5353 Institute Lane No.

9 Houston, Texas 77005-1881

Crown Crafts (CRWS) is a classic free cash flow generating business.

Business: Crown Crafts, Inc. engages in the design, marketing, and distribution of infant and toddler
products in the United States and internationally. Its infant products include crib bedding, blankets, nursery
accessories, room decor, bibs, burp cloths, bathing accessories, and other infant soft goods.

Free Cash Flow Generation (Data as of 2/25/2010)

Year 2002 2003 2004 2005 2006 2007 2008 2009

Free Cash Flow (in millions) 5.1 6.4 2.8 5.9 7.3 11.0 2.5 8

Impressively, in no year did capital expenditures exceed $450 thousand.

From 2002-2009, total assets averaged $58.46 million.

From 2002-2009 Free Cash Flow averaged $6.13 million.

Therefore, we get an average Free Cash Flow ROA for the period of:

$6.13 million / $58.46 million = 10.48% (quite good!)

At a $30 million market cap, CRWS is trading at: 3.75X 2009's Free Cash Flow
4.9X its 8 year average Free Cash Flow.

Management has been very diligent about paying down debt. Long-Term Debt was $36.8 million in
2002. In the latest quarter reported, Long-Term Debt stood at $1.784 million. On February 9, 2010
Crown Crafts' Board of Directors declared a quarterly dividend of $0.02 a share. Revenue in the
latest quarter reported was up 6.98%

It's always heart-warming to see old school, conservative management. CEO Randall Chestnut and his
team really execute on the blocking and tackling of a well run enterprise.

For me, researching CRWS is always a pleasure. It was one of my first big winners, making me over 650%
in less than two years during a restructuring in 2006-2007. I try to regularly keep up with their results. CEO
Randall Chestnut is a fierce competitor. He was the right-hand man to David H. Murdock of Castle &
Cook/Dole Foods fame at various textile companies which Murdock would take over and Chestnut would
turn around.

After Chestnut became CEO of Crown Crafts, he shuttered money-losing units, moved manufacturing to
Asia, slashed costs to the bone, aggressively paid down debt with cash flow, and recently made some
accretive acquisitions at very shrewd EBITDA multiples. CRWS has a very lean cost structure that makes it
a natural supplier to Wal-Mart, but a tough model for its competitors to emulate. Bottom line, the company
has the cost advantages of Asian manufacturing combined with a seasoned U.S. management team which is
as shrewd and honest as the day is long. It is quite a combination.
Strengths

I. Excellent Management
II. Lean Cost Structure
III. Free Cash Flow Generation
IV. Strong Sourcing/Logistics
V. Shrewd Acquisitions

Primary Risks

I. Private Label Brands

II. Customer Concentration
III. Retail-Direct Licensing
IV. Tough Competitive Environment
V. Asian Product Safety
 Disclosure

Contrarian Industries, LLC is not a registered investment advisor. Nothing in this white
paper should be construed as investment advice. It is merely the personal opinion of
Contrarian Industries, LLC Managing Member Harry Long. Contrarian Industries, LLC and
Harry Long disclaim any liability for any actions taken on reliance on the data and opinions
reflected in this white paper.

Contrarian Industries, LLC does not give investment advice to any entity or individual.
Contrarian Industries, LLC does engage in private investment activities, algorithmic system
R&D, and strategic consulting.

Contrarian Industries, LLC may go long CRWS. Positions may change at any time, without
notice.

Clients, family members, and friends of Harry Long and Contrarian Industries, LLC may
go long CRWS at any time. Positions may change at any time, without notice.

Contrarian Industries, LLC and Harry Long disclaim any liability for any errors or
omissions in data, facts, or analysis/opinion in this white paper and are under no obligation
to update this white paper as new data is reported.

Investors should consult a registered investment advisor for advice on financial matters.