JLM Couture Reports Record Revenues, Profits in Second Quarter

Business Wire, June 21, 1999

NEW YORK--(BUSINESS WIRE)--June 21, 1999--

JLM Couture (NASDAQ:JHPC), a designer, manufacturer and marketer of wedding apparel, today said that, for the second fiscal quarter ended April 30, 1999, the company achieved record net revenues of $5,169,411, a 16 percent increase on net revenues of $4,450,173 in the second quarter last year. The company achieved record net income in the 1999 second fiscal quarter of $318,129, or $.16 per basic share, $.15 diluted, an 11 percent improvement on the net income of $287,841, or $.16 per basic share, $.15 diluted, for the like quarter in fiscal 1998.

For the first six months of fiscal 1999, the company had record net revenues of $8,931,521, a 15 percent increase on net revenues of $7,768,262 in the first six months of fiscal 1998. Net income for the first six months of fiscal 1999 was a record $504,741, or $.25 per basic share, $.24 diluted, compared to net income of $486,550, or $.27 per basic share, $.25 diluted, for the same period in fiscal 1998.

Joseph L. Murphy, president and CEO, said JLM's revenue growth resulted from strong demand for the company's contemporary classic wedding gown and bridesmaid lines, in particular Jim Hjelm Occasions bridesmaids and the company's Lazaro line of wedding gowns. Slower earnings growth in the quarter resulted from the company's continued investment in the European market, as well as costs related to increasing its production capacity in anticipation of new product introductions in the Fall of 1999.

Mr. Murphy said he anticipates that these investments will spur revenue growth in fiscal 2000.

JLM Couture, Inc., founded in 1987 and based in New York City, is the nation's only publicly traded manufacturer of wedding apparel. The Company's lines include Occasions, the industry's first bridesmaids appropriate for social occasions in addition to the wedding; Lazaro, a contemporary bridal rendition of the finest in classic European bridal styling; Visions, a moderately priced bridal line featuring the finest in contemporary design; Jim Hjelm Couture, contemporary bridal designs offering the finest fabrics, and Alvina Valenta, the newest look in elegant upscale contemporary-classic styling.

This document contains forward-looking statements. There are certain important factors that could cause results to differ materially from those anticipated by the statements made above. Additional information on these and other factors are included in the company's quarterly reports on Form 10-Q, the company's annual report on Form 10-K ended October 30, 1998, and the company's 1998 annual report to shareholders. -0-

                 Consolidated Statement of Operations
               For the Three Months and Six Months Ended
                   April 30, 1999 and April 30, 1998
                              (Unaudited)

                                                 Three Months Ended
                                              April 30       April 30
                                                1999           1998

Net Revenues                                 $5,169,411     $4,450,173
Net Income                                      318,129        287,841
Net Income Per
 Common And Common
  Equivalent Share (a)
        Basic                                       .16            .16
        Diluted                                     .15            .15
Weighted Average Number
 Of Common Equivalent Shares (a)
         Basic                                2,048,799      1,828,973
         Diluted                              2,106,776      1,967,726


                                                 Six Months Ended
                                             April 30        April 30
                                               1999            1998

Net Revenues                                 $8,931,521     $7,768,262
Net Income                                      504,741        486,550
Net Income Per
 Common And Common
  Equivalent Share (a)
         Basic                                      .25            .27
         Diluted                                    .24            .25
Weighted Average Number
 Of Common Equivalent Shares (a)
         Basic                                1,994,673      1,828,973
         Diluted                              2,062,452      1,933,038

     (a) Net Income Per Common Share amounts and Weighted Average
Number of Common and Common Equivalent Shares Outstanding have been
restated to reflect the adoption of Statements of Financial Accounting
Standards No 128, "Earnings Per Share."