New York, New York, (May 15, 2000)—Movie Star, Inc., (AMEX: MSI) today reported financial results for its fiscal 2000 third quarter and first nine months, which ended March 31, 2000.

Net sales for the third quarter of fiscal 2000 were $14,487,000, 1.5% below the $14,715,000 reported for last year’s third quarter. Third-quarter net income, however, increased 19% to $240,000, or $.02 per diluted share, from $202,000, or $.01 per diluted share, last year.

"Our efforts to become more efficient are improving our earnings," said Mel Knigin, Movie Star’s President and Chief Executive Officer. "Offshore manufacturing improved overall gross margin to 31.8% from 29.8% a year earlier and from 29.4% in the immediately preceding quarter this year. Higher SG&A expense associated with new marketing initiatives brought operating income down 19% in the year-over-year comparison, but tighter inventory controls helped lower our interest expense, which increased pre-tax income 20% and net income 19%."

"Most of our costs are now fixed, so we expect to see a large portion of incremental sales flow to the bottom line," Mr. Knigin said. "We continue to strengthen our internal direct sales team and emphasize our fashion-forward products. Though our top line has not started to reflect our recent sales initiatives, the core of our new team is in place and the initial response to our new fall fashion line has been very positive."

Third-quarter sales for the Company’s intimate apparel division were down less than 1% from last year, while the retail division’s sales were down 6%. Gross margin for the intimate apparel division increased to 30.9% from 29.1% last year, while the retail division’s gross margin increased to 39.3% from 34.9%.

Long-term debt has been reduced by 27%, or $5.7 million, through the first nine months of the fiscal year, significantly lowering interest costs and strengthening the balance sheet.

For the first nine months of fiscal 2000 net sales were down 4.0% to $57,060,000 from $59,462,000 for the comparable period last year. Net income for the nine-month period was $3,080,000, or $.19 per diluted share, in fiscal 2000 versus $3,715,000, or $.24 per diluted share, last year. Included in the earnings for the nine months ending March 31, 2000, are gains of $164,000 attributable to purchases of the Company’s 12.875% subordinated debentures to meet the current year’s sinking fund requirements and a $150,000 extraordinary gain, net of income taxes, on other such purchases, which will be applied to the final payment due on October 1, 2001.

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 26 retail outlet stores.

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

Thomas Rende, CFO Steve Warcholak

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

See notes to consolidated condensed financial statements.

ASSETS

* Derived from audited financial statements.

See notes to consolidated condensed financial statements.