Press Release

An excerpt from this piece is provided below. To read the complete original article, please click here: vtb_pr_051605.pdf

Shelburne, VT – May 16, 2005: The Vermont Teddy Bear Company®
(NASDAQ: BEAR) today announced the signing of a definitive agreement that will
enable the Company to be taken private by The Mustang Group, LLC, a Boston-based private equity firm.

The Company entered into this agreement following the unanimous
recommendation of the members of the Company’s Board of Directors, based on a
unanimous recommendation of a Special Committee comprised of independent
directors. Under the terms of the agreement, the Company’s stockholders will receive $6.50 in cash per share of the Company’s common stock upon the closing of the transaction which is anticipated to occur on or before September 30, 2005.