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                                                                    Exhibit 99.1



                                  [RUSS LOGO]


AT THE COMPANY                                         AT FINANCIAL DYNAMICS
Marc Goldfarb -- Senior Vice President                 Cara O'Brien/Melissa Myron -- General Information
                 and General Counsel

201-337-9000                                           212-850-5600




FOR IMMEDIATE RELEASE

               PRENTICE CAPITAL AND D. E. SHAW LAMINAR PORTFOLIOS

           COMPLETE PURCHASE OF 42% STAKE IN RUSS BERRIE AND COMPANY

                       FROM THE RUSSELL BERRIE FOUNDATION

OAKLAND, N.J. -- AUGUST 11, 2006 -- Russ Berrie and Company, Inc. (NYSE: RUS)
today announced that investment entities and accounts managed and advised by
Prentice Capital Management, L.P. ("Prentice") and D. E. Shaw Laminar
Portfolios, L.L.C. ("Laminar") have each purchased approximately 4.4 million
shares of common stock of the Company from The Russell Berrie Foundation, the
Company's largest shareholder, at a price of $11.30 per share. The purchase
agreement previously executed by the Foundation and Prentice was amended and
restated and Laminar entered into a separate purchase agreement with the
Foundation. The total of approximately 8.8 million shares purchased by Prentice
and Laminar represent 42% of the Company's outstanding shares and the entire
interest in the Company held by the Foundation, which earlier this year became
the holder of all shares of the Company held by the Estate of the late Russell
Berrie, the Company's founder, and a related trust.

In connection with the transaction, the Company's Board of Directors will be
reconstituted to consist of a total of nine members, including two to be
nominated by each of Prentice and Laminar. Effective immediately, Angelica
Berrie and Ilan Kaufthal, each of whom are trustees of the Foundation, have
resigned from the Company's Board, and the Company has agreed to use its
reasonable efforts to effect the remaining reconstitution of the Board on or
prior to August 31, 2006. In addition, the Company has agreed to provide
Prentice and Laminar with certain continuing Board representation rights and
registration rights regarding the purchased shares.

Mr. Andy Gatto, President and Chief Executive Officer, commented, "We are very
excited to welcome both Prentice and Laminar as investors, and are gratified by
their interest in the Company. Both of these investors have a deep understanding
of our business and an excellent track record of working with management to help
build great companies. We believe that their investment is a validation of the
Company's business model and the steps that we have taken over the past two
years, and we look forward to working with our new Board to execute our
strategic plan, leverage our strengths and fully capitalize on our potential."




The Company did not receive any proceeds from this transaction.

The Company was represented by Kaye Scholer LLP, Prentice was represented by
Schulte Roth & Zabel LLP and Laminar was represented by McCarter & English, LLP.
Daroth Capital Advisors LLC acted as financial advisor to the Foundation in
connection with its sale of shares and Weil, Gotshal & Manges LLP acted as the
Foundation's legal counsel.

Russ Berrie and Company, Inc., a leader in the infant and juvenile and gift
industries, and its wholly-owned subsidiaries, designs, develops, and
distributes a variety of innovative gift, infant and juvenile products to
specialty and mass market retailers worldwide. Known for its teddy bears and
other plush animals, the Company's gift and infant and juvenile lines are
comprised of a diverse range of everyday, seasonal, and occasion-themed products
that help people celebrate the milestones in their lives. Founded in 1963 by the
late Russell Berrie from a rented garage in New Jersey, today the Company
operates offices, showrooms, and distribution centers all over the world and
trades on the NYSE under the symbol RUS.

Note: This press release contains certain forward-looking statements. Additional
written and oral forward-looking statements may be made by the Company from time
to time in Securities and Exchange Commission (SEC) filings and otherwise. The
Private Securities Litigation Reform Act of 1995 provides a safe-harbor for
forward-looking statements. These statements may be identified by the use of
forward-looking words or phrases including, but not limited to, "anticipate",
"believe", "expect", "project", "intend", "may", "planned", "potential",
"should", "will" or "would". The Company cautions readers that results predicted
by forward-looking statements, including, without limitation, those relating to
the Company's future business prospects, revenues, working capital, liquidity,
capital needs, interest costs and income are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
indicated in the forward-looking statements. Specific risks and uncertainties
include, but are not limited to those set forth under Item 1A, "Risk Factors",
of the Company's most recent Annual Report on Form 10-K filed with the SEC. The
Company undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or otherwise.


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