bebe stores, inc. (Nasdaq:BEBE) the women's fashion retailer known for its distinctive, contemporary fashion, today announced that it has entered into a licensing agreement with Lunada Bay Corporation for the design, manufacture and distribution of bebe's swimwear collection. The bebe swimwear collection under Lunada Bay Corporation will include swimwear and related cover-ups, and will be sold at bebe stores, better department stores and swimwear specialty shops. The collection will reflect bebe's brand identity by featuring sexy, contemporary and provocative looks. Lunada Bay Corporation plans to introduce a preview collection in November 2000 for distribution to selected retailers in March 2001. "We are proud to be working with Susan Crank and her team at Lunada Bay," said Manny Mashouf, CEO and president of bebe stores, inc. "Their reputation for quality, fashion and service fits well with our vision for the collection." "We have been talking with Manny Mashouf for the past two years while observing the success of the bebe brand and its licensees. We know that bebe Swim will thrive because of our shared passion and philosophies," added Susan Crank, CEO and president of Lunada Bay Corporation. Lunada Bay Corporation has over twenty years of experience in the swimwear industry as a leading designer, manufacturer and distributor of swimwear for recognized brand names such as Mossimo, Girl Star and XOXO.