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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: dowen who wrote (6155)	5/3/1999 10:04:00 AM
From: BANCHEE	Read Replies (1) \| Respond to of 57584

ALERT .... PRFM ALL 05/03 09:52 Perfumania Signs an Exclusive Licensing Agreement With WCW -- World Championship Wrestling - to Launch a New Fragrance MIAMI (May 3) BUSINESS WIRE -May 3, 1999-- WCW Brand Fragrance Is to Become the First Major Internet Fragrance Launch in the USA Perfumania, Inc. (NASDAQ:PRFM), the nation's largest perfumery chain, announced today that it has signed an exclusive licensing agreement to manufacture and market a new upscale fragrance line to be jointly created and promoted with the WCW (World Championship Wrestling), a Time-Warner/Turner Broadcasting System enterprise, in time for the new millennium. The agreement establishes the framework for a completely futuristic and innovative marketing program. Mr. Ilia Lekach, Chairman and Chief Executive Officer of Perfumania, said, "The combined marketing efforts of WCW, Perfumania's webstore and the 288 Perfumania retail stores will revolutionize the sale of perfume the way Fred Hayman did when he first came out with his perfumed ad inserts for Georgio Beverly Hills." The WCW upscale fragrance line will initially be sold through the company's Internet webstore. The launch will be supported by the cross marketing relationship with Perfumania's 287 retail stores and the advertising and promotions directed to WCW's 35 million loyal television viewers in the U.S. who watch weekly matches on TBS and TNT. Mr. Lekach continued, "Brand recognition of the WCW fragrance will be accomplished by the combined cross marketing efforts of Perfumania and WCW. The fragrance will have tremendous visibility reaching millions of shoppers through Perfumania's webstore, its 287 retail stores and the 35 million WCW fans." The professional wrestling phenomenon has generated over 200 licensees for WCW including Capital One, Hallmark and Toybiz. There are over 300 live arena-wrestling events a year throughout the United States, Japan and Europe which will facilitate Perfumania's sampling programs. In addition to TV promotions and advertising, WCW promotional opportunities could involve personal appearances by wrestling superstars. "This brand," Mr. Lekach said, "will be driven by electronic media promotions and special events. In addition, this agreement provides Perfumania with the opportunity to cross-market with other WCW licensees in order to further build brand awareness and stimulate business for fragrance and the other licensed products through contests and other tie-ins with WCW-sponsored events." WCW Director Casey Collins spoke enthusiastically about the marketing alliance with Perfumania. "Our champions like Bill Goldberg and Kevin Nash are really pumped about promoting a WCW branded fragrance." Perfumania plans to utilize traditional fashion print advertising campaigns in male-oriented publications including GQ, Sports Illustrated and POV. The fragrance will first be available to Perfumania's Internet webstore where customers will be able to pre-order the new fragrance in November, in time for Christmas delivery. 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 that 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 and prior releases are available on the KCSA Public Relations Worldwide website at www.kcsa.com. -0- emb/ny@ CONTACT: Perfumania Inc., Miami Ilia Lekach (305) 889-1520 or KCSA Worldwide, New York Joseph A. Mansi/Mark Schwartz (212) 896-1205/(212) 896-1220 www.kcsa.com or WCW Janna Silverglade (212) 758-7666 x 211 KEYWORD: FLORIDA INDUSTRY KEYWORD: RETAIL SPORTS Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com

To: dowen who wrote (6155)	5/3/1999 10:16:00 AM
From: Rande Is	Read Replies (1) \| Respond to of 57584

Dowen, thanks so much for your honest appraisal of MP3. Remember Sony owns one of the world's largest record companies. . . used to be CBS/Columbia records. . .now Sony. A move toward MP3 would be shooting themselves in the foot. My feeling is that Diamond Multimedia will one day be the subject of a hostile takeover. . .and when the smoke clears, it will be Seagrams or Sony that bought them. . . to control the MP3 player. . .but there would need to be a simulataneous buyout of the MP3 company as well. . . .I would not be surprised if such a coup is in the works. . .this is big money we are talking about. . . Manufacturers don't want to tick off record companies. MP3 is a hot subject and the reason that stores are not flooded with MP3 players already is the controversy. The record industry is lobbying heavily in D.C. and has formed many collective groups to attack it from a legal perspective. We may likewise one day see it outlawed. I guess what I am saying is that it is no small war. . . the record industry has waged MAJOR war against everything MP3 related. When the first of the cease and desist orders are handed down from the U.S. Treasury Dept to a major university the media coverage alone will make big changes. Nothing will get people to stop using what they have, but by letting people know that laws are being broken and that offenders will be prosecuted in federal court. . .that is enough to at least get a handle on it. But I think that timing is everything. . .the record industry will not take drastic action until they know they have the full support of the Feds, the manufacturers and that their legal system is ready to handle what is necessary. Being so widespread, it is like a nationwide attack on mosquitos. Not an easy thing to do. It will be done. . . just takes lots of planning. Rande Is