JLM Couture, Inc. Reports Third Quarter Results

Business Wire, Sept 21, 2004

NEW YORK -- JLM Couture, Inc. (NASDAQ: JLMC), a designer, manufacturer and marketer of wedding apparel, today said that for the third fiscal quarter ended July 31, 2004, revenues were $ 6,954,600, an 11 percent decrease from revenue of $ 7,847,951 for the like quarter last year. Net Income for JLM's 2004 third fiscal quarter was $ 161,347, or $ 0.08 per basic and diluted share, as compared to $ 481,105 or $ 0.25 a basic and $ 0.24 a diluted share, reported for the like quarter in fiscal 2003.

For the first nine months of fiscal 2004, revenues were $ 19,960,405, a 7 percent decrease from revenues of $ 21,523,459 for the like period a year ago. Net income for the first nine months of fiscal 2004 was $ 528,576, or $ 0.28 a basic share and $ 0.27 a diluted share, as compared to $ 1,074,595 or $ 0.56 a basic share and $ 0.53 a diluted share, for the like period in fiscal 2003.

Joseph L. Murphy, president and CEO, said the decline in sales for the third quarter was a result of lighter traffic at bridal salons throughout the country in the first half of 2004. The company believes that this was due to the uncertainty in the job market and the impact of the ongoing war in Iraq. Earnings declined primarily due to the decline in sales and a weaker gross profit margin, attributable to a change in product mix. The margins were also impacted by increased sample costs associated with the development of new dress collections. Management is making efforts to improve its margins and continues to explore new avenues of sales growth.

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, its bridesmaids \ social occasions collection and the Occasions' Just Separates collection; Lazaro, a contemporary bridal rendition of the finest in classic European bridal styling; Jim Hjelm, a collection of upscale bridal designs made from the highest quality fabrics; Alvina Valenta, featuring an elegant look in upscale contemporary- classic bridal styling; and Lazaro Ensemble bridesmaids.

Consolidated Statement of Operations
                  For the Three and Nine Months Ended
                    July 31, 2004 and July 31, 2003
                              (Unaudited)

                                           Three Months Ended July 31,
                                                2004          2003

Revenues                                     $ 6,954,600  $ 7,847,951

Operating Income                             $   259,347  $   851,105

Net Income                                   $   161,347  $   481,105

Earnings Per Common Share
   Basic                                     $      0.08  $      0.25
   Diluted                                   $      0.08  $      0.24

Weighted Average Number of
 Common and Common Equivalent
   Shares Outstanding
    Basic                                      1,912,694    1,905,733
    Diluted                                    1,960,956    1,977,293


                                            Nine Months Ended July 31,
                                                2004         2003

Revenues                                     $19,960,405  $21,523,459

Operating Income                             $   911,576  $ 1,889,595

Net Income                                   $   528,576  $ 1,074,595

Earnings Per Common Share
   Basic                                     $      0.28  $      0.56
   Diluted                                   $      0.27  $      0.53

Weighted Average Number of
 Common and Common Equivalent
   Shares Outstanding
    Basic                                      1,912,694    1,915,611
    Diluted                                    1,967,805    2,028,270

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/A ended October 31, 2003 and the company's annual report to shareholders.