EAST RUTHERFORD, NJ - Kid Brands, Inc. (NYSE: KID) is pleased to announce that it has refinanced its existing senior credit facility, as described below.

Consistent with the Company’s previously announced plans to refinance its credit facility, on December 21, 2012, the Company and specified domestic subsidiaries executed a Credit Agreement with Salus Capital Partners, LLC, as Lender, Administrative Agent and Collateral Agent. The Salus Credit Agreement provides for an aggregate maximum $80.0 million revolving credit facility, consisting of: (i) a revolving $60.0 million tranche (the “Tranche A Revolver”); and (ii) a $20.0 million first-in last-out tranche (the “Tranche A-1 Revolver”). The Tranche A Revolver is subject to borrowing base limitations based on a specified percentage of eligible accounts receivable and eligible inventory, net of specified reserves. The Tranche A-1 Revolver is subject to a specified cap and to borrowing base limitations based on the lesser of: (i) a specified percentage of the fair market value of specified registered eligible intellectual property, net of reserves; and (ii) the aggregate commitments for the Tranche A-1 Revolver at such time ($20.0 million at the time of closing). Outstanding loans under the Salus Credit Agreement are due and payable on December 21, 2016 (subject to early termination provisions).

In connection with the execution of the Salus Credit Agreement, all outstanding obligations under the Company’s previous credit agreement (approximately $55.3 million) were repaid using proceeds therefrom. As a result of such refinancing, the Company anticipates that it will write off, in the fourth quarter of 2012, approximately $1.0 - $1.5 million in unamortized deferred financing costs originally incurred in connection with the terminated credit facility.

Guy Paglinco, Chief Financial Officer of the Company, commented, “We are very pleased with this new credit facility, which provides Kid Brands with improved financial flexibility, as well as with the relationship we have established with Salus Capital. We believe that their understanding of our business and market segment will be a valuable asset to Kid Brands.”

East Wind Securities, LLC acted as financial advisor to the Company in connection with the refinancing.

The Company intends to file a Current Report on Form 8-K describing the terms of the Salus Credit Agreement in detail within the prescribed timeframe.

Kid Brands, Inc.

Kid Brands, Inc. and its subsidiaries are leaders in the design, development and distribution of infant and juvenile branded products. Its design-led products are primarily distributed through mass market, baby super stores, specialty, food, drug, independent and e-commerce retailers worldwide.

The Company’s current operating subsidiaries consist of: Kids Line, LLC; LaJobi, Inc; Sassy, Inc.; and CoCaLo, Inc. Through these wholly-owned subsidiaries, the Company designs, manufactures (through third parties) and markets branded infant and juvenile products in a number of complementary categories including, among others: infant bedding and related nursery accessories and décor, food preparation and nursery appliances, and diaper bags (Kids Line® and CoCaLo®); nursery furniture and related products (LaJobi®); and developmental toys and feeding, bath and baby care items with features that address the various stages of an infant’s early years (Sassy®). In addition to the Company’s branded products, the Company also markets certain categories of products under various licenses, including Carter’s®, Disney®, Graco® and Serta®. Additional information about the Company is available at www.kidbrands.com.