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To: Frederick Langford who wrote (72645)	4/30/1999 3:34:00 PM
From: Frederick Langford	Respond to of 119973

Friday April 30, 1:49 pm Eastern Time Perfumania, Inc. Completes Restructuring Company Reports Results for Fiscal 1998 MIAMI--(BUSINESS WIRE)--April 30, 1999--Perfumania, Inc. (the ''Company'') (NASDAQ:PRFM - news), the nation's largest perfumery chain, announced today that it has successfully completed its restructuring and cost-cutting program. In addition, the Company reported its results for the fiscal year ended January 31, 1999 The Company reported a loss for the year of $19 million, or ($2.85) per diluted share. The fiscal 1999 loss includes an operating loss of $6.0 million, as well as charges relating to the restructuring including a non-cash charge of $6.8 million; non-recurring operating expenses of $3.5 million and severance expenses of $2 million. The Company also reported expenses of $650,000, in connection with the start-up of Perfumania.com. This compares with a loss of $11.4 million, or ($1.63) per diluted share reported for the fiscal year ended January 31, 1998. There were 6,659,237 and 7,025,236 weighted average shares for the fiscal years ended January 31, 1999 and 1998, respectively. Ilia Lekach, Chairman and Chief Executive Officer of Perfumania, said, ''We are pleased that in just six months, our new management has turned the Company around, reporting four consecutive months of increased same store sales and three consecutive months of increased retail sales of over 11%. We have put some of the early lessons regarding uncontrolled expansion behind us and have closed unprofitable and underperforming stores. We have been diligent in improving our product mix, merchandising and marketing which has resulted in improved sales and gross margins. We have a compelling and now proven business strategy and we are on pace to be profitable this fiscal year. Mr. Lekach added, ''In addition, we launched Perfumania.com, our Internet store and formed a franchising division that has a franchisee in Panama and has already signed letters of intent with franchisees in Canada and six Central and South American countries. We are looking forward to this fiscal year with a mixture of excitement and commitment.'' Perfumania, Inc. is a leading specialty retailer and wholesale distributor of a wide range of brand name and designer fragrances with approximately $180 million in annual sales. The Company operates a chain of more than 288 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. Company WILL be profitable in '99 IPO Perfumania.com '99 Mother's Day Huge ALU no longer competition: Allou Sells Interest in The Fragrance Counter for $37.5 Million Fred