"The warehouse management and distribution module was the
primary source of the problems encountered with the implementation of
the new ERP system last year and, as a result, transitioning this
component of our systems was our first priority.

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----Enesco Group, Inc.A.

Enesco Group, Inc. Accordingly , you should not rely on these
forward-looking statements as a prediction of actual future results .

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Enesco Announces Credit Facility Covenant Default

that it was
not in compliance with its minimum EBITDA covenant as of April 30,
2005, which was predominantly due to non-cash accruals related to the
timing of the execution of Enesco's agreement with Precious Moments,
Inc. Such statements are
subject to various risks, uncertainties and other factors, which could
cause actual results to vary materially from those anticipated,
estimated, expected or projected.
In addition, the Company operates in a continually changing
business environment and does not intend to update or revise the
forward-looking statements contained herein, which speak only as of
the date hereof .

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In light of these risks and uncertainties, the
forward-looking statements contained herein may not occur and actual
results could differ materially from those set forth herein.

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is a world leader in the giftware, and home and
garden decor industries.
Accordingly, you should not rely on these forward-looking statements
as a prediction of actual future results.

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Important factors that may cause
actual future events or results to differ materially and adversely
from those described in the forward-looking statements include, but
are not limited to: the Company's success in developing new products
and consumer reaction to the Company's new products; the Company's
ability to secure , maintain and renew popular licenses, particularly
our licenses for Precious Moments, Cherished Teddies , Heartwood Creek
and Disney; the Company's ability to grow revenues in mass and niche
market channels; the Company's ability to identify and close on
strategic acquisitions; changes in general economic conditions, as
well as specific market conditions; fluctuations in demand for our
products; manufacturing lead times; the timing of orders and shipments
and our ability to predict customer demands; inventory levels and
purchase commitments exceeding requirements based upon incorrect
forecasts; collection of accounts receivable; changes in the
regulations and procedures affecting the importation of goods into the
United States; changes in foreign exchange rates; price and product
competition in the giftware industry; variations in sales channels,
product costs or mix of products sold; and, possible future terrorist
attacks, epidemics, or acts of war.

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About Enesco Group, Inc. The Company 's product lines include some of
the world's most recognizable brands, including Heartwood Creek by Jim
Shore, Walt Disney Company, Walt Disney Classics Collection, Pooh +
Friends, Nickelodeon, Bratz, Halcyon Days, Lilliput Lane and Border
Fine Arts, among others. Further information is available on the
Company's web site at www. Additional information
regarding forward-looking statement risk factors is contained in the
Company's reports and filings with the Securities and Exchange
Commission .

Business Editors

ITASCA, Ill. As part of the
transition, the Company has also installed a new radio frequency
tracking feature to improve inventory accuracy. The Company's product lines include some of
the world's most recognizable brands, including Heartwood Creek by Jim
Shore, Walt Disney Company, Walt Disney Classics Collection, Pooh +
Friends, Nickelodeon, Bratz, Halcyon Days, Lilliput Lane, Border Fine
Arts and Precious Moments, among others.

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Serving more than 40,000 customers globally,
Enesco distributes products to a wide variety of specialty card and
gift retailers , home decor boutiques as well as mass-market chains and
direct mail retailers. Internationally, Enesco serves markets
operating in Europe, Canada, Australia, Mexico, Asia and the Pacific
Rim.
(NYSE:ENC ), a leader in the giftware, collectible and home and garden
decor industry, today announced that the Company has completed the
transition of its warehouse management and distribution systems from
its prior ERP system to its legacy information system.

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The Company has tried
to identify such forward-looking statements by use of such words as
"expects," "intends," "anticipates," "could," "estimates," "plans,"
and "believes," and similar expressions, but these words are not the
exclusive means of identifying such statements.

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In addition, the Company operates
in a continually changing business environment and does not intend to
update or revise the forward-looking statements contained herein,
which speak only as of the date hereof.

Enesco Group, Inc.

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There is no assurance that the Company will be successful in obtaining
a waiver or in negotiating revised covenants. In light of these
risks and uncertainties, the forward-looking statements contained
herein may not occur and actual results could differ materially from
those set forth herein.

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Consistent with its negotiations with BABC since April 30,
2005, Enesco expects that the terms of the prospective commitment
letter will be modified from those of the previously announced
commitment.enesco.- ---Enesco Group, Inc. We completed a
testing phase and extensive training prior to our 'go live' date .

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"The transition of Enesco's warehouse management and distribution
system is a very significant milestone in addressing our ERP system
issues," said Cynthia Passmore-McLaughlin, president and CEO of
Enesco.

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Enesco anticipates beginning negotiations with Fleet for
a waiver of the April 2005 covenant and revised financial covenants.

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Business Editors

ITASCA, Ill.com

This press release contains various forward-looking statements
that are based on management's current assumptions and beliefs and
upon information currently available to management. Additional information regarding forward-looking
statement risk factors is contained in the Company's reports and
filings with the Securities and Exchange Commission.

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The Company also advised Fleet of its need to renegotiate its
financial covenants for May and June 2005 and possibly additional
months during the term of it existing credit facility primarily
because of lower projected sales and lower gross margins during the
same period. The Company has
tried to identify such forward-looking statements by use of such words
as "expects," "intends," "anticipates," "could," "estimates," "plans,"
and "believes," and similar expressions, but these words are not the
exclusive means of identifying such statements.

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Enesco is seeking an extension of its previously announced
commitment letter which expired on April 30, 2005, with Fleet Capital
Corporation, operating as Bank of America Business Credit ("BABC "),
for BABC to underwrite a new $100 million global senior revolving
credit facility which will replace the Company's current credit
facility.

Enesco Announces Successful Transition of Warehouse Management and Distribution System; Legacy System Now Live and Stabilized with Inventory Tracking Improveme

With subsidiaries located in Europe and Canada, and a business
unit in Hong Kong, Enesco's international distribution network is a
leader in the industry.

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(NYSE:ENC), a leader in the giftware, and home and garden decor
industries, today announced that the Company has advised Fleet
National Bank as agent under its existing United States credit
facility with Fleet National Bank and LaSalle Bank N. There is no assurance that Enesco will be successful in
obtaining an extension or that financing will be obtained on the terms
of the commitment letter.enesco.

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We
are very pleased with the successful conversion, while also completing
a major upgrade for improved inventory tracking capabilities. Serving more than 40,000 customers
globally, Enesco distributes products to a wide variety of specialty
card and gift retailers, home decor boutique, as well as mass-market
chains and direct mail retailers . Further information is
available on the Company's web site at www.

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"

About Enesco Group, Inc . Such statements are
subject to various risks, uncertainties and other factors which could
cause actual results to vary materially from those anticipated,
estimated, expected or projected.

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com

This press release contains forward-looking statements, which
reflect management's current assumptions and beliefs and are based on
information currently available to management.

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With subsidiaries located in Europe and Canada, and a business
unit in Hong Kong, Enesco's international distribution network is a
leader in the industry. is a world leader in the gift, collectible, and
home and garden decor industries.

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Internationally, Enesco serves
markets operating in Europe, Australia, Mexico, Asia and the Pacific
Rim.

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Important factors that may cause
actual future events or results to differ materially and adversely
from those described in the forward-looking statements include, but
are not limited to: the Company's success in developing new products
and consumer reaction to the Company's new products; the Company's
ability to secure, maintain and renew popular licenses, particularly
our licenses Cherished Teddies, Heartwood Creek and Disney; the
Company's ability to grow revenues in mass and niche market channels;
the Company's ability to comply with covenants contained in its credit
facility; the Company's ability to effectively transition to the
legacy information system; changes in general economic conditions, as
well as specific market conditions; fluctuations in demand for our
products; manufacturing lead times; the timing of orders and shipments
and our ability to predict customer demands; inventory levels and
purchase commitments exceeding requirements based upon incorrect
forecasts; collection of accounts receivable; changes in the
regulations and procedures affecting the importation of goods into the
United States; changes in foreign exchange rates; price and product
competition in the giftware industry; variations in sales channels,
product costs or mix of products sold; and , possible future terrorist
attacks, epidemics, or acts of war. We
remain on track to complete our information system improvements in the
third quarter.