year.

Net sales of $1,092.4 million for the nine months ended October 31, 2005 were approximately even with the $1,087.5 million reported for the same period a year ago. Operating profit for the nine months was $62.8 million, versus $104.3 million for the same period last year. Net earnings were $37.2 million, compared to $57.4 million for the prior year period. Diluted net earnings per share were $0.90, compared to $1.29 for last year's first nine months.

Third quarter net sales increased approximately 1 percent due to the addition of Edelman and Euro-Decor, acquired in September 2004. The company's third quarter operating margin was negatively impacted by soft sales across its three segments and by the mixshift resulting from the sales shortfall in the Direct Selling segment, which has a higher operating margin than the Wholesale and Catalog & Internet segments. Higher freight surcharges across Blyth's segments and substantial increases in commodity costs, such as for paraffin wax and for the raw materials required for production of Sterno® brand chafing fuel products, also had a significant negative impact on the company's operating margin.

In addition to the aforementioned factors that negatively impacted the company's third quarter operating margin, Blyth completed two small acquisitions during the quarter. The company acquired the remaining interest in Two Sisters Gourmet, a small party plan direct selling company that specializes in simple yet elegant gourmet entertaining products; and acquired Boca Java, an online specialty retailer of premium coffees, teas, cocoas and related accessories.

Robert B. Goergen, Blyth's Chairman of the Board and CEO, said, "Blyth's third quarter results reflect the impact of widespread reduced discretionary consumer spending in the Home Expressions category, as evidenced not only by our results, but also by those of most of our competitors and by many retailers, both in the United States and in Europe. Higher fuel and commodity prices versus last year affected Blyth's top line, reducing consumer discretionary purchasing power and reducing our gross margins due to substantial cost increases for our major commodities and product distribution. We also continue to invest in several organic strategic initiatives across our three business segments," Mr. Goergen continued. "Though this commitment impacts our operating margin in the near term, we believe that these new ventures present opportunities for growth and increased profitability over the long term."

In the Direct Selling segment, third quarter net sales declined 1 percent, from $156.1 million to $154.7 million for the same period last year. PartyLite's U.S. sales declined 7 percent versus last year's third quarter, which was substantially less than declines seen during the first half of the fiscal year. Sales of PartyLite's holiday product line increased significantly over last year's third quarter. Moreover, in PartyLite's Canadian market, sales increased 25 percent on the strength of the holiday product line. In Europe, PartyLite's sales increased 4 percent during the quarter due to strong holiday product line sales in most markets. Third quarter operating profit in the Direct Selling segment was $12.2 million, versus $19.3 million in the same period last year, the negative impact being due to lower volume in the U.S. market, increased freight surcharges, and expenses from PartyLite's North American and European National Sales Conferences.

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Tupperware Revises
2005 Outlook

Tupperware Brands (TUP-NYSE) recently updated its 2005 sales and earnings per share outlook and provided its initial 2006 and long-range sales and earnings guidance.

2005 Outlook
• Sales up 6 to 7 percent as reported and in local currency, including 4p.p. contribution from International Beauty (former Sara Lee Corporation's direct selling businesses)
• EPS at $1.02 - $1.07
• Decrease of 6 cents is due to purchase accounting amortization and additional re-engineering.
• After excluding items, EPS remains at $1.45 - $1.50 versus $1.41 last year

The company is in the final stages of negotiations with its former parent company regarding pre-spin-off tax liabilities. It expects to reach an agreement within the next three months, which may result in a significant income tax benefit.

2006 Outlook
• Sales $1.75 to $1.8 billion, including approximately $35 million negative impact from foreign currency
• Tupperware/BeautiControl sales up 2 to 3 percent in local currency
• International Beauty organic sales growth of 3 to 5 percent
• EPS of $1.41 - $1.51, including 10-cent negative impact from foreign currency
• After excluding items but including negative impact of foreign exchange, EPS will be up 10 to 20 percent to $1.65 - $1.75
• Tax rate estimated at 23 to 24 percent
• Capital expenditures about $70 million
• Unallocated expenses of $30 - $33 million
• Interest forecasted at $45 - $47 million
• Net cash provided by operating activities less capital expenditures at $85 - $90 million

Segment 2006 Outlook
European sales are forecast about even with 2005 in local currency. Continued growth in emerging and developing markets will be offset by a difficult comparison from high business-to-business sales in 2005, and a poor consumer spending environment in Germany. The return on sales is expected to remain at about 20 percent.

Asia Pacific and Latin America local currency sales and profit will be up low-single-digit percentages, reflecting continued growth in Mexico, Australia and the emerging markets, and weakness in Japan.

Tupperware North America sales are anticipated to be down by a single-digit percentage, with a lower loss than 2005.

BeautiControl North America sales are expected to increase in the teens on a percentage basis and generate an improved return on sales.

International Beauty local currency sales are expected to increase by a mid-single-digit percentage, with greater growth in profit from continuing good results in Mexico and a lower investment in Brazil.

Purchase Accounting
The company has not completed its purchase accounting. It currently believes that the only significant allocation of the purchase price to an amortizable intangible will be to the existing independent sales force. The company estimates the total amount of non-cash charges will be $60 million, and about $25 million of this amount will be amortized over the 12 months through November 2006. Decreasing amounts are expected to be amortized to expense over the following seven years.

Long-Term Outlook
. Sales up 5 to 7 percent beginning in 2007; increase from previous outlook of 5 percent annual growth due to International Beauty acquisition
. 3 to 4 percent from beauty expansion
. 1.5 to 2 percent from emerging market growth
. 0.5 to 1.0 percent from refreshing opportunity, party and products in developed markets
. Pretax ROS target of 8 to 9 percent
.Down from previous 10 percent due to higher interest expense

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