Movie Star, Inc., Reports Sharply Improved Fiscal 2003

Second-Quarter and First-Half Results

First-Half Net Income More Than Doubles

New York, New York, (February 11, 2003)—Movie Star, Inc. (AMEX: MSI), today announced improved financial results for its fiscal 2003 second quarter and first six months ended December 31, 2002.

For the fiscal 2003 second quarter, net sales increased 10 percent to $16,689,000 from last year’s $15,210,000. Gross margin improved 2.2 percent during the period, reaching 31.5 percent from 29.3 percent for the year-ago quarter. Second-quarter pre-tax income rose 90 percent to $1,252,000 compared with last year’s $659,000. Net income was also up 90 percent during the quarter reaching $751,000 from the $395,000 reported a year ago. Earnings per basic and diluted share were $.05 versus $.03 in 2002’s fiscal second quarter.

For the first six months of fiscal 2003, net sales from continuing operations increased eight percent to $32,469,000 compared with last fiscal year's $30,121,000. Gross margin expanded 2.0 percent reaching 30.6 percent from 28.6 percent in the year-ago first half. Pre-tax income from continuing operations surged 118 percent to $2,368,000 from $1,087,000 in last year's comparable period. Fiscal first-half net income more than doubled, reaching $1,421,000 from $696,000 in the corresponding period a year ago. Earnings per basic and diluted share of $.09 compared with $.05 for the prior year.

“We generated significantly improved financial results on a year-over-year basis, as sales have rebounded in spite of the soft retail environment. During the quarter, we experienced broadbased improvement in demand for our product across all distribution channels,” said Mel Knigin, Movie Star’s President and CEO. “As a direct result of our shift to total offshore production, we simultaneously realized improved gross margins as we sharpened our competitive edge. Furthermore, our continued focus on improving our balance sheet is expected to have lasting effects and enhance the positive impact of higher sales."

Mr. Knigin continued, "Our recently implemented operating initiatives—better sourcing, reducing debt and interest expense, improving inventory turns, optimizing our physical facilities and increasing our penetration of key accounts—have resulted in persistent fundamental improvements to our business model. As a result, Movie Star is now extremely well positioned to produce sustainable improvements in financial results going forward.

"Looking ahead, our outlook for the balance of the fiscal year is very optimistic as we expect meaningful increases in both sales and earnings versus last year's second half," he concluded.

MOVIE STAR, INC., produces and sells ladies sleepwear, robes, leisurewear, loungewear, panties and daywear.

Certain of the matters set forth in this press release are forward-looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: business conditions and growth in the industry; general economic conditions; addition or loss of significant customers; the loss of key personnel; product development; competition; risks of doing business abroad; foreign government regulations; fluctuations in foreign rates; rising costs for raw materials and the unavailability of sources of supply; the timing of orders booked; and the risk factors listed from time to time in the Company’s SEC reports.

CONTACT: INVESTOR RELATIONS:

Movie Star, Inc. -or- SM Berger & Company, Inc.

Thomas Rende, CFO Matthew J. Dennis, CFA

(212) 684-3400 (216) 464-6400

MOVIE STAR, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS

(In Thousands, Except Share Information)

December 31,	June 30,
2002  (Unaudited)	2002*

Assets

Current Assets
Cash	$ 168	$ 215
Receivables, net	10,420	7,001
Inventory	9,688	8,797
Prepaid expenses and other current assets	1,213	2,044
Total current assets	21,489	18,057
Property, plant and equipment, net	1,292	1,350
Other assets	3,035	2,999
Total assets	$25,816	$22,406

Liabilities and Shareholders’ Equity

Current Liabilities
Notes payable	$ 6,155	$ 4,129
Current maturity of long-term liabilities	38	40
Accounts payable and accrued expenses	4,296	4,359
Total current liabilities	10,489	8,528
Long-term liabilities	282	254
Commitments and Contingencies	-	-
Shareholders’ equity
Common stock, $.01 par value – authorized 30,000,000 shares;
issued 17,102,000 shares in December 2002, June 2002 and December 2001	171	171
Additional paid-in capital	4,147	4,147
Retained earnings	14,345	12,924
	18,663	17,242
Less: Treasury stock, at cost – 2,017,000 shares	3,618	3,618
Total shareholders’ equity	15,045	13,624
Total liabilities and shareholders’ equity	$25,816	$22,406

* Derived from audited financial statements.

MOVIE STAR, INC.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Unaudited)

(In Thousands, Except Per Share Amounts)

	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2002_	2001_	2002_	2001_
Net sales	$16,689	$15,210	$32,469	$30,121
Cost of sales	11,426	10,749	22,520	21,510
Gross profit	5,263	4,461	9,949	8,611
Selling, general and administrative expenses	3,893	3,575	7,362	7,025
Operating income from continuing operations	1,370	886	2,587	1,586
Interest income	(1)	(1)	(2)	(2)
Interest expense	119	228	221	501
Income from continuing operations before income taxes	1,252	659	2,368	1,087
Income taxes	501	264	947	434
Income from continuing operations	751	395	1,421	653
Income from discontinued operations, net of income taxes	-	-	-	43
Net income	$ 751	$ 395	$ 1,421	$ 696
BASIC NET INCOME PER SHARE
From continuing operations	$.05	$ .03	$.09	$ .05
From discontinued operations	-	-	-	-
Net income per share	$.05	$ .03	$.09	$ .05
DILUTED NET INCOME
From continuing operations	$.05	$ .03	$.09	$ .05
From discontinued operations	-	-	-	-
Net income per share	$.05	$ .03	$.09	$ .05
Basic weighted average number of shares outstanding	15,085	15,085	15,085	15,085
Diluted weighted average number of shares outstanding	15,089	15,110	15,087	15,134