Perfumania, Inc. Chooses Lycos for Internet Fragrance Push - Perfumania's New Marketing Effort Targets Millions of Online Shoppers

Business Wire, Feb 3, 1999

MIAMI--(BUSINESS WIRE)--Feb. 3, 1999--Perfumania, Inc. (NASDAQ: PRFM), the nation's largest perfumery chain, today announced an agreement with Lycos, Inc. (NASDAQ: LCOS), the second most visited hub on the Internet and the world's largest online community, to promote the perfume retailer's new Internet store on the Lycos Network. Perfumania will use the multiple Lycos Network sites to pull targeted customers to its online fragrance store, www.perfumania.com.

Ilia Lekach, Chairman and Chief Executive Officer of Perfumania, said, "We decided to kickoff our Internet presence with the ad campaign on the Lycos Network because of its unique ability to deliver a broad, yet highly-targeted audience. Lycos provided us with a targeted buy that lets us focus specifically on the buyer profile we have identified through years of successful retailing."

Commenting on the announcement, David Peterson, Vice President of Sales for Lycos, said, "It's great to get in with an industry leader like Perfumania as they make their first entry into Internet marketing. Perfumania's experience at fragrance and cosmetics marketing developed over many years at hundreds of locations will translate very well to the Web, and their name recognition will also give them a quick start, especially as we enter the important Valentine's Day shopping period."

Lycos provided a list of targeted opportunities for Perfumania to choose from in developing their advertising strategy, which includes targeted marketing to Web users who specify particular shopping preferences and demographic information, combined with a mixture of run-of-site advertisements. The agreement, which lasts the remainder of the year, provides a means for Perfumania to market to millions of targeted consumers.

Founded in 1995, Lycos, Inc. (NASDAQ: LCOS) is a leading Web media company and owner of the Lycos Network, the second most visited hub on the Internet reaching 46.5 percent of Web users. The Lycos Network is a unified set of web sites that attracts a diverse audience by offering a variety of services including leading web navigation resources, homepage building and other web community services and a comprehensive shopping center. The Lycos Network is composed of premium sites: Lycos.com, Tripod, WhoWhere, Angelfire, MailCity, HotBot, HotWired Wired News, Webmonkey and Suck.com. Lycos.com (http://www.lycos.com), "Your Personal Internet Guide," is dedicated to helping each individual user locate, retrieve and manage information tailored to his or her personal interests. Headquartered near Boston in Waltham, Mass., Lycos, Inc. is a global Internet leader with a major presence throughout the U.S., Europe and Asia.

Perfumania, Inc. is a leading speciality retailer and wholesale distributor of a wide range of brand name and designer fragrances with some $180 million in annual sales. The Company operates a chain of more than 290 retail stores specializing in the sale of fragrances at discounted prices up to 70 percent below the manufacturer's suggested retail prices. The Company's wholesale division, one of the largest in the United States, distributes fragrances and related products to national and regional chains and other wholesale distributors throughout North America and overseas.

This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Such risks and uncertainties are described in the Company's filings with the SEC, including its Registration Statement on Form SB-2.

This release is available on the KCSA Worldwide website at www.kcsa.com.