Largest Shareholder of Movie Star, Inc. Completes Sale of Stock
New York, New York (February 18, 2004)—Movie
Star, Inc. (AMEX: MSI), announced that Mark M. David, the Company’s
non-executive chairman and largest shareholder, together with members of his
family, have completed the sale of their shares of common stock to TTG Apparel,
LLC for $1.70 per share. TTG Apparel, LLC has filed a Schedule 13D with the
Securities and Exchange Commission reflecting its 22.7% ownership of the
Company.
As
previously reported, at the request of TTG Apparel, LLC, the Board of Directors
of the Company approved the purchase of these shares. Also in connection with the purchase, Mark M. David, Chairman of
the Board, and Gary W. Krat resigned from the Company’s Board of Directors, and
Mel Knigin, the Company’s President and Chief Executive Officer, was appointed
Interim Chairman of the Board.
“I
am pleased to have taken on the added responsibility of Chairman and am looking
forward to leading Movie Star into a new era of development. I am confident that the relationship with
TTG will significantly expand our business opportunities as we work together to
facilitate Movie Star’s growth and secure its position as an industry leader,”
stated Mel Knigin.
MOVIE
STAR, INC. produces and sells ladies apparel, including sleepwear, robes,
leisurewear, and daywear. Current
collections include the Cinema Etoile
premium line of intimate apparel and the Movie
Star line of apparel sold as private label programs.
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 Stanley
Berger
(212)
798-4700 (216)
464-6400