NEW YORK, May 03, 2007 — Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced financial results for the fiscal 2007 third quarter ended March 31, 2007.

THIRD QUARTER RESULTS

Net sales increased 14.6% to $219.2 million for the three months ended March 31, 2007 from $191.3 million in the comparable period of the prior year. Net sales growth was driven by increased sales of prestige fragrances to mass retail customers, sales of new fragrances, including Elizabeth Arden Mediterranean and with Love… Hilary Duff, and higher sales globally of the Elizabeth Arden brand. Excluding the favorable impact of foreign currency translation, net sales increased 12.6%.

Net income for the three months ended March 31, 2007 was $3.2 million, or $0.11 per diluted share, compared to net income of $0.7 million, or $0.02 per diluted share, in the same period last year. Earnings for the current year period were positively impacted by a tax benefit of $0.01 per diluted share related to R&D tax credits. Earnings for the prior year period include debt extinguishment charges of $0.02 per diluted share.

E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, “The key drivers of our business performed well this quarter, and we expect this trend to continue for the remainder of this fiscal year and into fiscal 2008. Our U.S. mass retail business delivered another strong quarter. Net sales of the mass business unit grew by 26%, well ahead of the category growth, and we are expanding our market share with those retailers. The second key driver, our international business, increased over 10% led by strong growth in the Asia Pacific and travel retail markets. Global sales of Elizabeth Arden branded skin care and color products are growing rapidly and have experienced double-digit increases so far this fiscal year. We expect growth of the Elizabeth Arden brand in total to continue to accelerate due to the recent launch of our new fragrance Elizabeth Arden Mediterranean.”

Mr. Beattie continued, “During the third quarter we also integrated the remaining functions related to the acquisition of Sovereign Sales. With the transition costs essentially behind us, we expect the acquisitions, along with a strong pipeline of new fragrance brands for the U.S. mass retail market, to contribute to improved operating earnings and earnings growth for the balance of this fiscal year and fiscal 2008.”

NINE MONTHS RESULTS

For the nine months ended March 31, 2007, net sales rose 15.7% to $884.8 million from $764.6 million for the nine months ended March 31, 2006. Excluding the favorable impact of foreign currency translation, net sales increased 14.5%. Net income was $27.7 million, or $0.97 per diluted share, versus $34.7 million, or $1.17 per diluted share, for the year-ago period. The results for the nine months ended March 31, 2007 include restructuring charges of $0.05 per diluted share related to the Company’s previously announced restructuring, and results for the prior nine-month period include debt extinguishment charges of $0.02 per diluted share.

OUTLOOK

The Company confirms its fiscal 2007 net sales and earnings guidance and expects diluted earnings per share in the range of $1.15 to $1.20 and net sales to increase by 15% to 18% over prior fiscal year net sales of $954.6 million. The Company notes that it utilizes foreign currency hedges and that its net sales guidance is based on current foreign currency rates. The earnings guidance reflects no change to the full fiscal year anticipated effective tax rate of 25.6%. The earnings guidance also excludes restructuring charges.

CONFERENCE CALL INFORMATION

The Company will host a conference call today at 4:30 p.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 June 3, 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 Mediterranean; 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, 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, indicated 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 new product launches, 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)

                         Three Months Ended      Nine Months Ended
                       ———————-  ———————-
                        March 31,   March 31,   March 31,   March 31,
                          2007        2006        2007        2006
                        ———   ———   ———   ———
Net Sales              $ 219,223   $ 191,344   $ 884,802   $ 764,615
Cost of Sales            120,744     105,094     529,143     443,539
                        ———   ———   ———   ———
Gross Profit              98,479      86,250     355,659     321,076
Gross Profit
 Percentage                 44.9 %      45.1 %      40.2 %      42.0 %

Selling, General and
 Administrative
 Expenses                 82,090      75,929     277,696     238,424
Depreciation and
 Amortization              6,042       5,438      18,740      16,087
                        ———   ———   ———   ———

Total Operating
 Expenses                 88,132      81,367     296,436     254,511

Interest Expense, Net      6,552       5,344      22,441      18,120
Debt Extinguishment
 Charge                       –         758          –         758
Income Before Income
 Taxes                     3,795      (1,219)     36,782      47,687
Provision for (Benefit
 From) Income Taxes          638      (1,921)      9,083      12,995
                        ———   ———   ———   ———
Net Income             $   3,157   $     702  $   27,699  $   34,692
                        =========   =========   =========   =========

As reported:
———————-
 Basic Income Per
  Share                $    0.11   $    0.02  $     1.00  $     1.22
 Diluted Income Per
  Share                $    0.11   $    0.02  $     0.97  $     1.17

 Basic Shares             27,455      28,412      27,566      28,487
 Diluted Shares           28,754      29,636      28,581      29,633

 EBITDA (a)            $  16,389   $   9,563  $   77,963  $   81,894

Adjusted to exclude
 the effect of debt
 extinguishment and
 restructuring
 charges, net of taxes
 (b):
 Net Income            $   3,271   $   1,254  $   29,058  $   35,244

 Basic Income Per
  Share                $    0.12   $    0.04  $     1.05  $     1.24
 Diluted Income Per
  Share                $    0.11   $    0.04  $     1.02  $     1.19

 Basic Shares             27,455      28,412      27,566      28,487
 Diluted Shares           28,754      29,636      28,581      29,633

EBITDA (a)             $  16,526   $  10,321  $   79,768  $   82,652

(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   Nine Months Ended
                              ——————– ——————-
(In thousands)                March 31,  March 31, March 31, March 31,
                                2007       2006      2007      2006
                              ———- ——— ——— ———
Net income                       $3,157      $702   $27,699   $34,692
Plus:
 Provision for (benefit from)
  income taxes                      638    (1,921)    9,083    12,995
 Interest expense, net            6,552     5,344    22,441    18,120
 Depreciation and amortization    6,042     5,438    18,740    16,087
                              ———- ——— ——— ———

EBITDA                           16,389     9,563    77,963    81,894
Debt extinguishment charge           –       758        –       758
Restructuring charges               137        –     1,805        –
                              ———- ——— ——— ———

EBITDA adjusted to exclude
 debt extinguishment and
 restructuring charges          $16,526   $10,321   $79,768   $82,652
                              ========== ========= ========= =========

(b) 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 debt extinguishment and 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 debt extinguishment
 and restructuring charges. The presentation of the non-GAAP
 information titled ”Net income per share as adjusted, before the
 effect of debt extinguishment and 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   Nine Months Ended
                               ——————- ——————-
                               March 31, March 31, March 31, March 31,
                                 2007      2006      2007      2006
                               ——— ——— ——— ———
As reported:
——————————
Basic
 Net income as reported         $ 3,157   $   702   $27,699   $34,692
                                 =======   =======   =======   =======
 Weighted average shares
  outstanding as reported        27,455    28,412    27,566    28,487
                                 =======   =======   =======   =======
  Net income per basic share
   as reported                  $  0.11   $  0.02   $  1.00   $  1.22
                                 =======   =======   =======   =======

Diluted
 Net income as reported         $ 3,157   $   702   $27,699   $34,692
                                 =======   =======   =======   =======
 Weighted average shares and
  potential dilutive
 shares as reported              28,754    29,636    28,581    29,633
                                 =======   =======   =======   =======
  Net income per diluted share
   as reported                  $  0.11   $  0.02   $  0.97   $  1.17
                                 =======   =======   =======   =======

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

Basic
 Net income as reported         $ 3,157   $   702   $27,699   $34,692
 Debt extinguishment charge,
  net of tax                         –       552        –       552
 Restructuring charges, net of
  tax                               114        –     1,359        –
                                 ——-   ——-   ——-   ——-

  Net income as adjusted,
   before the effect of
  debt extinguishment and
   restructuring charges, net
   of taxes                     $ 3,271   $ 1,254   $29,058   $35,244
                                 =======   =======   =======   =======

 Weighted average shares
  outstanding as reported        27,455    28,412    27,566    28,487
                                 =======   =======   =======   =======

  Net income per share as
   adjusted, before the
  effect of debt
   extinguishment and
   restructuring charges, net
   of taxes                     $  0.12   $  0.04   $  1.05   $  1.24
                                 =======   =======   =======   =======

Diluted
 Net income as reported         $ 3,157   $   702   $27,699   $34,692
 Debt extinguishment charge,
  net of tax                         –       552        –       552
 Restructuring charges, net of
  tax                               114        –     1,359        –
                                 ——-   ——-   ——-   ——-
  Net income as adjusted,
   before the effect of
  debt extinguishment and
   restructuring charges, net
   of taxes                     $ 3,271   $ 1,254   $29,058   $35,244
                                 =======   =======   =======   =======

 Weighted average shares
  outstanding as reported        28,754    29,636    28,581    29,633
                                 =======   =======   =======   =======

  Net income per diluted share
   as adjusted, before
  the effect of debt
   extinguishment and
   restructuring charges, net
   of taxes                     $  0.11   $  0.04   $  1.02   $  1.19
                                 =======   =======   =======   =======

                   CONSOLIDATED BALANCE SHEET DATA
                             (Unaudited)
                            (In thousands)

                                    March 31,   June 30,    March 31,
                                       2007        2006        2006
                                    ———-  ———-  ———-

Cash                               $   37,761    $ 28,466  $   27,309
Accounts Receivable, Net              213,484     181,080     187,953
Inventories                           327,184     269,270     239,628
Property and Equipment, Net            38,662      34,681      32,926
Exclusive Brand Licenses,
 Trademarks and Intangibles, Net      219,084     201,534     184,717
Total Assets                          878,566     759,903     714,491
Short-Term Debt                       114,840      40,000      30,296
Current Portion of Long-Term Debt       1,125         563          –
Current Liabilities                   323,278     234,978     183,317
Long-Term Liabilities                 248,425     247,078     233,943
Total Debt                            340,433     265,951     252,801
Shareholders’ Equity                  306,863     277,848     297,230
Working Capital                       290,732     280,942     305,491

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.