New
York, New York, (July 10, 2000)—Movie Star, Inc., (AMEX:MSI) today announced
that it has purchased and retired a
further $1,948,000 in principal of its 8% senior notes at a cost of
approximately $1,770,000. This brings the total extraordinary gain from debt
retirement in the Company’s fiscal fourth quarter, ended June 30, 2000, to
approximately $225,000, net of related costs and income taxes.
“Following
this latest purchase, there remains outstanding $7,637,500 in principal of the
Company’s 8.0% senior debt due September 2001 and $4,347,000 in principal of
the Company’s 12.875% subordinated debentures due October 2001,” said Thomas
Rende, Movie Star’s Chief Financial Officer.
“So far this fiscal year, we have brought our long-term debt down by
approximately $8.6 million, or about 42%, to just under $12 million.”
Mel
Knigin, Movie Star’s President and Chief Executive Officer, announced the
launch of the company’s new website, www.MovieStarinc.com: “The web site currently provides easy access
to information about our company, including financial information and a small
sampling of the products we offer, as well as a history-of-lingerie page. The
proposed second phase of the site’s development plan will be to create for
retailers an internet venue to purchase our products via either the corporate
site or a business-to-business e-commerce solution. This is another step toward achieving profitable growth and making
our company more valuable to all of our customers and shareholders.”
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 20 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