Tandy Brands Provides Update on Current Events

Tandy Brands Provides Update on Current Events

  oProvides Update on Results Achieved from March 18^th Restructuring Plan
  oAnnounces New Credit Facilities

DALLAS, July 26, 2013 (GLOBE NEWSWIRE) -- Tandy Brands Accessories, Inc.
(Nasdaq:TBAC) today provided an update on the results achieved from its
restructuring plan announced March 18^th and announced the execution of new
credit facilities.

"We learned some tough lessons in fiscal year 2013. Today we are pleased to
announce that we have not only executed our previously announced restructuring
plans, but we have also finalized a new capital structure, both of which we
expect will improve our competitive and financial position as we begin fiscal
2014," said Rod McGeachy, President and Chief Executive Officer. "Furthermore,
I am pleased that we were able to accomplish this with no equity dilution to
our current shareholders," continued McGeachy.

Update on Restructuring Plan

The restructuring plan, announced on March 18, 2013, was designed to increase
profitability for the Company, improve working capital efficiency, improve
customer service and reduce overhead. The key elements of the plan included:

  *Eliminating low-volume products
  *Emphasizing licensed products and high volume private label products
  *Reducing the amount of risk associated with the Gifts business
  *Reducing corporate employee headcount by approximately 32%
  *Closing or downsizing four of eight leased facilities
  *Outsourcing and relocating Gifts distribution from Dallas to a third-party
    provider in California
  *Exiting development efforts and accelerating recognition of future
    expenses associated with non-core brands

The Company has successfully reduced the risk profile associated with its
Gifts business, which was the primary source of the fiscal 2013 financial
issues, by significantly reducing product return privileges, limiting margin
agreements with retailers, locking freight rates, exiting underperforming
products, and relocating and outsourcing its Gifts distribution function.

"We think the steps we have taken have effectively reduced the risk associated
with our Gifts business and believe the profitability of this segment will be
greatly improved in fiscal 2014," said McGeachy.

Furthermore, the company confirmed today that it had successfully executed all
of the headcount reductions and facility consolidations as previously

The Company also announced the elimination of the Chief Restructuring Officer
("CRO") role. On March 8, 2013, the Company appointed John Little from
Deloitte Financial Advisory Services LLP as a consultant filling the CRO role
and performing the following duties under the CRO engagement:

  oEvaluating capital structure alternatives and identifying additional
    sources of financing
  oDeveloping and executing plans to improve liquidity against existing
  oExecuting profitability improvement initiatives 
  oCommunicating with select key stakeholders

"John and the CRO role added value to our organization during a difficult
time," said McGeachy."During the past four months we've successfully
maintained service to our retailers, executed our restructuring initiatives,
and closed our new credit facilities.We thank John for his contributions,"
said McGeachy.

Senior Credit Facility with Salus Capital Partners, LLC

On July 24th, the Company entered into a new credit agreement with Salus
Capital Partners, LLC, to provide senior financing up to $29 million.The
facility is comprised of a revolving credit facility in the amount of $27.5
million, and a term loan facility in the amount of $1.5 million, and expires
in July 2015 (the "Credit Facility").Under the Credit Facility, borrowings
bear interest at either the base rate or LIBOR, plus an additional percentage
for each of the revolver and theterm loan.

The Credit Facility is secured by a first priority lien on substantially all
of the assets of the Company and its subsidiaries, excluding certain goods and
related accounts receivable financed pursuant to the King Trade Facility (see
"Credit Facility with King Trade Capital" below), for which Salus will have a
second priority lien.The Credit Facility contains covenants which address
minimum consolidated EBITDA requirements, account concentration limitations,
budgeted expenses and accounts payable to inventory ratios.The Credit
Agreement also provides for customary representations, warranties, affirmative
covenants, negative covenants and events of default.

The Company used the proceeds of the initial advance under the Credit Facility
to repay indebtedness owing to Wells Fargo and to pay fees and expenses
incurred in connection with the Credit Agreement. The Company will use the
proceeds of future advances under the Credit Agreement for working capital

Credit Facility with King Trade Capital

On July 24th, the Company entered into a Master Agreement ("Master Agreement")
with EPK Financial Corporation, d/b/a King Trade Capital ("King Trade"), that
provides for a purchase and sale facility (the "King Trade Facility") with
$11.5 million of maximum aggregate amount permitted to be outstanding.The
King Trade Facility is expected to provide the Company with financing to
purchase certain inventory related to the Company's holiday 2013 seasonal
gifts business.

The King Trade Facility is secured by (i) a first priority lien on the goods
and related accounts receivable financed by the Company under the King Trade
Facility, and (ii) a second priority lien on substantially all other assets of
the Company. The amounts payable under the King Trade Facility bear interest
at varying rates which depend primarily on the length of time such amounts are
outstanding, the amount advanced for each transaction and the aggregate of all
amounts advanced.

The Master Agreement contains representations and warranties and covenants
that are customary for such financing arrangements.


"Although we experienced choppy waters in fiscal 2013, our organization is
stronger and we are excited about starting fiscal 2014 with new credit
facilities, additional liquidity, no equity dilution and with our
restructuring actions completed," said McGeachy.

About Tandy Brands

Tandy Brands is a leading designer and marketer of branded men's, women's and
children's accessories, including belts, gifts, small leather goods and bags.
Merchandise is marketed under various national as well as private brand names
through all major retail distribution channels.

Safe Harbor Language

Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The Company has based
these forward-looking statements on its current expectations about future
events, estimates and projections about the industry in which it operates.
Forward-looking statements are not guarantees of future performance. Actual
results may differ materially from those suggested by these forward-looking
statements as a result of a number of known and unknown risks and
uncertainties that are difficult to predict, including, without
limitation,the Company'sability to successfully capitalize onits
restructuring initiatives, the Company's ability to service its debt, its
ability to comply with the covenants contained in its new financing
arrangements, general economic and business conditions, competition in the
accessories and gifts markets, acceptance of the Company's product offerings
and designs, issues relating to distribution, the termination or non-renewal
of any material licenses, the Company's ability to maintain proper inventory
levels, and a significant decrease in business from or loss of any major
customers or programs. Those and other risks are more fully described in the
Company's filings with the Securities and Exchange Commission. The
forward-looking statements included in this release are made only as of the
date hereof. Except as required under federal securities laws and the rules
and regulations of the United States Securities and Exchange Commission, the
Company does not undertake, and specifically declines, any obligation to
update any of these statements or to publicly announce the results of any
revisions to any forward-looking statements after the distribution of this
release, whether as a result of new information, future events, changes in
assumptions, or otherwise.

CONTACT: Tandy Brands Accessories, Inc.
         Rod McGeachy
         President and Chief Executive Officer
         Investor Relations
         Chuck Talley
         Chief Financial Officer
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