Celebrity first quarter record results.

TYLER, Texas--(BUSINESS WIRE)--Oct. 30, 1995-- Celebrity, Inc. (NMS: FLWR) today announced it achieved record first quarter results in sales and net income for the quarter ended Sept. 30, 1995.

Sales for the quarter totaled $35.9 million, a gain of 29 percent over the $27.9 million reported in the same period a year ago. Net income rose 22 percent to $1.0 million, or $0.16 per share, from $832,000, or $0.13 per share, in the corresponding period of the prior year.

Commenting on the new sales and net income records, Robert H. Patterson, Jr., Chairman and CEO of Celebrity, said, "The first quarter continued a very important trend for us of reporting significant sales improvements over prior-year results. This was the ninth consecutive quarter in which we generated a meaningful gain in revenues over the prior year's corresponding quarter. We believe this consistency is an important reflection of our determination to continue our expansion into new product categories and new channels of distribution and to expose our products to a broader array of customers. We've made major progress in all these areas.

"This consistent growth in sales has not come without cost, however," Mr. Patterson said. "In particular, our selling and general and administrative expenses have increased significantly over the past year, reflecting our expansion of the sales organization, the opening of two new showrooms, the development of new promotional programs, and our investment in the 'back office' support required to manage more than 7,000 products in a wide variety of product categories.

"However, despite the increase in expenses relative to the first quarter a year ago," Mr. Patterson continued, "we were still able to report a substantial gain in first quarter net income. Our record net income in the quarter can be partially attributed to our India Exotics subsidiary, which we acquired less than a year ago to provide a highly complementary product line of decorative brass, textiles and other household accessory items. India Exotics was a contributor to first quarter sales and earnings, and our plan calls for significant growth from this subsidiary throughout fiscal 1996.

"Meanwhile," Mr. Patterson said, "our other subsidiaries continue to perform well and we believe we are very well positioned in terms of both the quality and depth of our inventory to continue our progress in becoming a more important resource for high-quality floral, greenery, brass, Christmas and home accessory items for many of the leading-edge retailing channels in the late 1990's. As we've discussed in recent reports to shareholders, significant changes are occurring in the traditional retail environment, and we believe we've adapted to these changes effectively by providing better service and support to existing customers while building new programs and procedures to penetrate emerging opportunities with mass merchandisers and other large-scale retailers. Our own expansion of products and distribution channels, coupled with our resolve to operate more efficiently and profitably, should put us in a good position to serve our customers and our shareholders well."

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

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

                               Three Months
                            Ended September 30,
                            -------------------
                              1995       1994
                              ----       ----

   Sales                     $35,933    $27,927

   Operating Income          $ 2,185    $ 1,421

   Net Income                $ 1,013    $   832

   Earnings Per Share        $  0.16    $  0.13

   Weighted Average
     Shares Outstanding        6,374      6,306

CONTACT: Celebrity

Robert H. Patterson, Jr. or James R. Thompson 

903/561-3981 REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-236-4266 or

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