Investor Relations

SPECTRUM GROUP INTERNATIONAL, INC.

ANNOUNCES FISCAL 2010 FINANCIAL RESULTS

• Total revenue increased to $6.0 billion, up from $4.3 billion in prior-year.
  • Trading segment revenue increased to $5.8 billion, up from $4.1 billion in prior-year.
  • Collectibles segment revenue increased to $177.7 million, up from $164.9 million in prior-year

• Gross profit decreased to $53.8 million, from $70.8 million in prior-year.

• Net loss for the year $1.1 million, from $7.1 million income in prior-year

Irvine, CA, September 16, 2010 – Spectrum Group International, Inc. (SPGZ.PK) today announced financial results for its fiscal year ended June 30, 2010. 

For the 2010 fiscal year, the Company’s revenues were approximately $6.0 billion, comprising of $5.8 billion from its Trading segment and $177.7 million from its Collectibles segment. For the 2009 fiscal year, the Company’s revenues were approximately $4.3 billion, comprising $4.1 billion from its Trading segment and $164.9 million from its Collectibles segment. Net loss for 2010 fiscal year was $1.1 million, or $0.03 per share loss, and pre-tax loss was $0.2 million, compared with a net income for fiscal year 2009 of $7.1 million, or $0.23 per share income, and pre-tax income of $14.3 million.

Greg Roberts, President and Chief Executive Officer, commented, “Our Trading operation performed an outstanding job in growing the fiscal 2010 revenue by achieving $5.8 billion as compared to $4.1 billion in fiscal 2009.  This increase was the result of a number of factors, including higher precious metal prices, precious metals market volatility, a worldwide increase in demand for all gold products and an increased demand for all other precious metal products worldwide.”

Mr. Roberts continued, “Our Collectibles segment revenues increased to $177.7 million in fiscal 2010 from $164.9 million in fiscal 2009.  This increase in revenues is primarily attributable to the contribution by our Numismatic segment of an additional $24.1 million in revenue as compared to 2009, as well as the $1.2 million in revenue by our new Spectrum Wine Auctions segment.  Offsetting these increases was a decrease in our worldwide Philatelic division, which had a decrease in revenue of $13.2 million to $17.8 million in fiscal year 2010, a decrease that we had anticipated as a result of our plan to consolidate our U.S. stamp operations.”

The Company’s Trading segment’s gross profit decreased by $22.9 million, to $20.3 million in 2010 from $43.2 million in 2009.  This decrease was primarily a result of the contraction of silver coin premiums in fiscal year 2010 as compared to fiscal 2009, when silver coin premiums had greatly expanded as a result of supply constraints and investor uncertainty in the financial markets. Also contributing to the Trading segment’s lower margin was the decrease in sales ratio of silver products to gold products, which produce lower margins.

The Company’s Collectible segment’s gross profit increased $6.0 million to $33.6 million from $27.6 million in fiscal year 2009. The increase was primarily attributable to the improved economy in fiscal 2010, which contributed to the Numismatic division’s overall increased revenue as well as the performance of our new Spectrum Wine Auctions division.

In fiscal 2010, the Company’s operating loss was $8.2 million compared to $8.4 million operating income in fiscal 2009.  The Trading segment’s operating income was $7.1 million in fiscal 2010 compared to $26.2 million in fiscal 2009, resulting from the decrease in our gross profit.  The Collectibles segment had an operating loss of $2.2 million in fiscal year 2010 as compared to a $7.6 million operating loss in fiscal year 2009, resulting primarily from goodwill and other intangible impairment charges of $2.3 million, and offset by the improved performance of the Numismatics division and the new Spectrum Wine Auctions business.

Mr. Roberts added, “Our pre-tax loss for fiscal year 2010 was $0.2 million as compared to income of $14.3 million in fiscal year 2009.  Contributing to the decrease were corporate expenditures of $7.4 million related primarily to the streamlining of the corporate accounting department, legal and other professional fees associated with our historical legal and accounting issues, and the settlement of the litigation with Greg Manning. Other non-cash charges negatively impacting performance include the $2.3 million impairment charge.” 

More information regarding the Company’s financial results for fiscal 2010 was set forth in the Company’s Report on Form 10-K, as filed with the Securities and Exchange Commission.

About Spectrum Group International, Inc.

Spectrum Group International, Inc. (together with its subsidiaries, “we,” the “Company” or “SGI”) is a global trading and collectibles network. We are a trader of precious metals and an auctioneer of coins, stamps, wine, and antique arms, armor and historical memorabilia, serving both collectors and dealers. We are also a merchant/dealer of certain collectibles. Our collectibles offerings span the price spectrums from modest to ultra-high end. Furthermore, we offer loans to coin dealers, collectors and investors back by their precious metals, rare coin and other collectibles as collateral.

Our Trading business is conducted through A-Mark Precious Metals, Inc. (“A-Mark”) and its subsidiaries. A-Mark is a full-service precious metal trading company, and an official distributor for many government mints throughout the world. A-Mark products include gold, silver, platinum and palladium for storage and delivery in the form of coins, bars, wafers and grain, and our services include financing, leasing, consignment, hedging and various customized financial programs. A-Mark’s subsidiary, Collateral Finance Corporation, which is the official Numismatic Lender of the American Numismatic Association, provides financing on a wide array of bullion and numismatic products.

Our Collectibles business operates as an integrated network of leading companies concentrating on numismatic (coins) and philatelic (stamps) materials, rare and fine vintage wine, and antique arms, armor and historical memorabilia (militaria). We have offices and auction houses in North America, Europe and Asia. In addition to traditional live auctions, we also conduct Internet and telephoneauctions.

Our Collectibles companies in the philatelic field are auction houses H.R. Harmer Nutmeg Auctions, Inc. of Irvine, California, Corinphila Auktionen of Zurich, Switzerland, Heinrich Köhler Auktionshaus of Wiesbaden, Germany, Corinphila Veilingen B.V., Amstelveen, Netherlands, and John Bull Stamp Auctions, Ltd of Hong Kong. Spectrum Group’s Collectibles companies in the numismatics field include Bowers and Merena Auctions (rare coin and currency auction house), Ponterio & Associates (world and ancient coins and currency auction house), Teletrade (online coin auctions) and Spectrum Numismatics International (wholesale rare coin dealer), all based in Irvine, California. Spectrum Wine Auctions is engaged in the sale by auction of rare and fine vintage wine. Spectrum Group also owns Greg Martin Auctions, which conducts auction sales of antique arms, armor and militaria.

SAFE HARBOR STATEMENT

Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ are identified in our public filings with the Securities and Exchange Commission (SEC), and include the fact that we have disclosed that you should not rely upon our previously published financial statements and the fact that we have not filed all of our reports required by the Securities Exchange Act of 1934.  More information about factors that could affect our business and financial results included in our public filings with the SEC, which are available on the SEC’s website located at www.sec.gov. 

The words "should," "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Additionally, any statements related to future improved performance and estimates of revenues and earnings per share are forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

Contact:

Spectrum Group International, Inc.

Paul Soth

Chief Financial Officer

psoth@spectrumgi.com

949-955-1250

SPECTRUM GROUP INTERNATIONAL, INC.

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