BeautiControl Reports Second Quarter Earnings of $0.14 Per Share in 2000, a 173% Improvement Over Second Quarter of 1999

Business Wire, June 20, 2000

Business Editors

DALLAS--(BUSINESS WIRE)--June 20, 2000

BeautiControl, Inc. (Nasdaq:BUTI), a Dallas-based direct sales marketer and manufacturer of cosmetics-related products and nutritional supplements announced quarter to quarter earnings improvement and an increase in sales in its BeautiControl U.S. operations for the second quarter of 2000.

BeautiControl reported second quarter 2000 sales of $17,239,526 and income of $984,836 or $0.14 per share as compared to sales of $17,473,860 and a loss of ($1,350,984) or ($0.19) per share in second quarter of 1999. In addition, BeautiControl reported a 4% increase in sales in its BeautiControl U.S. business in quarter over quarter sales. For the first two quarters of the year, BeautiControl announced sales of $33,176,951 and earnings of $1,967,305 or $0.27 per share (including a $0.13 one-time gain on the sale of an airplane). As compared to the two same quarters in 1999, BeautiControl had sales of $34,281,995 and a loss of ($2,200,505) or ($0.30) per share.

"We are truly pleased with this quarter's results," remarked Richard W. Heath, Chief Executive Officer. "With our geographic expansion investments behind us in 1999, the strategic direction for the Company in 2000 as previously announced is returning the Company to profitability and improving shareholder value. Already in 2000, we have demonstrated in the first two quarters that we are focused and well on our way.

"We created excitement in our field organization during the quarter with introductions of new products and new selling aids." commented Mr. Heath. "The Company is continuing its strategy of selectively updating its products while at the same time maintaining its focus on emphasizing various selling opportunities and providing its Consultants with the tools to grow their businesses. We continue to leverage the power of the internet with new offerings and enhancements which allow consumers easy access to purchase the Company's products and services and allow our Consultants to conveniently service their clients. After our launch of personal web pages in March 2000, we currently have over 1,300 web sites. We have planned further enhancements to these selling tools at our upcoming annual sales conference in August. Going forward, we plan to grow our business through all markets and avenues; the internet and other market segments are just the beginning of BeautiControl's willingness to expand to new horizons. I personally believe the months ahead will bring satisfaction to our customers as well as our shareholders."

Company stock is traded on The Nasdaq Stock Market under the symbol "BUTI" and is listed in alphabetical quotation as "BeautiCtl" or "BeauCtl."

The information contained in this news release includes certain forward-looking statements. It is important to note that actual results could differ materially from those projected by such forward-looking statements. Important factors that could cause actual results to differ materially from those projected in such forward-looking statements include, but are not limited to, the following: Consultant and Distributor activity levels, recruiting of new Consultants and Distributors, new product introductions, changes in senior management, protection of intellectual property rights and third party infringement, changes in U.S. or international economic conditions, results of international operations including governmental, regulatory, political and foreign exchange rate impacts, results of operations in new markets, global and domestic expansion efforts, capital resources and the ability to obtain financing and market risks.

                     BEAUTICONTROL COSMETICS, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS

                      Three Months Ended         Six Months Ended
                            May 31,                  May 31,
                       2000        1999         2000         1999
                   -----------  -----------  -----------  -----------
Net Sales          $17,239,526  $17,473,860  $33,176,951  $34,281,995

Cost of Sales        4,068,848    3,866,433    7,809,802    7,946,460

Selling, general
 & administrative   12,030,559   15,645,530   24,250,342   29,564,193
                   -----------  -----------  -----------  -----------


Income (loss) from
 operations          1,140,119   (2,038,103)   1,116,807   (3,228,658)

Interest and other
 income (expense),
 net                  (155,283)       9,274    1,973,104      (66,861)

                   -----------  -----------  -----------  -----------


Income (loss)
 before
 income taxes          984,836   (2,028,829)   3,089,911   (3,295,519)

Income taxes
 (benefit)                   0     (677,845)   1,122,606   (1,095,014)
                   -----------  -----------  -----------  -----------



Net income (loss)     $984,836  ($1,350,984)  $1,967,305  ($2,200,505)
                   ===========  ===========  ===========  ===========



Earnings (loss)
 per common share        $0.14       ($0.19)       $0.27       ($0.30)
                   ===========  ===========  ===========  ===========

Weighted average
 common shares       7,231,448    7,231,448    7,231,448    7,230,459
                   ===========  ===========  ===========  ===========


Earnings (loss)
 per common share-
 assuming dilution       $0.14       ($0.19)       $0.27       ($0.30)
                   ===========  =========== ============  ===========

Weighted average
 common and common
 equivalent shares   7,278,763    7,231,448    7,255,321    7,230,459
                   ===========  =========== ============  ===========