Signature Eyewear Reports Profitable Third Quarter

Business Wire, Sept 10, 2008

LOS ANGELES -- Signature Eyewear, Inc. (OTC BB:SEYE) reported net income of $176,000 on net sales of $6.4 million for the quarter ended July 31, 2008 and net income of $538,000 on net sales of $18.6 million for the nine months ended July 31, 2008. This compares to net income of $256,000 on net sales of $6.2 million for the quarter ended July 31, 2007 and net income of $924,000 on net sales of $18.6 million for the nine months ended July 31, 2007.

Income before taxes increased $61,000 and $88,000 for the three and nine months ended July 31, 2008, respectively, compared to the same periods in 2007. The decreases in after tax income for the three and nine months ended July 31, 2008 were due to income tax benefits of $145,000 and $476,000 in the 2007 periods. These benefits resulted from a decrease in the valuation allowance on the Company's deferred tax asset. This valuation allowance did not change in 2008.

Michael Prince, Chief Executive Officer of the Company, stated, "Our net sales in the third quarter were bolstered by the introduction of Carmen Marc Valvo Eyewear in May 2008 and the growing market penetration of bebe eyes. However, the sluggish domestic economy and the continued softness in the optical frame market hinder our growth."

"We are looking forward to launching our newest line, Michael Stars Eyewear, in early 2009," Prince continued.

The Company's long-term debt continued to decline during the quarter, from $4.7 million at April 30, 2008 to $4.4 million at July 31, 2008. The Company had $1.9 million of borrowing capacity under its principal bank credit facility at July 31, 2008, and its working capital remains solid.

About Signature Eyewear

Signature Eyewear is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally recognized brand names, including bebe eyes, Cutter & Buck Eyewear, Carmen Marc Valvo Eyewear, Dakota Smith Eyewear, Hart Schaffner Marx Eyewear, Hummer Eyegear, Laura Ashley Eyewear, Nicole Miller Eyewear and the soon to be released Michael Stars Eyewear. Signature Eyewear's products are sold worldwide to opticians, optometrists and ophthalmologists and to major retail chains. For information about Signature Eyewear, visit the Company's website at http://www.seye.com.

The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties, including increasing market interest rates. Actual results may differ materially from those indicated by such forward-looking statements. For additional information, please consult the Company's most recent public filings and Form 10-K for the year ended October 31, 2007. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.