OAKLAND, N.J., July 26 - RUSS BERRIE AND COMPANY, INC. (NYSE: RUS) today announced the acquisition of the business and assets of Sassy, Inc., a leading designer, manufacturer and distributor of innovative baby and juvenile products based in Grand Rapids, Michigan.

The Company paid approximately $45 million in cash for privately held Sassy. Additional consideration in the form of cash (not expected to exceed $5 million) may be paid based on future performance and other financial measurements. Sassy generated sales of approximately $44 million in the year ending December 31, 2001 and has experienced strong sales growth over the last five years. This growth is expected to continue and the acquisition is expected to be accretive to earnings in fiscal year 2002.

Russ Berrie, Chairman, commented, "Sassy's experienced management team coupled with their strong brand recognition in the baby products sector positions them for significant future growth."

In addition to the Sassy brand, the Company also gains distribution rights to baby soothing and comforting products from MAM Babyartikel GmbH, of Vienna Austria, a leader in this market. Sassy, Inc. will maintain its headquarters in Grand Rapids, Michigan, operating as an autonomous subsidiary of Russ Berrie and Company. Sassy's existing management team will remain in place after the transaction closes.