Oneida Shareholders Approve New Employee Stock Plans, Review Emergence From Challenging 2001 During Oneida Ltd. Annual Meeting


ONEIDA, N.Y., May 29, 2002 (PRIMEZONE) -- Stockholders at Oneida Ltd.'s (NYSE:OCQ) 121st Annual Meeting today approved the 2002 Stock Option Plan and authorized additional shares for the Employee Stock Purchase Plan, and also re-elected three members of the Board of Directors. In addition, Oneida Chairman and Chief Executive Officer Peter J. Kallet detailed the company's ability to persevere during exceptionally difficult 2001 conditions while preparing to capitalize on recovering markets in 2002.

During the meeting at the Oneida Community Mansion House, stockholders approved the reservation of 1.5 million shares for issuance under the 2002 Stock Option Plan, which encompasses officers and other key employees. They also amended the Employee Stock Purchase Plan, authorizing an additional 500,000 shares of common stock that will be available to employees at reduced prices. Stockholders re-elected the following members of the Board of Directors to three-year terms: J. Peter Fobare, Senior Vice President and General Manager, Consumer Retail and Direct Divisions of Oneida Ltd.; Whitney D. Pidot, Partner and Member of Executive Group, Shearman & Sterling Attorneys; and William M. Tuck, former President, Crouse-Hinds Division of Cooper Industries, Inc.

OVERCOMING HARDSHIPS OF 2001

Addressing shareholders, Mr. Kallet described the past year as "one of constant economic uncertainty, dramatic events and an extraordinary showing of patriotism" following September 11. Oneida felt an acute financial impact when an already soft economy plunged even further last September, forcing the company to enact further reductions in staffing and hours coupled with severe cost cuts overall.

"These hardships ... were enormous on our employees but we remained focused, we had a plan and through these trying times, we remained profitable and still made financial gains consistent with our internal initiatives," Mr. Kallet said. Those initiatives have included lowering inventory and Stock Keeping Units (SKUs); establishing new inventory turnover rates and cash management controls; implementing new marketing and sales programs; and placing a greater emphasis on providing solutions and value-added services to enhance customer satisfaction.

"These steps were all necessary to keep pace with our fast changing markets and to clearly separate Oneida from the competition," Mr. Kallet commented. He further outlined the progress within each of Oneida's three business units:

* The Consumer Division is rebounding with the help of an unaided 90% brand awareness, new patterns, packaging, point of sale displays and aggressive repositioning of its offerings. Bridal registries have risen for five straight months, and Oneida's housewares programs are improving across all markets. Mr. Kallet said the outlook for the rest of 2002 was reinforced at the recent New York Tabletop Show: "Our new products, plans and programs were well accepted and placed throughout the retail arena."

* The events of last September were especially disruptive for the Foodservice Division, as hotel occupancies plummeted, cruise ships were idled, business travel withered and airlines eliminated metalware products. However, after a difficult 2001, the division began a significant turnaround in April 2002. Citing industry optimism at the recent National Restaurant Association Show in Chicago combined with Oneida's additional new national contracts for restaurant chains, hotels and national distributors, Mr. Kallet said the Foodservice Division is "prepared to capitalize on the economic recovery as it unfolds through the remainder of the year."

* The International Division's continued emphasis on inventory and expense management has increased its profitability. Reflecting the division's success, in just 12 years it has created and established the second leading brand name in the international hotel tabletop market, Sant'Andrea.

SPECIAL THANKS TO EMPLOYEES

Mr. Kallet thanked Oneida's employees for their sacrifices over the past year, as they stood strong during economic difficulties while also donating over $13,000 for Sept. 11 disaster relief. He said: "our Board and all of management salute our employees for their selfless character and are grateful for their invaluable contributions throughout all of our operations during these trying times." Looking-forward, Mr. Kallet said employees' dedication has been coupled with refocused sales and marketing, logistics and manufacturing excellence, and design leadership to drive Oneida's cautiously optimistic outlook for 2002: "With continued increases in consumer confidence, Oneida is well positioned for continual improvement for the remainder of the year."

Oneida Ltd. is a leading manufacturer of stainless steel and silverplated flatware for both the consumer and foodservice industries, and a leading supplier of dinnerware to those industries as well. Oneida also is a leading supplier of a variety of crystal, glassware and metal serveware for the tabletop market.

Statements contained in this press release that state that certain results are "expected" or "anticipated" to occur, or otherwise state the company's predictions for the future, are forward-looking statements. These particular forward-looking statements and all other statements that are not historical facts, are subject to a number of risks and uncertainties, and actual results may differ materially. Such factors include, but are not limited to: general economic conditions in the Company's markets; difficulties or delays in the development, production and marketing of new products; the impact of competitive products and pricing; unforeseen increases in the cost of raw materials or shortages of raw materials; significant increases in interest rates or the level of the Company's indebtedness; major slowdowns in the retail, travel or entertainment industries; the loss of several of the Company's major customers; underutilization of the Company's plants and factories; and the amount and rate of growth of the Company's selling, general and administrative expenses



            

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