NEW YORK — Feb. 1, 2007–Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced financial results for the fiscal 2007 second quarter ended December 31, 2006.

SECOND QUARTER RESULTS

Net sales increased 18.8% to $410.8 million for the three months ended December 31, 2006 from $345.9 million in the comparable period of the prior year. Sales growth was driven by a significant increase in fragrance brands sold to the Company’s mass retail customers, sales of new brands, including the With Love… Hilary Duff fragrance and the fragrance brands resulting from the June 2006 Riviera Concepts acquisition. In addition, higher sales of the Company’s Elizabeth Arden branded skin care and color products and growth in the Company’s businesses in China and Taiwan contributed to the net sales increase. Excluding the favorable impact of foreign currency translation, net sales increased 17.3%.

Net income for the three months ended December 31, 2006 was $26.2 million, or $0.92 per diluted share, excluding previously announced restructuring charges of $0.3 million after taxes related to the Company’s restructuring in its European operations, compared to net income of $33.1 million, or $1.12 per diluted share, in the same period last year. On a reported basis, net income was $25.9 million, or $0.91 per diluted share. As previously announced, the Company’s earnings for the second quarter of fiscal 2007 were impacted by transition and integration expenses associated with the Company’s recent acquisitions.

E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, “We are pleased with our second quarter results and the general execution of our business. Our better than planned earnings reflect the strength of our broad-based business model, which spans multiple retail channels and geographies, as well as the strength of our brand portfolio. Overall, the recent acquisitions are performing ahead of our original expectations. We have completed the transition of the distribution activities out of the Sovereign Sales facility and are on schedule to integrate all remaining functions during the third fiscal quarter. Although With Love… Hilary Duff ranked among the top three Fall fragrance launches at U.S. department stores, our recently launched fragrances were short of our internal retail sales expectations, largely due to a softer than expected holiday season for fragrances at U.S. department stores. The rest of our business units, however, performed at or better than plan.”

Mr. Beattie continued, “Our U.S. mass retail business increased significantly, and we are expanding our market share. This growth was led by the acquisitions and the strength of the Britney Spears fragrance franchise, which experienced double-digit gains this quarter in sales to mass retailers as well as in our international markets.”

Mr. Beattie added, “In addition, net sales of our Elizabeth Arden branded skin care and color products rose 18% this quarter and 20% for the first half of the fiscal year. This is a result of our very strong product innovation and improved brand promotion and advertising globally. Our international business achieved another quarter of solid sales growth, with increases across most markets and particularly in Asia. Our focus on the Elizabeth Arden brand, including the introduction of products such as PREVAGE™ anti-aging treatment, is also resulting in improved retail sales and productivity at U.S. department stores. The repositioning of PREVAGE™ to the beauty counter, for example, has lifted the retail performance of our Elizabeth Arden skin care and color business.”

SIX MONTHS RESULTS

For the six-months ended December 31, 2006, net sales rose 16.1% to $665.6 million from $573.3 million for the six months ended December 31, 2005. Excluding the favorable impact of foreign currency translation, net sales increased 15.0%. Net income was $25.8 million, or $0.91 per diluted share, versus $34.0 million, or $1.15 million per diluted share, for the year-ago period. The results for the six months ended December 31, 2006 exclude restructuring charges of $1.2 million after taxes related to the Company’s previously announced restructuring charges. On a reported basis, net income was $24.5 million, or $0.86 per diluted share.

OUTLOOK

The Company confirms its fiscal 2007 annual net sales guidance. For the fiscal year, the Company currently anticipates net sales will increase by approximately 15% to 18%, assuming current foreign currency rates. The Company is raising the lower end of its fiscal 2007 earnings guidance range and currently estimates diluted earnings per share in the range of $1.15 to $1.20, versus its previous guidance range of $1.10 to $1.20.

The Company currently expects net sales to range between $215 million to $230 million for each of the third and fourth fiscal quarters. Diluted earnings per share for the third fiscal quarter are currently estimated to be in the range of $0.01 to $0.06. The Company expects to incur in its third fiscal quarter the final transition expenses for the Sovereign Sales acquisition and increased investment to support the global roll-out of the With Love… Hilary Duff fragrance, PREVAGE™ Eye skin treatment and the Intervene skin care line and the global launch of the new Elizabeth Arden fragrance, Elizabeth Arden Mediterranean.

Mr. Beattie concluded, “As we look forward to the second half of the year, we are excited about the global introduction of the new Elizabeth Arden fragrance, Elizabeth Arden Mediterranean, to support the strong growth of the Elizabeth Arden skin care and color business globally. Prevage Eye continues to gain traction and is lifting total sales of the Prevage™ skin care line and the entire Elizabeth Arden skin care and color business. In addition, we anticipate sales from the recent acquisitions, a strong pipeline of new distributed brands in the U.S. mass retail market, the successful roll-out of recently launched brands and continued growth of our international business to contribute to the second half results.”

CONFERENCE CALL INFORMATION

The Company will host a conference call today at 10:00 a.m. Eastern Time. All interested parties can listen to a live web cast of the Company’s conference call by logging on to the Company’s web site at Company’s Calendar of Events. An online archive of the broadcast will be available within one hour of the completion of the call and will be accessible on the Elizabeth Arden Corporate Website until March 31 2007.

Elizabeth Arden is a global prestige beauty products company. The Company’s portfolio of brands includes the Elizabeth Arden fragrance brands: Red Door, Elizabeth Arden 5th Avenue, Elizabeth Arden green tea and Elizabeth Arden Provocative Woman; the Elizabeth Taylor fragrance brands: White Diamonds and Elizabeth Taylor’s Passion; the fragrance brands of Britney Spears: curious Britney Spears and fantasy Britney Spears; the Hilary Duff fragrance With Love… Hilary Duff; the Danielle Steel fragrance Danielle by Danielle Steel; the classic fragrances: Design, Giorgio Beverly Hills, Halston and Halston Z-14, White Shoulders and Wings; the men’s fragrances: Daytona 500, GANT, Geoffrey Beene’s Grey Flannel, the HUMMER™ Fragrance for Men and PS Fine Cologne for Men; and the designer fragrance brands of Alfred Sung, Badgley Mischka and Bob Mackie; the Elizabeth Arden skin care lines, including Ceramide, Intervene and PREVAGE™ anti-aging treatment and the Elizabeth Arden color cosmetics line.

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Elizabeth Arden, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “intends,” “plans,” “believes” and “projects”) may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance regarding net sales, earnings and cash flow from operations. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations:

• our absence of contracts with customers or suppliers and our ability to maintain and develop relationships with customers and suppliers;
• international and domestic economic and business changes that could impact consumer confidence and or our customers’ operations;
• the impact of competitive products and pricing;
• risks of international operations, including foreign currency fluctuations, economic and political consequences of terrorist attacks and political instability in certain regions of the world;
• unexpected factors affecting customer or consumer purchasing preferences and/or patterns;
• our ability to successfully launch new products and implement our growth strategy;
• the quality, safety and efficacy of our products;
• the success or changes in the timing or scope of advertising and merchandising programs;
• our ability to successfully and cost-effectively integrate acquired businesses or new brands;
• our substantial indebtedness, debt service obligations and restrictive covenants in our revolving credit facility and our indenture for our 7 3/4% senior subordinated notes;
• our customers’ financial condition;
• our ability to access capital for acquisitions;
• changes in product mix to less profitable products;
• the retention and availability of key personnel;
• the assumptions underlying our critical accounting estimates;
• delays in shipments, inventory shortages and higher costs of production due to interruption of operations at key third party manufacturing or fulfillment facilities that manufacture or provide logistic services for the majority of our supply of certain products;
• the loss of or disruption in our distribution facilities;
• changes in the retail, fragrance and cosmetic industries, including the consolidation of retailers and the associated closing of retail doors as well as inventory control practices;
• our ability to protect our intellectual property rights;
• changes in the legal, regulatory and political environment that impact, or will impact, our business, including changes to customs or trade regulations or accounting standards; and
• other unanticipated risks and uncertainties.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

                ELIZABETH ARDEN, INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENT OF OPERATIONS DATA
                             (Unaudited)
        (In thousands, except percentages and per share data)

                      Quarter Ended              Six Months Ended
               —————————  ————————–

                December 31,  December 31,  December 31,  December 31,
                   2006          2005          2006          2005
                ————  ————  ————  ————

Net Sales      $    410,771  $    345,893  $    665,579  $    573,271
Cost of Sales       252,817       200,133       408,399       338,445
                ————  ————  ————  ————

Gross Profit        157,954       145,760       257,180       234,826
Gross Profit
 Percentage            38.5%         42.1%         38.6%         41.0%

Selling,
 General
 and
 Administrative
 Expenses           108,322        86,105       195,606       162,495
Depreciation
 and
 Amortization         6,350         5,376        12,698        10,649
                ————  ————  ————  ————

Total Operating
 Expenses           114,672        91,481       208,304       173,144

Interest
 Expense, Net         8,529         6,662        15,889        12,776

 Income Before
  Income Taxes       34,753        47,617        32,987        48,906
 Provision for
  Income Taxes        8,897        14,523         8,445        14,916
                ————  ————  ————  ————

Net Income     $     25,856  $     33,094  $     24,542  $     33,990
                ============  ============  ============  ============

As reported:
—————
 Basic Income
  Per Share    $       0.94  $       1.16  $       0.89  $       1.19
 Diluted Income
  Per Share    $       0.91  $       1.12  $       0.86          1.15

 Basic Shares        27,380        28,461        27,613        28,519
 Diluted Shares      28,410        29,484        28,482        29,615

 EBITDA (a)    $     49,632  $     59,655  $     61,574  $     72,331

Adjusted to
 exclude the
 effect of
 restructuring
 charges, net
 of taxes (b):
—————
 Net Income    $     26,205  $     33,094  $     25,783  $     33,990

 Basic Income
  Per Share    $       0.96  $       1.16  $       0.93  $       1.19
 Diluted Income
  Per Share    $       0.92  $       1.12  $       0.91  $       1.15

 Basic Shares        27,380        28,461        27,613        28,519
 Diluted Shares      28,410        29,484        28,482        29,615

EBITDA (a)     $     50,101  $     59,655  $     63,242  $     72,331

(a) EBITDA is defined as net income plus the provision for income
 taxes, plus interest expense, plus depreciation and amortization.
 EBITDA should not be considered as an alternative to operating income
 or net income (as determined in accordance with generally accepted
 accounting principles (GAAP)) as a measure of our operating
 performance or to net cash provided by operating, investing and
 financing activities (as determined in accordance with GAAP) or as a
 measure of our ability to meet cash needs. We believe that EBITDA is
 a measure commonly reported and widely used by investors and other
 interested parties as a measure of a company’s operating performance
 and debt servicing ability because it assists in comparing
 performance on a consistent basis without regard to capital
 structure, depreciation and amortization or non-operating factors
 (such as historical cost). Accordingly, as a result of our capital
 structure, we believe EBITDA is a relevant measure. This information
 has been disclosed here to permit a more complete comparative
 analysis of our operating performance relative to other companies and
 of our debt servicing ability. EBITDA may not, however, be comparable
 in all instances to other similar types of measures.

The following is a reconciliation of net income, as determined in
 accordance with GAAP, to EBITDA: (For a reconciliation of net income
 to EBITDA for prior periods, see the Company’s filings with the
 Securities and Exchange Commission which can be found on the
 Company’s website at www.elizabetharden.com).

                      Three Months Ended         Six Months Ended
                   ————————- ————————-
(In thousands)     December 31, December 31, December 31, December 31,
                      2006         2005         2006         2005
                   ———— ———— ———— ————
Net income         $    25,856  $    33,094  $    24,542  $    33,990
Plus:
 Provision for
  income taxes           8,897       14,523        8,445       14,916
 Interest expense,
  net                    8,529        6,662       15,889       12,776
 Depreciation and
  amortization           6,350        5,376       12,698       10,649
                   ———— ———— ———— ————
EBITDA                  49,632       59,655       61,574       72,331
Restructuring
 charges                   469           –        1,668           –
                   ———— ———— ———— ————
EBITDA excluding
 restructuring
 charges           $    50,101  $    59,655  $    63,242  $    72,331
                   ============ ============ ============ ============

(1) The following table reconciles the calculation of net income per
 share on a basic and diluted basis from the amounts reported in
 accordance with GAAP to such amounts before giving effect to the
 impact of restructuring charges. This disclosure is being provided
 because we believe it is meaningful to our investors and other
 interested parties to understand the Company’s operating performance
 for comparability purposes and on a consistent basis without regard
 to the impact of restructuring charges. The presentation of the non-
 GAAP information titled ”Net income per share as adjusted, before the
 effect of the restructuring charges, net of taxes” is not meant to be
 considered in isolation or as a substitute for net income or net
 income per share prepared in accordance with GAAP.

(In thousands,
 except per share
 data)                Three Months Ended         Six Months Ended
                   ————————- ————————-

                   December 31, December 31, December 31, December 31,
                      2006         2005         2006         2005
                   ———— ———— ———— ————

As reported:
——————
Basic
 Net income as
  reported         $    25,856  $    33,094  $    24,542  $    33,990
                    ===========  ===========  ===========  ===========

 Weighted average
  shares
  outstanding as
  reported              27,380       28,461       27,613       28,519
                    ===========  ===========  ===========  ===========

  Net income per
   basic share as
   reported        $      0.94  $      1.16  $      0.89  $      1.19
                    ===========  ===========  ===========  ===========

Diluted
 Net income as
  reported         $    25,856  $    33,094  $    24,542  $    33,990
                    ===========  ===========  ===========  ===========

 Weighted average
  shares and
  potential
  dilutive shares
  as reported           28,410       29,484       28,482       29,615
                    ===========  ===========  ===========  ===========

  Net income per
   diluted share
   as reported     $      0.91  $      1.12  $      0.86  $      1.15
                    ===========  ===========  ===========  ===========

Adjusted to
 exclude the
 effect of
 restructuring
 charges, net of
 taxes
——————

Basic
 Net income as
  reported         $    25,856  $    33,094  $    24,542  $    33,990
 Restructuring
  charges, net of
  tax                      349           –        1,241           –
                    ———–  ———–  ———–  ———–

  Net income as
   adjusted,
   before the
   effect of the
   restructuring
   charges, net of
   taxes           $    26,205  $    33,094  $    25,783  $    33,990
                    ===========  ===========  ===========  ===========

 Weighted average
  shares
  outstanding as
  reported              27,380       28,461       27,613       28,519
                    ===========  ===========  ===========  ===========

  Net income per
   share as
   adjusted,
   before the
   effect of the
   restructuring
   charges, net of
   taxes           $      0.96  $      1.16  $      0.93  $      1.19
                    ===========  ===========  ===========  ===========

Diluted
 Net income as
  reported         $    25,856  $    33,094  $    24,542  $    33,990
 Restructuring
  charges, net of
  tax                      349           –        1,241           –
                    ———–  ———–  ———–  ———–

  Net income as
   adjusted,
   before the
   effect of the
   restructuring
   charges, net of
   taxes           $    26,205  $    33,094  $    25,783  $    33,990
                    ===========  ===========  ===========  ===========

 Weighted average
  shares
  outstanding as
  reported              28,410       29,484       28,482       29,615
                    ===========  ===========  ===========  ===========

  Net income per
   diluted share
   as adjusted,
   before the
   effect of the
   restructuring
   charges, net of
   taxes           $      0.92  $      1.12  $      0.91  $      1.15
                    ===========  ===========  ===========  ===========

                   CONSOLIDATED BALANCE SHEET DATA
                             (Unaudited)
                            (In thousands)

                           December 31,    June 30,      December 31,
                               2006           2006           2005
                           ————- ————–  ————-

Cash                      $      43,375  $      28,466  $      20,957
Accounts Receivable, Net        263,373        181,080        221,939
Inventories                     308,811        269,270        227,261
Property and Equipment,
 Net                             38,398         34,681         32,625
Exclusive Brand Licenses,
 Trademarks and
 Intangibles, Net               218,843        201,534        184,908
Total Assets                    913,833        759,903        725,985
Short-Term Debt                 114,600         40,000         20,474
Current Portion of Long-
 Term Debt                        1,125            563          8,802
Current Liabilities             366,474        234,978        198,503
Long-Term Liabilities           247,890        247,078        234,351
Total Debt                      340,670        265,951        254,276
Shareholders’ Equity            299,469        277,847        293,132
Working Capital                 282,527        280,942        301,341

CONTACT: Elizabeth Arden, Inc.
Marcey Becker, 203-462-5809
or
Investor/Press:
Integrated Corporate Relations
Allison Malkin / Michael Fox, 203-682-8200

SOURCE: Elizabeth Arden, Inc.