Ambassador Eyewear Group Reports Record Earnings for the Second Quarter and Six Months for the Period Ended September 30, 1998.

BENSALEM, Pa.--(BUSINESS WIRE)--November 11, 1998--Ambassador Eyewear Group, Inc. (Chicago Stock Exchange: AEY), designer, marketer and distributor of prescription eyeglass frames and nonprescription sunglasses to department and specialty stores, optical chains and eyewear boutiques worldwide, today reported second quarter and six months sales and earnings for the period ended September 30, 1998.

Net income for the second quarter ended September 30, 1998, grew over 261 percent to $465,000, or $0.10 basic income per share, based on 4,700,000 shares outstanding ($0.9 per share fully diluted). For the same quarter in 1997, the Company reported net income of $178,000 or $0.05 basic income per share, based on 3,500,000 weighted average shares outstanding ($0.05 per share fully diluted, based on weighted average shares outstanding of 3,836,000).

For the six months ended September 30, 1998, the Company reported net sales of $13,679,000 (a 10% increase over 1997), as compared to $12,542,000 for the six months ended September 30, 1997.

Net income for the six months ended September 30, 1998, grew over 364 percent to $1,116,000, or $0.24 basic income per share, based on 4,700,000 assumed shares outstanding ($0.21 per share fully diluted). For the period in 1997, the Company reported net income of $306,000 or $0.09 basic income per share, based on 3,500,000 weighted average shares outstanding ($0.08 per share fully diluted, based on weighted average shares outstanding of 3,864,000).

"We are very pleased with Ambassador's results," said Barry Budilov, President and CEO. "We are continuing to achieve positive results from our strategic initiatives to reduce operating costs while increasing our product lines by signing additional licenses to our program."

The Company also reported that it had continued to decrease selling, general and administrative expenses as a result of eliminating costs of operating Renaissance Eyewear in a separate facility.

"Increase in our sales figures also resulted from the introduction of new products and increased sales of existing products," said Budilov. "In addition, during this period, we were proud to announce that we had been granted an exclusive license from Joseph Abboud Worldwide to produce and distribute a comprehensive collection of Joseph Abboud men's optical eyewear and sunglasses for the Spring 1999 season."

In addition to Joseph Abboud, Ambassador has established relationships with various fashion designers, fashion celebrities and marketing organizations including Kathy Ireland, Harve Benard, Oscar De La Renta, Halston, and the John Lennon Estate as well as highly recognizable consumer product brands such as Playskool, Nintendo and international jewelry designer Kenneth Jay Lane. Ambassador distributes its products to a broad and substantial customer base, including Wal-Mart, K-Mart, National Vision Associates and U.S. Vision, as well as to many regional chain stores and local outlets. The Company intends to continue to identify and license trade names and trademarks from various high profile brand sources in an effort to target and capture additional segments of the eyewear market.

For more information, contact Investor Awareness, Inc., at 847-945-2222.

Except for the historical information contained herein, this news release contains forward-looking statements which involve risks and uncertainties, including the acceptance and pricing of new and existing products, general economic conditions as they affect Ambassador's customers, substantial indebtedness, dependence upon licenses, substantial inventory and accounts receivable balances dependence upon certain major customers, an extremely competitive market, pending litigation, as well as other risks detailed from time to time in Ambassador's SEC filings, including the report on Form 10 KSB for the fiscal year ended March 31, 1998 and the Form 10-QSB for the period ending September 30, 1998. In addition, the quarterly information contained herein is derived from the Company's unaudited consolidated financial statements. The results of operations for the three months ended September 30, 1998 are not necessarily indicative of the results that may be expected for the entire fiscal year ending March 31, 1999 or any future period.

                                 TABLE
                      For the Three Months Ended
                             September 30

                                  1998                       1997
----------------------------------------------------------------------

Net Sales                    $6,440,000                 $6,076,000

Net Income                    $ 465,000                 $  178,000

Net Income Per Share - Basic      $0.10                      $0.05

Net Income Per Share - Diluted    $0.09                      $0.05

weighted average number of
common shares outstanding -
basic income per share        4,700,000                  3,500,000

weighted average number of
common shares outstanding -
diluted income per share      5,280,000                  3,836,000


                                 TABLE
                       For the Six Months Ended
                             September 30

                              1998                       1997
-----------------------------------------------------------------------


Net Sales                   $13,679,000                $12,542,000

Net Income                   $1,116,000                  $ 306,000

Net Income Per Share - Basic      $0.24                      $0.09

Net Income Per Share - Diluted    $0.21                      $0.08

weighted average number of
common shares outstanding -
basic income per share        4,700,000                  3,500,000

weighted average number of
common shares outstanding -
diluted income per share      5,247,000                  3,864,000