CELEBRITY, INC. RECORD RESULTS: NET INCOME TRIPLES ON SALES GAIN OF 31 PERCENT FOR FISCAL 1995.

TYLER, Texas--(BUSINESS WIRE)--Aug. 28, 1995--Celebrity, Inc. (NMS: FLWR) today announced it achieved new records in sales and net income for the fiscal year ended June 30, 1995.

For the full year, sales reached $118.8 million, a 31 percent gain over the prior year's sales of $90.9 million. Net income for the year, also a record, was $3.8 million, or $0.60 per share, up more than three-fold from $1.1 million, or $0.18 per share, reported in fiscal 1994.

Sales for the fourth quarter also set a new record at $32.8 million, up 26 percent from $26.0 million in the same period a year ago. Net income for the fourth quarter was $1.0 million, or $0.16 per share, up 72 percent from $604,000 or $0.10 per share, in the fourth quarter of fiscal 1994.

Robert H. Patterson Jr., CEO of Celebrity, said, "The new records we achieved in sales and earnings were, of course, very satisfying. Also significant is our continued progress in improving the operating characteristics of the company. In our annual report last year, we pledged to continue seeking operating efficiencies in the hope of enjoying further gains in profitability. Our three-fold increase in net income, compared with last year, reflects the hard work and determination of our employees in achieving these goals.

Of particular note," Patterson continued, "is the fact that our operating expenses declined as a percentage of sales during the year from 21 percent last year to slightly less than 19 percent for the fiscal year just ended. For example, last year's restructuring of our sales organization, coupled with continued organizational and administrative investments this year, allowed us to achieve a 31 percent sales gain for the year while increasing selling expenses by just 8 percent. Our sales per employee for the year also hit a new high."

Commenting on the state of the industry, Patterson said, "Independent estimates vary about the size and growth of our market, but we believe Celebrity's growth rate -- 31 percent for the year -- exceeds the trends in our industry, implying market share gains for the company. This would be wholly consistent given the success of our Cluett subsidiary, as well as the sales contributions of our recently acquired India Exotics subsidiary," Patterson said.

"Even more significant," Patterson continued, "is the achievement of these market share gains while enjoying quarter after quarter of operating margin improvements. In my experience, it is rare for a company to achieve both market share gains and operating margin improvements simultaneously. Our fourth quarter represented our sixth consecutive quarter of operating margin improvement.

"Looking ahead," Patterson continued, "we are hopeful that additional efficiencies and operating improvements can be achieved in fiscal 1996. Our floral import/distribution operation continues to enhance its national accounts presence, with particular emphasis on our growing Christmas market. Our Cluett subsidiary, which turned in a stellar performance for the year, will be placing more emphasis on new product development, especially in its line of floral arrangements. Additionally our India Exotics subsidiary, purchased earlier this year, is expanding into home decor textiles to supplement its leading position as a supplier of decorative brass items. We look forward to reporting our progress on these and other operational objectives as the new fiscal year unfolds."

Celebrity, Inc. is one of the leading suppliers of high-quality artificial flowers, foliage, flowering bushes and other decorative accessories to craft store chains, other retailers and wholesalers throughout North America and Europe. Celebrity imports and/or produces approximately 7,000 home accent, decorative accessory and giftware items, including artificial floral arrangements, floor planters and trees, a wide range of brass items, and a broad line of seasonal items such as Christmas trees, wreaths, garlands and other ornamental products. -0-

                             CELEBRITY, INC.
                          Results of Operations
                 (In Thousands, Except Per Share Amounts)

                     Three Months                Year
                     Ended June 30           Ended June 30
                   -------------------     -------------------
                     1995       1994         1995       1994
                   --------   --------     --------   --------
Sales              $ 32,767   $ 26,005     $118,810   $ 90,884
Operating Income   $  2,006   $  1,323     $  6,569   $  2,300 (a)
Net Income         $  1,038   $    604     $  3,782   $  1,130
Earnings Per Share $   0.16   $   0.10     $   0.60   $   0.18
Weighted Average
Shares Outstanding    6,340      6,306        6,339      6,241

   ----------------
(a)  Includes nonrecurring acquisition fees of $1,042.

CONTACT: Robert H. Patterson Jr.

James R. Thompson 

903/561-3981