Company Secures $125 Million Revolving Credit Facility from FleetBoston Financial

Sunglass Hut International, Inc. (Nasdaq:RAYS) announced today its results for the first quarter ended April 29, 2000.

Sales for the first quarter were $150.5 million compared to $152.6 million for the comparable period in fiscal 1999. Comparable store sales for the first quarter increased 0.3%. Net income for the quarter was $4.2 million or $0.10 per share ($0.11 per share excluding Internet operations), compared to net income of $6.0 million or $0.13 per share in the first quarter of 1999.

John X. Watson, President and Chief Executive Officer commented: "While our first quarter sales and earnings did not meet our overall expectations, we experienced excellent results in the Company's Pacific Rim and European operations. As previously reported, North America sales in April were adversely affected by cold and rainy weather and inconsistent product flow. On a positive note, merchandise gross margins were strong and expenses were tightly controlled. Finally, our Internet operations lost $0.01 per share due to investments in technology and management expertise, which we believe will benefit our long-term strategic growth plans."

Mr. Watson added: "May sales are trending to a breakeven comp, slightly better than April. Our buyers and vendors have been timely in improving the flow of merchandise to our stores and we expect to be in a good inventory position by the end of May. For the upcoming June / July period, we have developed one of the strongest marketing programs ever at Sunglass Hut. We will be distributing four catalogs to over 6 million consumers featuring significant new and exclusive top selling sunglass and watch styles. In addition to these actions, which are intended to improve our sales trend, we will be taking actions in the balance of the year to reduce our expense base. Lastly, we are excited about the acquisition of Watch World International, which is expected to be completed in the next several weeks and when combined with our existing Watch Station and Combo stores creates a leadership position in popular priced watches similar to our leadership position in premium sunglasses and further propels us towards our goal of becoming the leading retailer of fashion accessories."

The Company also announced that it has secured a $125 million 3-year revolving credit facility from FleetBoston Financial's Retail and Apparel Group. Commenting on the transaction, Mr. Watson stated, "This transaction represents Sunglass Hut's commitment to prudent long-term growth, as the funds will support normal working capital needs, as well as the further execution of our share repurchase program."

During the first quarter, the Company opened a total of 8 new units, including 7 combo format locations and converted 44 existing Sunglass Hut stores into the combo format. In addition, 30 locations were closed during the quarter.

The first quarter 2000 earnings release conference call scheduled for Thursday, May 25, 2000 will be available for webcast after 10:00 AM (EST) on Sunglasshut.com. This webcast can be accessed in the "about us" and "investor relations" section of the website.

Sunglass Hut International is recognized as a leader in specialty niche retailing with 1,870 locations including 1,514 Sunglass Hut locations, 110 Watch Station stores and 246 combination sunglass and watch stores around the world as of April 29, 2000. The addition of Watch World will add another 119 stores nationwide. Located in a wide variety of high traffic shopping and tourist destinations, Sunglass Hut and Watch Station stores offer consumers the latest branded products at competitive prices along with outstanding customer service. Sunglass Hut stores are located throughout the United States, Canada, the Caribbean, Europe, Australia, New Zealand and Singapore. Sales for the trailing four quarters through April 29, 2000 totaled $633.5 million and generated EBITDA of $78.2 million. Additional information about products, locations and corporate news is available at www.sunglasshut.com.

Sunglass Hut International's news releases and selected financial data are available on our website and at no charge through Business Wire's News-On-Demand Plus service. For a menu of available information or to retrieve specific information, call 800/311-4602.

This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Those risks include, but are not limited to, merchandising, concentration of suppliers and the potential impact of changes or consolidation in the sunglass or watch manufacturing industry and any resulting changes in vendor's purchase terms and policies, risks of developing exclusive brand market share, limitations on the timely delivery of products by vendors and from the Company's distribution center to its retail stores, risks of new specialty store concepts, distribution channels and International Operations, the impact to future operating results of the disposal of the Company's discontinued operations, changes in the level of global consumer demand and/or spending, gross margin pressures, the impact of litigation on future operating results, the Company's ability to identify and take advantage of changing fashion trends, the Company's ability to manage growth (including its combo store and Watch Station concepts expansion), the Company's dependence on key personnel and its ability to attract, hire, motivate and retain additional, qualified management personnel in the future, as well as the other "Risk Factors" set forth in the Company's Form 10-K for the fiscal year ended January 29, 2000 filed on April 18, 2000. All forward-looking statements should be considered in light of these risks and uncertainties.

SUNGLASS HUT INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)


Thirteen Weeks Ended
---------------------------------
April 29, May 1,
2000 1999
--------------- --------------
Net sales $ 150,471 $ 152,581
Cost of goods sold, occupancy
and buying expenses 89,320 89,012
--------------- --------------
Gross profit 61,151 63,569
--------------- --------------
Selling, general and
administrative expenses:
Operating expenses 44,115 44,615
Depreciation and leasehold
amortization 6,821 6,336
Amortization of cost in excess of
net assets of acquired businesses 548 511
--------------- --------------
51,484 51,462
--------------- --------------

Earnings from operations
before interest and
income taxes 9,667 12,107
Interest expense 2,812 2,115
--------------- --------------
Earnings from operations
before income taxes 6,855 9,992

Provision for income taxes 2,640 3,946
--------------- --------------
Net Income $ 4,215 $ 6,046
=============== ==============

Earnings per share:
(basic and diluted) $ 0.10 $ 0.13
=============== ==============
Weighted average shares outstanding:
Basic 42,800 46,361
=============== ==============
Diluted 43,373 47,647
=============== ==============

As of
---------------------------------
April 29, May 1,
2000 1999
--------------- --------------
Balance Sheet Data (In Thousands):
Inventory $ 95,060 $ 95,012
Total debt $ 159,906 $ 122,188