Movie Star, Inc (AMEX:MSI) today announced that it has purchased and retired a further $1,948,000 in principal of its 8% senior notes at a cost of approximately $1,770,000. This brings the total extraordinary gain from debt retirement in the Company's fiscal fourth quarter, ended June 30, 2000, to approximately $225,000, net of related costs and income taxes.

"Following this latest purchase, there remains outstanding $7,637,500 in principal of the company's 8.0% senior debt due September 2001 and $4,347,000 in principal of the Company's 12.875% subordinated debentures due October 2001," said Thomas Rende, Movie Star's chief financial officer. "So far this fiscal year, we have brought our long-term debt down by approximately $8.6 million, or about 42%, to just under $12 million."

Mel Knigin, Movie Star's president and chief executive officer, announced the launch of the company's new website, "The web site currently provides easy access to information about our company, including financial information and a small sampling of the products we offer, as well as a history-of-lingerie page. The proposed second phase of the site's development plan will be to create for retailers an internet venue to purchase our products via either the corporate site or a business-to-business e-commerce solution. This is another step toward achieving profitable growth and making our company more valuable to all of our customers and shareholders."

Certain of the matters set forth in this press release are forward-looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: business conditions and growth in the industry; general economic conditions; addition or loss of significant customers; the loss of key personnel; product development; competition; foreign government regulations; fluctuations in foreign rates; rising costs for raw materials and the unavailability of sources of supply; the timing of orders booked; and the risk factors listed from time to time in the Company's SEC reports.

MOVIE STAR, INC. produces and sells ladies sleepwear, robes, leisurewear, loungewear, panties and daywear and also operates 20 retail outlet stores.