FOR IMMEDIATE RELEASE

MOVIE STAR ANNOUNCES FISCAL 1999 RESULTS; NET INCOME UP 122% DESPITE A SPECIAL CHARGE

New York, NY – September 28, 1999 -- MOVIE STAR, INC. (ASE: MSI) today reported financial results for the fourth quarter and fiscal year ended June 30, 1999. (See Accompanying Tables).

For the year ended June 30, 1999, net income rose 122% to $2,673,000, or $.17 per diluted share, from $1,202,000, or $.08 per diluted share, in fiscal 1998. These results are all the more significant in light of the previously announced $625,000 special charge taken in the fourth quarter of fiscal 1999 in connection with the retirement from day-to-day operations of Mark M. David, who remains Chairman of the Board. Despite this charge, selling, general and administrative expenses still declined to 21.9% of sales from 23.6% in fiscal 1998. Exclusive of this special charge, net income would have been approximately $3.3 million, or $.21 per diluted share. Furthermore, in fiscal year 1998, the Company recorded a gain on the purchase of subordinated debentures and convertible notes of $157,000.

Sales for the 1999 fiscal year increased 12.3% to $72,506,000 from last year’s $64,537,000. The improvement was attributable to higher sales by the intimate apparel division, where demand for the Company’s moderately priced fashion forward garments continued to grow. At the same time, gross profit for intimate apparel rose to 28.0% from 27.5% due to an improved product mix, better control over product costs, and the continued shift of production to offshore contractors. Sales for the retail division were lower in fiscal 1999. The retail stores were adversely affected by poor weather patterns and hurricanes in the geographic regions where the stores are located. This resulted in higher markdowns and lower gross margins as compared to fiscal 1998.

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Movie Star, Inc. News Release Page 2

September 28, 1999

Sales for the fourth quarter of fiscal year 1999 were $13,044,000, down slightly from last year’s fourth quarter sales of $13,680,000, with both the retail and intimate apparel divisions contributing to the sales decline. Excluding the aforementioned $625,000 special charge, income from operations would have approximated last year’s fourth quarter’s $72,000. After the charge, there was a loss from operations of $552,000, which with interest and taxes, produced a net loss of $1,042,000, or $.07 per diluted share. In the comparable period last year, the Company reported a net loss of $500,000, or $.03 per diluted share.

Commenting on the Company’s performance, Movie Star’s President & CEO, Mel Knigin, stated, “Fiscal 1999 was a very rewarding year in terms of growth in sales and profitability.” Mr. Knigin continued, “Sales for the first quarter of fiscal 2000 may be slightly below the $18,958,000 achieved in the first quarter of fiscal 1999, however, our open order position, as of June 30, 1999, of $32,300,000, which approximated last year’s level, gives us confidence in the year as a whole. As we’ve previously stated, in fiscal year 2000 we are focusing our efforts on increasing sales volume in the second half by expanding our spring-to-summer merchandise collections. This was one of the primary considerations in launching the Meant To Be line.”

Saul Pomerantz, the Company’s Executive Vice President & COO, noted that, “Movie Star’s balance sheet continued to strengthen as working capital rose 14% to $22,616,000. In fact we were able to use cash flow from operations to fund the repurchase of approximately $2.7 million of our 12.875% Subordinated Debentures during August and September 1999, substantially reducing the mandatory sinking fund payment due October 1, 2000. As a result of the transaction, our Company will record a gain of approximately $105,000, net of related costs, in the first quarter of fiscal 2000 and will benefit from lower interest expense going forward.”

MOVIE STAR, INC. produces and sells ladies sleepwear, robes, leisurewear, loungewear, panties and daywear and also operates 28 retail outlet stores.

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 exchange 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.

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CONTACT: INVESTOR RELATIONS COUNSEL:

Movie Star, Inc. -or- The Equity Group Inc.

Thomas Rende, CFO Linda Latman (212) 836-9609

(212) 684-3400 www.theequitygroup.com

(See Accompanying Tables)

Movie Star, Inc. News Release Page 3

September 28, 1999

MOVIE STAR, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Amounts)

Three Months Ended Years Ended

June 30 June 30

1999

1998

1999

1998

NET SALES	$13,044	$13,680	$72,506	$64,537
COST OF SALES	9,325	9,477	51,363	45,777
GROSS PROFIT	3,719	4,203	21,143	18,760
OPERATING EXPENSES:
Selling, general and administrative expenses	4,271	4,131	15,859	15,206
(LOSS ) INCOME FROM OPERATIONS	(552)	72	5,284	3,554
GAIN ON PURCHASES OF SUBORDINATED DEBENTURES
AND SENIOR NOTES	-	-	-	(157)
INTEREST INCOME	(59)	(22)	(118)	(130)
INTEREST EXPENSE	590	578	2,694	2,623
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES	(1,083)	(484)	2,708	1,218
(BENEFIT FROM) PROVISION FOR INCOME TAXES	(41)	16	35	16
NET (LOSS) INCOME	$(1,042)	$ (500)	$ 2,673	$ 1,202
BASIC NET (LOSS) INCOME PER SHARE	$(.07)	$(.03)	$.19	$.09
DILUTED NET (LOSS) INCOME PER SHARE	$(.07)	$(.03)	$.17	$.08
BASIC WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING	14,877	14,117	14,309	14,049
DILUTED WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING	16,499	14,117	15,869	15,161

Movie Star, Inc. News Release Page 4

September 28, 1999

MOVIE STAR, INC. AND SUBSIDIARIES

BALANCE SHEETs

JUNE 30, 1999 AND 1998

(In Thousands, Except Number of Shares)

ASSETS

1999

1998

CURRENT ASSETS:
Cash	$ 4,597	$ 546
Receivables	6,864	6,330
Inventory	16,460	20,945
Deferred income taxes	1,983	2,200
Prepaid expenses and other current assets	602	456
Total current assets	30,506	30,477
PROPERTY, PLANT AND EQUIPMENT – Net	3,495	3,551
OTHER ASSETS	732	906
DEFFERED INCOME TAXES	2,026	1,809
TOTAL ASSETS	$36,759	$36,743

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Notes payable	$ -	$ 328
Current maturities of long-term debt and capital lease obligations	45	40
Accounts payable	4,529	7,234
Accrued expenses and other current liabilities	3,316	2,959
Total current liabilities	7,890	10,561
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS	20,703	20,980
COMMITMENTS AND CONTINGENCIES	-	-
STOCKHOLDERS’ EQUITY
Common stock	169	161
Additional paid-in capital	4,072	3,789
Retained earnings	7,543	4,870
	11,784	8,820
Less treasury stock, at cost – 2,017,000 shares	3,618	3,618
Total stockholders’ equity	8,166	5,202
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$36,759	$36,743