BeautiControl Reports Third Quarter Earnings; Operating Income Increases 102%

Business Wire, Sept 21, 2000

Business Editors

DALLAS--(BUSINESS WIRE)--Sept. 21, 2000

BeautiControl, Inc. (Nasdaq:BUTI), a Dallas-based direct sales marketer and manufacturer of cosmetics-related products and nutritional supplements announced quarter over quarter improvement in earnings for the third quarter of 2000.

BeautiControl reported third quarter 2000 sales of $14.7 million and net income of $.2 million or $.03 per share compared to third quarter 1999 sales of $16.4 million and net loss of ($1.7) million or ($.23) loss per share. Net income and earnings per share for the nine months ended Aug. 31, 2000 were $2.1 million or $.30 per share (including a $.13 one-time gain on sale of an asset) compared to a net loss of ($3.9) million or ($.54) loss per share for nine months ended Aug. 31, 1999. For the nine months ended Aug. 31, 2000, BeautiControl announced sales of $47.8 million compared to sales of $50.7 million for the nine months ended Aug. 31, 1999.

"As evidenced by the third quarter's results," stated Richard W. Heath, Chief Executive Officer, "the Company continues to see a return to profitability as seen in the tremendous improvement in operating income of 102%. During August 2000, the Company held its annual Celebration event, which generated excitement among the consultants regarding new products and selling techniques."

"The Company is very excited about the recent merger announcement with Tupperware and the cash tender offer that began yesterday. Joining with Tupperware represents a merger of strengths, allowing both companies to share direct-selling synergies," commented Mr. Heath. "In addition, the merger will allow BeautiControl to extend its North American and global business reach by leveraging Tupperware's multinational infrastructure and 50-years of direct-selling expertise. Both companies have been successful in offering innovative marketing channels such as direct mail and industry-leading e-commerce capabilities and will continue to leverage these tools to bring profitable results to BeautiControl."

Company stock is traded on The NASDAQ Stock Market under the symbol of "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: the possible inability of Tupperware to complete the acquisition of the Company, the risks and uncertainties associated with integrating the two companies and retaining key personnel, 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, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

                        Three Months Ended     Nine Months Ended
                              Aug. 31,              Aug. 31,
                          2000       1999       2000       1999
                       ---------- ---------- ---------- ----------

Net Sales               $ 14,667   $ 16,411   $ 47,844   $ 50,693

Cost of Sales              3,370      3,982     11,180     11,929

Selling, general &
 administrative           11,221     14,782     35,472     44,346
                       ---------- ---------- ---------- ----------

Income (loss) from
 operations                   75     (2,353)     1,192     (5,582)

Interest and other
 income (expense), net       144       (160)     2,117       (227)
                       ---------- ---------- ---------- ----------

Income (loss) before
 income taxes                219     (2,513)     3,309     (5,809)

Income taxes
 (benefit)                     0       (827)     1,123     (1,922)
                       ---------- ---------- ---------- ----------


Net income (loss)       $    219   $ (1,686)  $  2,187   $ (3,887)
                       ========== ========== ========== ==========


Earnings (loss) per
 common share           $   0.03   $  (0.23)  $   0.30   $  (0.54)
                       ========== ========== ========== ==========

Weighted average
 common shares         7,231,448  7,231,448  7,231,448  7,230,791
                       ========== ========== ========== ==========

Earnings (loss) per
 common share --
 assuming dilution      $   0.03   $  (0.23)  $   0.30   $  (0.54)
                       ========== ========== ========== ==========

Weighted average
 common and common
  equivalent shares    7,299,833  7,231,448  7,268,445  7,230,791
                       ========== ========== ========== ==========