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To: Bucky Katt who wrote (58232)	2/24/1999 3:21:00 PM
From: Silicon Trader	Respond to of 119973

PRFM ednesday February 24, 2:43 pm Eastern Time Company Press Release Perfumania, Inc. Signs a Non-Binding Letter Of Intent With Central America Retail Systems, S.A. Company to become its Exclusive Franchisee and Internet Affiliate for Panama, Costa Rica, Guatemala, Nicaragua, Honduras and El Salvador MIAMI--(BUSINESS WIRE)--Feb. 24, 1999-- Perfumania, Inc. (NASDAQ:PRFM - news), the nation's largest discount perfumery chain, announced today that it has signed a non-binding Letter of Intent with Central America Retail Systems, whereby Central America Retail Systems will receive the exclusive right to franchise Perfumania stores in Costa Rica, Guatemala, Nicaragua, Honduras and El Salvador. Central America Retail Systems which is presently operating five franchised Perfumania stores in the Republic of Panama, will also become Perfumania's Internet web store affiliate for Panama, Costa Rica, Guatemala, Nicaragua, Honduras and El Salvador. The terms of the agreement call for Perfumania to obtain an up-front, undisclosed payment from Central America Retail Systems for the exclusive franchise rights to these countries, as well as a percentage of the combined gross sales achieved through the Internet sites and the franchised stores. ''International marketing on the Internet is a complex process. Customs restrictions, delays and high shipping expenses present major obstacles to most international shipments,'' explained Ilia Lekach, Chairman and Chief Executive Officer of Perfumania. ''This agreement represents a major progress in our recently announced strategy of expanding Perfumania's international franchising and Internet affiliation. Perfumania will be providing customers in Central America and Panama with the opportunity of purchasing brand name fragrances locally, at discounted prices and without having to pay for international shipping, or experiencing customs clearing delays,'' Mr. Lekach added. Commenting on this agreement, Danny Yohros, President of Central America Retail Systems, said, ''This is a great opportunity for expanding our relationship with the renowned U.S. retailer. In Latin America, Perfumania's name is considered as synonymous with upscale fragrance shopping and value. Our customers expect to purchase at Perfumania the best fragrance brands in a chic, full service environment for less. We are excited and thrilled to form this alliance. Our Perfumania stores in Panama are performing above expectations. Sales results are encouraging our management to continue opening more stores and expanding our retail distribution territories.'' Central America Retail Systems and it's affiliated companies are a privately owned group of related companies operating a chain of Perfumania stores in Panama and a chain of Blockbuster Video stores in Panama. This Group is also engaged in the wholesale distribution of better garments, brand name liquors, cigarettes and accessories to the Caribbean and Central and South American markets. Perfumania, Inc. is a leading specialty retailer and wholesale distributor of a wide range of brand name and designer fragrances with some $180 million in annual sales. The Company operates a chain of more than 290 retail stores specializing in the sale of fragrances at discounted prices up to 70 percent below the manufacturer's suggested retail prices. The Company's wholesale division, one of the largest in the United States, distributes fragrances and related products to national and regional chains and other wholesale distributors throughout North America and overseas. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Such risks and uncertainties are described in the Company's filings with the SEC, including its Registration Statement on Form SB-2. This release is available on the KCSA Worldwide website at www.kcsa.com.