Tandy Brands AccessoriesTandy Brands Accessoriesis a Designer, Manufacturer and is a Designer, Manufacturer and Marketer of Fashion Accessories Marketer of Fashion Accessories

for Men, Women and Childrenfor Men, Women and Children

Tandy Brands AccessoriesTandy Brands Accessoriesis a Designer, Manufacturer and is a Designer, Manufacturer and Marketer of Fashion Accessories Marketer of Fashion Accessories

for Men, Women and Childrenfor Men, Women and Children

Investment HighlightsInvestment Highlights

Market Leader in a Fragmented IndustryMarket Leader in a Fragmented Industry National and Diverse Brand PortfolioNational and Diverse Brand Portfolio Compelling Growth OpportunitiesCompelling Growth Opportunities

– Strong Historic Growth Rate: 13-year Compounded Strong Historic Growth Rate: 13-year Compounded Annual Growth Rate of 17%Annual Growth Rate of 17%

Aggressive MarketingAggressive Marketing Strong, Stable Customer RelationshipsStrong, Stable Customer Relationships Strong Balance Sheet and Cash Flow Strong Balance Sheet and Cash Flow

GenerationGeneration Experienced Management TeamExperienced Management Team

Solid Sales GrowthThrough internal growth and acquisitions, TBAC has expanded into a leadership position within the fashion accessory industry. CAGR 17.19% over last 13 years.

Through internal growth and acquisitions, TBAC has expanded into a leadership position within the fashion accessory industry. CAGR 17.19% over last 13 years.

$27.4$27.4 $36.2$36.2$50.4$50.4

$68.6$68.6$83.9$83.9 $86.8$86.8

$102.6$102.6

$135.0$135.0

$178.4$178.4$187.7$187.7 $195.8$195.8

$205.8$205.8$224.5$224.5

19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000 20012001 20022002 20032003 20042004

$215.4$215.4

FacilitiesFacilitiesArlington, TexasArlington, Texas

Yoakum, TexasToronto, CanadaYoakum, TexasToronto, Canada

Yoakum, TexasDallas, TexasWest Bend, WisconsinToronto, Canada

Yoakum, TexasDallas, TexasWest Bend, WisconsinToronto, Canada

Arlington, TexasToronto, CanadaNew York, New YorkSan Francisco, CaliforniaHong Kong, ChinaNew Orleans, Louisiana

Arlington, TexasToronto, CanadaNew York, New YorkSan Francisco, CaliforniaHong Kong, ChinaNew Orleans, Louisiana

Arlington, TexasNew York, New York (2)Toronto, CanadaBentonville, ArkansasHong Kong, China

Arlington, TexasNew York, New York (2)Toronto, CanadaBentonville, ArkansasHong Kong, China

ManufacturingManufacturing

DistributionDistribution

Merchandising OfficesMerchandising Offices

ShowroomsShowrooms

Corporate HeadquartersCorporate HeadquartersCanada

United States

China

Canada

United States

China

SourcingSourcingTandy Brands Accessories, Inc. operates two belt manufacturing facilities: One in Yoakum, Texas, andanother in Toronto, Canada. The balance of the corporations’ finished goods are imported from a wide variety of global sources in Asia, South America, Europe and India.

Tandy Brands Accessories, Inc. operates two belt manufacturing facilities: One in Yoakum, Texas, andanother in Toronto, Canada. The balance of the corporations’ finished goods are imported from a wide variety of global sources in Asia, South America, Europe and India.

IndiaIndia

AsiaAsia

SouthAmericaSouth

America

EuropeEurope

Retail DistributionRetail DistributionTBA’s strategic objective of “across the board” selling has resulted in the successful placement of TBA fashion products into nearly every type and size of retail operation including:

TBA’s strategic objective of “across the board” selling has resulted in the successful placement of TBA fashion products into nearly every type and size of retail operation including:

E-Commerce WebsiteE-Commerce Website

Specialty ChainsSpecialty Chains

National ChainsNational Chains

Military ExchangesMilitary Exchanges

Off-Price StoresOff-Price Stores

Outlet StoresOutlet Stores

Mass MerchantsMass Merchants

Golf Pro ShopsGolf Pro Shops

Office SupplyOffice Supply

Wholesale ClubsWholesale Clubs

Drug StoresDrug Stores

Shoe StoresShoe Stores

TV ShoppingTV Shopping

CatalogsCatalogs

Uniform StoresUniform Stores

Ind. Specialty StoresInd. Specialty Stores

SupermarketsSupermarkets

Sporting GoodsSporting Goods

Department StoresDepartment Stores

Total SalesTotal Sales

$215.4 Million in Fiscal 2004$215.4 Million in Fiscal 2004

52.7% 52.7% 47.3% 47.3%

Men'sMen's Women'sWomen's

$10.4 $10.4 MilMil

$6.8 Mil$6.8 Mil $18.3 Mil$18.3 Mil$17.0 Mil$17.0 Mil

$45.3 Mil$45.3 Mil

$117.6 Mil$117.6 Mil

BeltsBelts54.654.6%%

OtherOther4.8%4.8% HandbagsHandbags

8.4%8.4%

SocksSocks7.9%7.9%

Small LeatherSmall LeatherGoodsGoods21.1%21.1%

ColdColdWeatherWeather

3.2%3.2%

Fiscal 2004Product Line Sales

Fiscal 2004Product Line SalesMen’s and Women’s Comparison ($215.4 Million)Men’s and Women’s Comparison ($215.4 Million)

Small LeatherSmall LeatherGoodsGoods

16%16%

OtherOther7%7%

BeltsBelts77%77%

Small LeatherSmall LeatherGoodsGoods

27%27%HandbagsHandbags

18%18%

BeltsBelts30%30%

SocksSocks17%17%

ColdColdWeatherWeather

6%6%

OtherOther2%2%

Women’s 47.3% Women’s 47.3% ($101.8 Mil.)($101.8 Mil.)

Men’s 52.7%Men’s 52.7%

($113.6 Mil.)($113.6 Mil.)

TBA’s Key Retail PartnersTBA’s Key Retail Partners

Independent Specialty & Golf Pro ShopsIndependent Specialty & Golf Pro Shops

Mass MerchantsMass MerchantsNational ChainsNational ChainsDepartment StoresDepartment Stores SearsSears

(U.S. & Canada)(U.S. & Canada) JCPenneyJCPenney

(U.S. & Mexico)(U.S. & Mexico) Mervyn’sMervyn’s AAFESAAFES StructureStructure Stein MartStein Mart TJ MaxxTJ Maxx Marshall’sMarshall’s Men’s WearhouseMen’s Wearhouse Moores (Canada)Moores (Canada)

WalWalMartMart(U.S., Canada & (U.S., Canada & Mexico)Mexico)

TargetTarget ShopKo/PamidaShopKo/Pamida MeijerMeijer Fred MeyerFred Meyer ZellersZellers

(Canada)(Canada)

7,000+Accounts7,000+Accounts

NordstromNordstrom Dillard’sDillard’s May Co.May Co. Federated/Macy’sFederated/Macy’s BelkBelk Saks, Inc.Saks, Inc. Dayton HudsonDayton Hudson Kohl’sKohl’s StageStage Boscov’sBoscov’s Gottschalk’sGottschalk’s Bon-TonBon-Ton The Bay (Canada)The Bay (Canada)

Sales and ServiceSales and Service

Sales

Service

Growth PotentialGrowth Potential

BeltsPersonal Leather GoodsBeltsPersonal Leather Goods $420$420

290290$420$420

290290

Men’s & Boys’Men’s & Boys’

Women’sWomen’s

Estimates of accessory industry size in wholesale dollars.(In millions)Estimates of accessory industry size in wholesale dollars.(In millions)

* Does not include Canada* Does not include Canada

BeltsPersonal Leather GoodsHandbagsHats/Hair Access/SocksCold Weather

BeltsPersonal Leather GoodsHandbagsHats/Hair Access/SocksCold Weather

340340305305

2,2002,200532532226226

$4,333$4,333

340340305305

2,2002,200532532226226

$4,333$4,333 ****

TBAC Market Share

TBAC Market Share

20%20%9%9%

20%20%9%9%

9%9%9%9%1%1%4%4%3%3%

9%9%9%9%1%1%4%4%3%3%

Fiscal 2004 Brand SalesFiscal 2004 Brand Sales

ProprietaryBrands34.4%

ProprietaryBrands34.4%

LicensedBrands

8.1%

LicensedBrands

8.1%

Private Label Brands57.5%

Private Label Brands57.5%

Fiscal 2004 SalesBy Distribution ChannelFiscal 2004 SalesBy Distribution Channel

Department Store28.6%

Department Store28.6%

Specialty Retail17.2%

Specialty Retail17.2%

Mass Merchant54.2%

Mass Merchant54.2%

Brands by Retail SegmentBrands by Retail Segment

LicensedLicensedLicensedLicensed PrivatePrivatePrivatePrivateProprietaryProprietaryProprietaryProprietary