TO: All Lenox Group Inc. Associates

FROM: Marc Pfefferle

RE: Election of New Director to Lenox Group Inc Board

DATE: October 3, 2007

I am pleased to announce that the Board of Directors has elected Cesar A. Baez to serve as a director of the Board and as a member of the Audit Committee and Executive Committee. Mr. Baez replaces Conrad Bringsjord as the Clinton Group designee on the Board. Mr. Bringsjord has left the Clinton Group, and, as a result of this departure, he has also resigned from the Lenox Board.

Mr. Baez is the Founding and Managing Partner of Centinela Capital Partners, LLC. He has more than 27 years of senior executive experience in private equity, asset management, media and investment banking.

Prior to founding Centinela Capital Partners, Mr. Baez served as Head of Strategy, Institutional Business Development and Private Equity for Deutsche Bank Alternative Investments, a division of Deutsche Bank Asset Management. Prior to joining Deutsche Bank, Mr. Baez was Head of Alternative Investments for the State of New Jersey Investment Division, a $72 billion defined benefit plan where he established the first alternative investment program in the pension fund’s history.

We are pleased to welcome Mr. Baez to the Lenox Board. With his strong financial and investment background, he will be a great asset to our Company as we strive to build shareholder value.