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FOR IMMEDIATE RELEASE:

 

Movie Star, Inc., Reports:

Hurricane Katrina has Short-Term Impact on Operations

 

New York, New York (September 13, 2005)—Movie Star, Inc. (AMEX: MSI), announced today that Hurricane Katrina is having a short-term impact upon its business operations this quarter ending September 30, 2005.  Movie Star’s distribution center in Poplarville, Mississippi, was forced to close from August 29th to September 6th as a result of the hurricane.  Operations at the Poplarville distribution center resumed once power was restored to the facility early last week. Because some of the Company’s employees have been unable to return to work, the facility is currently operating at approximately 65% of capacity. 

 

Mel Knigin, Movie Star’s President and Chief Executive Officer, stated: “We have been diverting some of our incoming inventory to a public warehouse operation in Los Angeles, California and to our former Petersburg, Pennsylvania distribution center.  The Petersburg facility, which was recently closed, has been reopened on a temporary basis to assist with shipping our goods to customers. However, notwithstanding our best efforts, some orders may be delayed and shipped in our second quarter instead of this first quarter.  We have been working closely with our customers and, to date, they have been understanding of the situation. We believe that they will continue to work with us but there can be no assurances of their continued cooperation and accommodation, as needed. We are also working with our insurance companies to minimize the financial impact of this occurrence. At this time, we are unable to estimate the financial consequences of the hurricane on the Company’s results of operations.” 

 

Mr. Knigin continued, “We are very proud of how our people have responded to the conditions in Poplarville and the resulting impact on the operations of the Company. We are truly appreciative of their efforts to meet the needs of the Company and its customers when they and their community have so many needs of their own.”

 

 

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