Parlux Announces Preliminary Increase in Third Quarter Net Sales of 6%

FORT LAUDERDALE, FL, Jan 12 (MARKET WIRE) --
Parlux Fragrances, Inc. (NASDAQ: PARL) announced today that preliminary
net sales for the quarter ended December 31, 2008 are estimated to be
$47.3 million, a 6% increase over the $44.5 million reported for the same
period of the prior year. Preliminary net sales for the nine months ended
December 31, 2008 are estimated at $123.0 million, compared to $113.3
million for the comparable prior year period, an increase of
approximately 9% over the prior year. Domestic department store net sales
for the quarter exceeded net sales for the same period of the prior year
by approximately 82%, while sales to international customers decreased
approximately 34% during the quarter, as compared to the same period of
the prior year. For the nine months ended December 31, 2008, domestic
department store and international distributor sales increased by
approximately 81% and 20%, respectively, when compared to the prior year
comparable period. Domestic department store sales during the nine months
ended December 31, 2008 includes approximately $14.9 million in sales of
the new Jessica Simpson fragrance, Fancy, which launched during August
2008, and approximately $7.5 million in sales of the new Paris Hilton
fragrance, Fairy Dust, which began shipping in late September 2008. Sales
to its related party, Perfumania, for the nine months ended December 31,
2008 are down by approximately 39% from the comparable prior year period,
decreasing from $47.8 million to $29.1 million.

Mr. Neil J. Katz, Chairman and CEO, noted, "During this last quarter we
anticipated significantly higher sales and committed our spending
accordingly. However, we were not immune to the current global economic
climate. During the last five weeks of the quarter, retailers experienced
a significant drop in consumer business and re-orders were negatively
affected. In the domestic market, we benefitted from the investments we
made with our promotional activities and in our domestic sales force,
increasing our market share and achieving an 82% increase in sales to
Domestic retailers, coupled with excellent sell-through despite the
difficult conditions. However, on the international front, recessionary
economic conditions and the volatile U.S. dollar led to a significant
decrease in our international sales. On a positive note, shipments and
sell-through of the new Jessica Simpson line, Fancy, and the new Paris
Hilton Fairy Dust fragrance have strengthened our position in the U.S.
department stores. In response to the reduction in sales during the last
few weeks of the quarter, we have implemented steps to reduce costs, and
continue to review all areas of our operation for fiscal 2010, while
focusing on the long-term growth of our company. The benefit of these cost
reductions will be realized during our fourth quarter and into our next
fiscal year."

Conference Call

The Company will hold a conference call on Thursday, February 5, 2009, at
9:00AM (EST) to discuss the Company's quarterly results and to provide
additional outlook on the next quarter. To participate, please call:
Participant Toll Free: 866-852-2121 or Participant International:
416-695-9706 (no digital pin number is required). A replay of the
conference call will also be available from Thursday, February 5, 2009
after 1:00PM, until 11:59PM February 19, 2009. To access the rebroadcast,
Digital Replay Toll Free: 800-408-3053 or Participant International:
416-695-5800 (Replay Passcode: 3280300).

About Parlux

Parlux Fragrances, Inc. is a manufacturer and international distributor of
prestige products. It holds licenses for Paris Hilton, Jessica Simpson,
GUESS?, Nicole Miller, Natori, Queen Latifah, XOXO, Ocean Pacific (OP),
Andy Roddick, babyGund, and Fred Hayman Beverly Hills designer fragrances,
as well as Paris Hilton watches, cosmetics, sunglasses, handbags and other
small leather accessories.

Certain Information Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, regarding, among other
things, our plans, strategies and prospects, both business and financial.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance
or achievements of the Company or its industry to be materially different
from any future results, performance or achievements expressed or implied
by such forward-looking statements. These risks and uncertainties include,
among others, future trends in sales and the Company's ability to
successfully introduce, acquire, or launch new brands, licenses, or
products in a cost-effective manner, general economic conditions and
continued compliance with the covenants in its credit facility. Additional
risk factors are set forth in the Company's periodic reports filed with
the Securities and Exchange Commission. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of
the date thereof. The Company undertakes no obligation to publicly release
the result of any revisions to these forward-looking statements that may
be made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.

FOR:
Parlux Fragrances, Inc.
(954) 316-9008

CONTACT:
Neil J. Katz
Ext. 8116

Raymond J. Balsys
Ext. 8106

Web site: http://www.parlux.com

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