REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders of
Lillian Vernon Corporation:
In our opinion, the accompanying consolidated balance sheets and the related consolidated
statements of operations, stockholders' equity, and cash flows present fairly, in all material
respects, the financial position of Lillian Vernon Corporation and its subsidiaries (the
"Company") at February 23, 2002 and February 24, 2001, and the results of their operations and
their cash flows for each of the three years in the period ended February 23, 2002, in conformity
with accounting principles generally accepted in the United States of America. These financial
statements are the responsibility of the Company's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our audits of these
statements in accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
As discussed in Note 1 of the Notes to the Consolidated Financial Statements, as of February 27,
2000, the Company changed its method of accounting for revenue recognition as a result of the
adoption of the provisions of Staff Accounting Bulletin No. 101, "Revenue Recognition".
/s/ PRICEWATERHOUSECOOPERS LLP
New York, New York
April 22, 2002
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