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FREDERICK'S OF HOLLYWOOD ANNOUNCES RECAPITALIZATION PROPOSAL

 LOS ANGELES, Sept. 3 /PRNewswire/ -- Frederick's of Hollywood Inc. (NYSE: FHO) today announced it will ask shareholders to vote on a recapitalization proposal that would involve a reverse split of the company's capital stock and create a new class B capital stock.
 Under the proposal, the company would reverse split its existing stock 1-for-3, reducing the number of shares outstanding to 2.9 million from 8.8 million. Those shares would then be reclassified as class A capital stock, each having one vote. Frederick's will then distribute to holders of class A capital stock two shares of non-voting class B capital stock for each share of class A capital stock. The class A and B capital stock will be traded on the New York Stock Exchange.
 The proposal is subject to approval by shareholders of record as of Sept. 15, 1993.
 George W. Townson, chairman and chief executive officer of Frederick's, said the move is intended to provide management with additional flexibility by permitting the use of equity for possible future financings, acquisitions, benefit plans, etc.
 Frederick's operates more than 200 specialty stores in 39 states and a mail-order division serving customers in all 50 states.
 -0- 9/3/93
 /CONTACT: George W. Townson or John B. Hatfield, Frederick's of Hollywood, 213-466-5151; or Roger S. Pondel, Pondel Parsons & Wilkinson, 310-207-9300/
 (FHO)


CO: Frederick's of Hollywood Inc. ST: California IN: REA SU: RCN

JL-MF -- LA003 -- 8714 09/03/93 09:04 EDT
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Publication:PR Newswire
Date:Sep 3, 1993
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