Braun's Fashions Reports December Same-Store Sales.

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 5, 1999--Braun's Fashions Corporation (Nasdaq: BFCI) today reported that total sales for its four-week period ended December 26, 1998, rose to $16.9 million from $14.9 million last year. Year-to-date for the ten months ended December 26, 1998, Braun's total sales were $95.7 million, up from $87.1 million for last year's ten-month period.

Same-store sales in December increased 2% and have also increased 2% for the ten months year-to-date.

As of December 26, 1998, Braun's operated 199 stores compared with 180 stores at December 27, 1997. Year-to-date, the company has added a net of 20 stores (opening 24 and closing 4 as leases expired), and plans to close 4 additional stores as leases expire in January and February 1999.

Bill Prange, President and Chief Executive Officer of Braun's Fashions Corporation commented, "Our December sales were in line with our plans. We are very encouraged by the strength of our sweater business especially in light of the warm weather during the first half of December. Further, we are pleased that we were able to improve gross margins over last year in a heavily promotional selling environment."

Mr. Prange concluded, "Since our fiscal December ended on December 26th, our accounting month differs from that of most other retailers, whose December includes the week following Christmas. This being the case, we are pleased to report our post-Christmas week sales were on plan despite a major snowstorm which impacted New Year's weekend sales."

Braun's Fashions Corporation is a Minneapolis-based specialty retailer of women's clothing and accessories that focuses on quality/value-priced fashions for working women. Presently, the company has 199 stores operating in 22 states, located primarily in the upper Midwest.

This release contains forward-looking statements regarding future performance of the company. The achievement of such results is subject to certain risks and uncertainties, including changes in economic, market and weather conditions, the effect of consumer tastes and spending habits, the realization of expected economies gained through the use of private label and direct import merchandise, management of growth and other factors outside the company's control, including factors discussed from time to time in the company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that may arise after the date hereof.