New York, New York, (May 30, 2000)—Movie Star,
Inc., (AMEX:MSI) today announced that it has purchased and retired $1,036,000
in principal of its 8.0% senior debt at a cost of approximately $934,000,
resulting in an extraordinary gain of approximately $87,000, net of related
costs and income taxes, to be recorded
in the Company’s fiscal fourth quarter ending June 30, 2000. Following this latest purchase, there
remains outstanding $9,585,500 in principal of the Company’s 8.0% senior debt
due September 2001 and $4,367,000 in principal of the Company’s 12.875%
subordinated debentures due October 2001.
Mel Knigin, Movie Star’s President and Chief
Executive Officer, said, “We are pleased to be in a position to continue to
strengthen our balance sheet. This debt
reduction represents the third time this fiscal year that we have purchased
outstanding debentures, and brings the total for the year to over $6.5 million
in principal, or a reduction of 31% from year end 1999. As business fundamentals allow, we will
continue to seek opportunities to further reduce our long-term debt levels.”
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; 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.
MOVIE STAR, INC. produces and sells ladies
sleepwear, robes, leisurewear, loungewear, panties and daywear and also
operates 21 retail outlet stores.
CONTACT: INVESTOR
RELATIONS:
Movie Star, Inc. -or- SM Berger & Company Inc.
Thomas Rende, CFO
Steve Warcholak
(212) 684-3400
(216) 464-6400