Frederick's of Hollywood Capitalizes on Product Licensing Initiative with Three New Agreements

NEW YORK, July 14 /PRNewswire-FirstCall/ -- Frederick's of Hollywood Group Inc. (NYSE Amex: FOH) ("Company") today announced that it has entered into three separate multi-year license agreements, moving forward with its strategy to enter new product categories and become a comprehensive lifestyle brand for sexy women.

"The goal of our licensing program is to identify products in new categories that enhance the Frederick's of Hollywood brand.  These three new license agreements, and our previously announced swimwear license agreement with Blue By Yoo, will help us achieve this goal and offer merchandise that supports our target customers' efforts to lead a fun and sexy lifestyle with a Hollywood flair," stated Thomas Lynch, the Company's Chairman and Chief Executive Officer.  "We will sell licensed merchandise through Frederick's of Hollywood's retail locations, website and catalog, as well as through the licensees' distribution channels to certain agreed upon retailers.  In addition to extending the reach of our brand, this program will allow us to generate licensing revenue and increase retail sales with the introduction of exciting new products in new categories."

Mr. Lynch continued, "Driven by consumer demand, we continue to receive significant interest from potential partners seeking to manufacture, market and distribute licensed products under the Frederick's of Hollywood name.  These agreements provide an economical and efficient opportunity for us to enter several new product categories simultaneously, and to access a broad distribution network of retailers around the world.  We will continue to partner with companies capable of providing a high quality product and a strong distribution network that will help build our brand and help us advance as one of the premier sexy lifestyle brands."

Sexy Halloween costumes – Under a multi-year agreement, Mystery House Costumes will have the right to distribute Frederick's of Hollywood licensed Halloween costumes, such as the iconic french maid, and Halloween costume accessories, throughout the U.S., Canada and Australia.  The Halloween season is already the third largest season for Frederick's of Hollywood, behind Valentine's Day and Christmas.  As such, the costume license agreement will expand on the Company's existing Halloween business by tapping into a greater number of customers with a new line of merchandise.  This new line of licensed products will allow the Company to garner a larger portion of the Halloween costume industry.

Accessories – Under a multi-year agreement, Roffe Accessories, Inc. will develop, manufacture and distribute Frederick's of Hollywood branded women's scarves, belts and woven shirts, which include button down collared shirts, on an exclusive basis; and women's knit tops on a non-exclusive basis, throughout the U.S.  

Jewelry – The Company signed a multi-year agreement with Silver Moon Creations, Inc. to develop, manufacture and market branded costume jewelry, body jewelry and stainless steel jewelry.  Silver Moon Creations will distribute its Frederick's of Hollywood branded jewelry in the U.S. and Canada.  The collection will feature products such as necklaces, pendants, earrings and rings.

Forward Looking Statement

Certain of the matters set forth in this press release are forward-looking and involve a number of risks and uncertainties.  These statements are based on management's current expectations or beliefs.  Actual results may vary materially from those expressed or implied by the statements herein.  Among the factors that could cause actual results to differ materially are the following: competition; business conditions and industry growth; rapidly changing consumer preferences and trends; general economic conditions; large variations in sales volume with significant customers; addition or loss of significant customers; continued compliance with government regulations; loss of key personnel; labor practices; product development; management of growth, increases in costs of operations or inability to meet efficiency or cost reduction objectives; timing of orders and deliveries of products; foreign government regulations and risks of doing business abroad; and the other risks that are described from time to time in Frederick's of Hollywood Group Inc.'s SEC reports.  Frederick's of Hollywood Group Inc. is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

About Mystery House Costumes

Mystery House Costumes is proud to be a leader in the costumes industry. Mystery House is known for unique and sexy designs that have great fit and quality not seen before in the seasonal Halloween business.  Established in 2003 as a high-end garment manufacturer in the undergarment and ready to wear business, they use the same principles to manufacture higher end sexy Halloween costumes for a sophisticated customer.  The innovative and talented design team of Mystery House Costumes has made it the fastest growing name in the sexy women's costumes industry.

About Roffe Accessories

Roffe Accessories, Inc. designs and distributes men's, women's and children's apparel and accessories to the luxury market.  Roffe sells its products to stores such as Nordstrom, Bloomingdales and Saks Fifth Avenue and has been leader in the fashion accessories business for many years.  Roffe was established in 1989 by Murray Roffe and its headquarters and showrooms are based in New York.

About Silver Moon Creations, Inc.

Silver Moon Creations, Inc., founded in 1993, has been a leader in the fashion and fine jewelry industry for over 10 years.  Silver Moon boasts a strong development team, utilizing both in-house designers and a team of contract designers.  This design mix allows Silver Moon to offer a more eclectic selection of jewelry. In addition, Silver Moon offers a U.S. based sales, product development and accounting facility to compliment its factory and distribution facility in China.  Silver Moon has held costume jewelry licenses with Playboy®, Humanity For All, Elvis®, MLB®, Scarface®, and Fender®, to name a few.

About Frederick's of Hollywood Group Inc.

Frederick's of Hollywood Group Inc. conducts its business through its multi-channel retail division and wholesale division.  Through its multi-channel retail division, Frederick's primarily sell women's intimate apparel, swimwear and related products under its proprietary Frederick's of Hollywood® brand through 126 specialty retail stores nationwide, a world-famous catalog and an online shop at www.fredericks.com.  With its exclusive product offerings including Seduction by Frederick's of Hollywood, the Hollywood Extreme Cleavage® bra and Hollywood Sizzle Pool. Party. Swim.™, Frederick's of Hollywood is the Original Sex Symbol®.  Through its wholesale division, Frederick's designs, manufactures, sources, distributes and sells women's intimate apparel throughout the United States and Canada, and sells an array of licensed apparel and accessories globally.  

Our press releases and financial reports can be accessed on our corporate website at www.fohgroup.com.

This release is available on the KCSA Strategic Communications Web site at www.kcsa.com.

SOURCE Frederick's of Hollywood Group Inc.