Shelburne, VT – October 14, 1999 --The Vermont Teddy Bear Company® (NASDAQ: BEAR) today announced the appointment of Robert H. Hamilton to its Board of Directors. Mr. Hamilton’s appointment brings the total number of Board Members to eight.

“Mr. Hamilton is a master at bringing together the technical and strategic aspects of marketing,” said Board Chairman Fred Marks. “His insight and experience will be invaluable to us as we supplement our media advertising campaigns with marketing programs to increase repeat sales from existing customers.”

Hamilton is the founder and CEO of Core Data LLC, a company that specializes in data base analysis, customer profiling and technical marketing. He was also the founder and until recently, the CEO of Core Group Inc., a consulting firm to Fortune 500 companies with a focus on strategic and marketing planning, and new product development. He is responsible for pioneering several industry firsts including the first loyalty programs for credit cards, the first frequent flyer program for the airline industry, and the first frequent purchase program for specialty retailing. Mr. Hamilton also founded several entrepreneurial ventures that developed into successful businesses including Telnet, Inc. an in-bound and out-bound telecommunications customer service support center, and Gift Certificate Center, Inc. the first and only US Company to patent a “real time” electronic gift certificate delivery program for national providers.

Mr. Hamilton’s business headquarters is in Minneapolis, Minnesota. He also has a residence in the town Chimney Point, Addison County, Vermont.

The Vermont Teddy Bear Company® is the largest maker of hand-crafted teddy bears in North American, making more than 250,000 bears annually out of its northern Vermont factory and selling them via its Bear-Gram® delivery service of factory store. To place an order, customers call 1-800-829-BEAR or log onto the Company’s popular site www.VermontTeddyBear.com. Each Bear-Gram gift comes with a customized bear, personalized greeting card and candy treat, all packaged in a bright gift box complete with airhole. With more than 100 different bear designs and outfits, and embroidery personalization from which to choose, there’s a perfect bear to send for every reason and season.