NEW YORK, June 10, 2008 (PRIME NEWSWIRE) — Elizabeth Arden, Inc. (Nasdaq:RDEN) and Liz Claiborne Inc. (NYSE:LIZ) today announced that all of the conditions to effectiveness of the previously-announced, exclusive long-term global license agreement between the companies, under which Elizabeth Arden has the exclusive rights to manufacture, distribute and market the Liz Claiborne fragrance brands, have been satisfied or waived, and the license agreement has become effective. Terms of the agreement were not disclosed.

Elizabeth Arden: Skincare. Color. PREVAGE. Fragrances (Red Door, 5th Avenue, Green Tea, Mediterranean, Provocative Woman).

Fragrance Portfolio: Elizabeth Taylor. Mariah Carey. Britney Spears. Hilary Duff. Danielle Steele. Usher. Alberta Ferretti. Alfred Sung. Badgley Mischka. Bob Mackie. GANT. Geoffrey Beene. Halston. Juicy Couture. Liz Claiborne. Lucky Brand. Nanette Lepore. Rocawear. Curve. Giorgio of Beverly Hills. Daytona 500(r). HUMMER(r). PS Fine Cologne.

About Liz Claiborne: Liz Claiborne Inc. designs and markets a global portfolio of retail-based premium brands including Kate Spade, Juicy Couture, Lucky Brand and Mexx. Liz Claiborne Inc. also has a refined group of department store-based brands with strong consumer franchises including the Liz Claiborne and Monet families of brands, Enyce, Kensie, Mac & Jac, Narciso Rodriguez and the licensed DKNY Jeans Group. For more information visit www.lizclaiborneinc.com.

Elizabeth Arden, Inc. Forward-Looking Statement

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 its 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, Elizabeth Arden, Inc.’s expectations regarding the license of the Liz Claiborne fragrance portfolio, including the impact of the license on our fiscal 2008 and 2009 net sales and earnings. 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 Elizabeth Arden, Inc.’s results of operations:

• factors affecting Elizabeth Arden, Inc.’s relationships with its customers or its customers’ businesses, including the absence of contracts with customers, customers’ financial condition, and changes in the retail, fragrance and cosmetic industries, such as the consolidation of retailers and the associated closing of retail doors as well as retailer inventory control practices, including but not limited to levels of inventory carried at point of sale and practices used to control inventory shrinkage;
• Elizabeth Arden, Inc.’s reliance on third-party manufacturers for substantially all of its owned and licensed products and the absence of contracts with suppliers;
• delays in shipments, inventory shortages and higher costs of production due to the loss of or disruption in Elizabeth Arden, Inc.’s distribution facilities or at key third party manufacturing or fulfillment facilities that manufacture or provide logistic services for its products;
• Elizabeth Arden, Inc.’s ability to respond in a timely manner to changing consumer preferences and purchasing patterns and other international and domestic conditions, and events that impact consumer confidence and demand, such as economic downturns;
• Elizabeth Arden, Inc.’s ability to protect our intellectual property rights;
• the success, or changes in the timing or scope, of Elizabeth Arden, Inc.’s new product launches, advertising and merchandising programs;
• the quality, safety and efficacy of Elizabeth Arden, Inc.’s products;
• the impact of competitive products and pricing;
• risks of international operations, including foreign currency fluctuations, hedging activities, economic and political consequences of terrorist attacks, and political instability in certain regions of the world;
• Elizabeth Arden, Inc.’s ability to implement its growth strategy and acquire or license additional brands or secure additional distribution arrangements, to successfully and cost-effectively integrate acquired businesses or new brands, such as the Liz Claiborne fragrance brands, and to finance its growth strategy and its working capital requirements;
• Elizabeth Arden, Inc.’s level of indebtedness, debt service obligations and restrictive covenants in its revolving credit facility and the indenture for its 7 3/4% senior subordinated notes;
• changes in product mix to less profitable products;
• the retention and availability of key personnel;
• changes in the legal, regulatory and political environment that impact, or will impact, Elizabeth Arden, Inc.’s business, including changes to customs or trade regulations or accounting standards or critical accounting estimates;
• success of, and costs associated with, Elizabeth Arden, Inc.’s recently announced restructuring plan; 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 Elizabeth Arden, Inc. makes 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 Elizabeth Arden, Inc. undertakes 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 to predict all of such factors. Further, Elizabeth Arden, Inc. cannot assess the impact of each such factor on its 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. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in Elizabeth Arden, Inc.’s Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended June 30, 2007.

Liz Claiborne Inc. Forward-Looking Statement

Statements contained herein that relate to future events or Liz Claiborne Inc.’s future performance, including, without limitation, statements with respect to Liz Claiborne Inc.’s anticipated results of operations or level of business for 2008 or any other future period, are forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations only and are not guarantees of future performance, and are subject to certain risks, uncertainties and assumptions. Liz Claiborne Inc. may change its intentions, belief or expectations at any time and without notice, based upon any change in Liz Claiborne Inc.’s assumptions or otherwise. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. In addition, some factors are beyond Liz Claiborne Inc.’s control. Among the factors that could cause actual results to materially differ include: risks associated with the current macroeconomic conditions, including the possibility of a recession in the United States and the rising price of fuel; risks related to the reorganization of Liz Claiborne Inc. into two segments and the related realignment of Liz Claiborne Inc.’s management structure; risks associated with Liz Claiborne Inc.’s ability to attract and retain talented, highly qualified executives and other key personnel; risks associated with providing for the succession of senior management; risks associated with Liz Claiborne Inc.’s ability to execute successfully on its previously announced long-term growth plan; risks associated with Liz Claiborne Inc.’s strategic review of brands, including whether Liz Claiborne Inc. identified the appropriate brands for review or appropriately valued assets related to brands sold or licensed to third parties; risks associated with Liz Claiborne Inc.’s operation and expansion of its specialty retail business, including the ability to successfully expand the specialty retail store base of its Direct Brands segment and to develop best-in-class retail capabilities; risks associated with Liz Claiborne Inc.’s ability to achieve greater collaboration with its wholesale customers; risks associated with Liz Claiborne Inc.’s ability to achieve projected cost savings; Liz Claiborne Inc.’s ability to continue to have the liquidity necessary, through cash flow from operations and financing, to fund its plans may be adversely impacted by a number of factors, including the downgrading of Liz Claiborne Inc.’s credit rating; risks associated with the continuing challenging retail conditions, including the levels of consumer confidence and discretionary spending and the levels of customer traffic within department stores, malls and other shopping and selling environments; risks related to Liz Claiborne Inc.’s ability to successfully continue to evolve its supply chain system, including its product development, sourcing, logistics and technology functions, to, among other things, reduce product cycle-time and costs and meet customer demands and the requirements of the projected growth in Liz Claiborne Inc.’s specialty retail business; risks associated with selling Liz Claiborne Inc.’s Liz & Co. and Concepts by Claiborne brands outside of better department stores; risks associated with Liz Claiborne Inc.’s Liz Claiborne and Claiborne branded products association with known designers and customer acceptance of the resulting products; risks associated with Liz Claiborne Inc.’s dependence on sales to a limited number of large United States department store customers; the impact of consolidation, restructurings and other ownership changes in the retail industry, such as the merger between Federated Department Stores, Inc. and The May Department Store Company; Liz Claiborne Inc.’s ability to respond to constantly changing consumer demands and tastes and fashion trends, across multiple product lines, shopping channels and geographies; risks related to retailer and consumer acceptance of Liz Claiborne Inc.’s products; risks associated with the possible failure of Liz Claiborne Inc.’s unaffiliated manufacturers to manufacture and deliver products in a timely manner, to meet quality or safety standards or to comply with Company policies regarding labor practices or applicable laws or regulations; risks related to Liz Claiborne Inc.’s ability to adapt to and compete effectively in the current quota environment, including changes in sourcing patterns resulting from the elimination of quota on apparel products as well as lowered barriers to entry; risks relating to certain litigations currently outstanding against Liz Claiborne Inc., including litigations filed against Mexx Europe with respect to breach of contract claims by a former high street concession partner in France; risks associated with Liz Claiborne Inc.’s ability to maintain and enhance favorable brand recognition; risks associated with Liz Claiborne Inc.’s ability to correctly balance the level of its commitments with actual orders; risks associated with Liz Claiborne Inc.’s ability to identify appropriate business development opportunities and risks associated with acquisitions and new product lines, product categories and markets, including risks relating to integration of acquisitions, retaining and motivating key personnel of acquired businesses and achieving projected or satisfactory levels of sales, profits and/or return on investment, and risks inherent in licensing arrangements such as Liz Claiborne Inc.’s license of the DKNY Jeans and DKNY Active brands; risks associated with any significant disruptions in Liz Claiborne Inc.’s relationship with its employees or with its relationship with the unions which represent certain Company employees; risks associated with changes in social, political, economic, legal and other conditions affecting foreign operations, sourcing or international trade, including the impact of foreign currency exchange rates, and currency devaluations in countries in which Liz Claiborne Inc. sources product and risks associated with the importation and exportation of product; risks associated with war, the threat of war and terrorist activities; work stoppages or slowdowns by suppliers or service providers; risks relating to protecting and managing Liz Claiborne Inc.’s intellectual property rights; and such other economic, competitive, governmental and technological factors affecting Liz Claiborne Inc.’s operations, markets, products, services and prices and such other factors as are set forth in Liz Claiborne Inc.’s Quarterly Report on Form 10-Q for the quarter ended April 5, 2008 and Liz Claiborne Inc.’s 2007 Annual Report on Form 10-K, including, without limitation, those set forth under the headings “Risk Factors” and “Statement Regarding Forward-Looking Disclosure.” Liz Claiborne Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

     CONTACT:
     Elizabeth Arden, Inc.
     Marcey Becker, Senior Vice President, Finance
       (203) 462-5809

     Liz Claiborne Inc.
     Jane Randel, Vice President, Corporate Communications
       (212) 626-3408
     Robert Vill, Vice President, Finance and Treasurer
       (201) 295-7515

The Liz Claiborne fragrance portfolio consists of many well-known and highly-ranked products, including the Juicy Couture, Usher, Curve by Liz Claiborne, Lucky Brand and the Liz, Realities, Bora Bora and Mambo fragrances.

“This is a very strategic transaction for both companies,” said E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc. “We have worked closely together through our existing distribution relationship and are very familiar with the Liz Claiborne fragrance portfolio. Specifically, this transaction will allow us to (i) benefit from improved market share and productivity in our North American fragrance business, (ii) gain efficiencies from a larger fragrance business, particularly within our supply chain, logistics and sales organizations, (iii) increase gross margins by converting existing mass customer sales from a distribution margin to an owned/licensed margin and (iv) provide additional sales volume to our fast-growing international business. We look forward to working collaboratively with the Liz Claiborne brand teams to continue Liz Claiborne’s success with respect to the marketing and brand development of these distinctive fragrance brands.”

William L. McComb, Chief Executive Officer of Liz Claiborne Inc., said, “Fragrance is an important equity enhancing category for our brands. For us to maximize profitability in this business going forward, however, we would have to make significant changes to how it is operated. Doing that right now would distract us from other initiatives currently underway that are core to our strategy. Through this partnership with Elizabeth Arden, we can continue to successfully develop and market brand enhancing fragrances in a more capital efficient manner, leveraging our strength in brand building with Arden’s expertise in developing and growing fragrance businesses. This is another example of how diligently we are pursuing our strategy. We expect this transaction to have a positive impact on our 2008 cash flows and to have no impact on 2008 projected adjusted EPS and operating margin. Looking forward to 2009 and beyond, we expect the impact of the royalty income from this transaction to be accretive to both EPS and operating margin.”

Elizabeth Arden expects this transaction to contribute to both net sales and earnings growth in fiscal 2009. Elizabeth Arden expects to incur advertising and marketing expenses paid by Liz Claiborne and other transaction related expenses during the fourth quarter of fiscal 2008 and the first half of fiscal 2009. Additionally, Elizabeth Arden expects its gross margins to be impacted in the fourth quarter of fiscal 2008 and through the first half of fiscal 2009 by the sale of Liz Claiborne inventory that Elizabeth Arden acquired prior to the effective date as a distributor. After including the full impact of these costs, Elizabeth Arden expects this transaction to be accretive to earnings in the first half of fiscal 2009. Elizabeth Arden will provide further discussion and guidance for fiscal 2009 during its fourth quarter fiscal year 2008 conference call in August 2008.

The effectiveness of the licensing agreement is subject to satisfaction of certain conditions, including satisfaction of the requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Terms of the agreement were not disclosed.

Elizabeth Arden: Skincare. Color. PREVAGE. Fragrances (Red Door, 5th Avenue, Green Tea, Mediterranean, Provocative Woman). Fragrance Portfolio: Elizabeth Taylor. Mariah Carey. Britney Spears. Hilary Duff. Danielle Steele. Alberta Ferretti. Alfred Sung. Badgley Mischka. Bob Mackie. GANT. Geoffrey Beene. Halston. Nanette Lepore. Rocawear. Giorgio of Beverly Hills. Daytona 500(r). HUMMER(r). PS Fine Cologne.

About Liz Claiborne: Liz Claiborne Inc. designs and markets a global portfolio of retail-based premium brands including Kate Spade, Juicy Couture, Lucky Brand and Mexx. Liz Claiborne Inc. also has a refined group of department store-based brands with strong consumer franchises including the Liz Claiborne and Monet families of brands, Enyce, Kensie, Mac & Jac, Narciso Rodriguez and the licensed DKNY Jeans Group. Liz Claiborne Inc. also offers cosmetics & fragrances. For more information visit www.lizclaiborneinc.com.

Elizabeth Arden, Inc. Forward-Looking Statement

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 its 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, Elizabeth Arden, Inc.’s expectations regarding the license of the Liz Claiborne fragrance portfolio, including the impact of the license on our fiscal 2008 and 2009 net sales and earnings, and Elizabeth Arden, Inc.’s expectation that all conditions to the effectiveness of the licensing agreement discussed above will be satisfied. 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 Elizabeth Arden, Inc.’s results of operations:

• factors affecting Elizabeth Arden, Inc.’s relationships with its customers or its customers’ businesses, including the absence of contracts with customers, customers’ financial condition, and changes in the retail, fragrance and cosmetic industries, such as the consolidation of retailers and the associated closing of retail doors as well as retailer inventory control practices, including but not limited to levels of inventory carried at point of sale and practices used to control inventory shrinkage;
• Elizabeth Arden, Inc.’s reliance on third-party manufacturers for substantially all of its owned and licensed products and the absence of contracts with suppliers;
• delays in shipments, inventory shortages and higher costs of production due to the loss of or disruption in Elizabeth Arden, Inc.’s distribution facilities or at key third party manufacturing or fulfillment facilities that manufacture or provide logistic services for its products;
• Elizabeth Arden, Inc.’s ability to respond in a timely manner to changing consumer preferences and purchasing patterns and other international and domestic conditions, and events that impact consumer confidence and demand, such as economic downturns;
• Elizabeth Arden, Inc.’s ability to protect our intellectual property rights;
• the success, or changes in the timing or scope, of Elizabeth Arden, Inc.’s new product launches, advertising and merchandising programs;
• the quality, safety and efficacy of Elizabeth Arden, Inc.’s products;
• the impact of competitive products and pricing;
• risks of international operations, including foreign currency fluctuations, hedging activities, economic and political consequences of terrorist attacks, and political instability in certain regions of the world;
• Elizabeth Arden, Inc.’s ability to implement its growth strategy and acquire or license additional brands or secure additional distribution arrangements, to successfully and cost-effectively integrate acquired businesses or new brands, such as the Liz Claiborne fragrance brands, and to finance its growth strategy and its working capital requirements;
• Elizabeth Arden, Inc.’s level of indebtedness, debt service obligations and restrictive covenants in its revolving credit facility and the indenture for its 7 3/4% senior subordinated notes;
• changes in product mix to less profitable products;
• the retention and availability of key personnel;
• changes in the legal, regulatory and political environment that impact, or will impact, Elizabeth Arden, Inc.’s business, including changes to customs or trade regulations or accounting standards or critical accounting estimates;
• success of, and costs associated with, Elizabeth Arden, Inc.’s recently announced restructuring plan; 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 Elizabeth Arden, Inc. makes 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 Elizabeth Arden, Inc. undertakes 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 to predict all of such factors. Further, Elizabeth Arden, Inc. cannot assess the impact of each such factor on its 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. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in Elizabeth Arden, Inc.’s Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended June 30, 2007.

Liz Claiborne Inc. Forward-Looking Statement

Statements contained herein that relate to future events or Liz Claiborne Inc.’s future performance, including, without limitation, statements with respect to Liz Claiborne Inc.’s anticipated results of operations or level of business for 2008 or any other future period, are forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations only and are not guarantees of future performance, and are subject to certain risks, uncertainties and assumptions. Liz Claiborne Inc. may change its intentions, belief or expectations at any time and without notice, based upon any change in Liz Claiborne Inc.’s assumptions or otherwise. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. In addition, some factors are beyond Liz Claiborne Inc.’s control. Among the factors that could cause actual results to materially differ include: risks associated with the current macroeconomic conditions, including the possibility of a recession in the United States and the rising price of fuel; risks related to the reorganization of Liz Claiborne Inc. into two segments and the related realignment of Liz Claiborne Inc.’s management structure; risks associated with Liz Claiborne Inc.’s ability to attract and retain talented, highly qualified executives and other key personnel; risks associated with providing for the succession of senior management; risks associated with Liz Claiborne Inc.’s ability to execute successfully on its previously announced long-term growth plan; risks associated with Liz Claiborne Inc.’s strategic review of brands, including whether Liz Claiborne Inc. identified the appropriate brands for review or appropriately valued assets related to brands sold or licensed to third parties; risks associated with Liz Claiborne Inc.’s operation and expansion of its specialty retail business, including the ability to successfully expand the specialty retail store base of its Direct Brands segment and to develop best-in-class retail capabilities; risks associated with Liz Claiborne Inc.’s ability to achieve greater collaboration with its wholesale customers; risks associated with Liz Claiborne Inc.’s ability to achieve projected cost savings; Liz Claiborne Inc.’s ability to continue to have the liquidity necessary, through cash flow from operations and financing, to fund its plans may be adversely impacted by a number of factors, including the downgrading of Liz Claiborne Inc.’s credit rating; risks associated with the continuing challenging retail conditions, including the levels of consumer confidence and discretionary spending and the levels of customer traffic within department stores, malls and other shopping and selling environments; risks related to Liz Claiborne Inc.’s ability to successfully continue to evolve its supply chain system, including its product development, sourcing, logistics and technology functions, to, among other things, reduce product cycle-time and costs and meet customer demands and the requirements of the projected growth in Liz Claiborne Inc.’s specialty retail business; risks associated with selling Liz Claiborne Inc.’s Liz & Co. and Concepts by Claiborne brands outside of better department stores; risks associated with Liz Claiborne Inc.’s Liz Claiborne and Claiborne branded products association with known designers and customer acceptance of the resulting products; risks associated with Liz Claiborne Inc.’s dependence on sales to a limited number of large United States department store customers; the impact of consolidation, restructurings and other ownership changes in the retail industry, such as the merger between Federated Department Stores, Inc. and The May Department Store Company; Liz Claiborne Inc.’s ability to respond to constantly changing consumer demands and tastes and fashion trends, across multiple product lines, shopping channels and geographies; risks related to retailer and consumer acceptance of Liz Claiborne Inc.’s products; risks associated with the possible failure of Liz Claiborne Inc.’s unaffiliated manufacturers to manufacture and deliver products in a timely manner, to meet quality or safety standards or to comply with Company policies regarding labor practices or applicable laws or regulations; risks related to Liz Claiborne Inc.’s ability to adapt to and compete effectively in the current quota environment, including changes in sourcing patterns resulting from the elimination of quota on apparel products as well as lowered barriers to entry; risks relating to certain litigations currently outstanding against Liz Claiborne Inc., including litigations filed against Mexx Europe with respect to breach of contract claims by a former high street concession partner in France; risks associated with Liz Claiborne Inc.’s ability to maintain and enhance favorable brand recognition; risks associated with Liz Claiborne Inc.’s ability to correctly balance the level of its commitments with actual orders; risks associated with Liz Claiborne Inc.’s ability to identify appropriate business development opportunities and risks associated with acquisitions and new product lines, product categories and markets, including risks relating to integration of acquisitions, retaining and motivating key personnel of acquired businesses and achieving projected or satisfactory levels of sales, profits and/or return on investment, and risks inherent in licensing arrangements such as Liz Claiborne Inc.’s license of the DKNY Jeans and DKNY Active brands; risks associated with any significant disruptions in Liz Claiborne Inc.’s relationship with its employees or with its relationship with the unions which represent certain Company employees; risks associated with changes in social, political, economic, legal and other conditions affecting foreign operations, sourcing or international trade, including the impact of foreign currency exchange rates, and currency devaluations in countries in which Liz Claiborne Inc. sources product and risks associated with the importation and exportation of product; risks associated with war, the threat of war and terrorist activities; work stoppages or slowdowns by suppliers or service providers; risks relating to protecting and managing Liz Claiborne Inc.’s intellectual property rights; and such other economic, competitive, governmental and technological factors affecting Liz Claiborne Inc.’s operations, markets, products, services and prices and such other factors as are set forth in Liz Claiborne Inc.’s Quarterly Report on Form 10-Q for the quarter ended April 5, 2008 and Liz Claiborne Inc.’s 2007 Annual Report on Form 10-K, including, without limitation, those set forth under the headings “Risk Factors” and “Statement Regarding Forward-Looking Disclosure.” Liz Claiborne Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Elizabeth Arden, Inc.; Liz Claiborne Inc.

     Elizabeth Arden
     Marcey Becker, Senior Vice President, Finance
       (203) 462-5809

     Liz Claiborne
     Jane Randel, Vice President, Corporate Communications
       (212) 626-3408
     Robert Vill, Vice President, Finance and Treasurer
       (201) 295-7515

Elizabeth Arden, Inc. is proud to announce the launch of Britney Spears™ believe official website featuring the new fragrance by Britney Spears, which is now available for pre-order online from the Elizabeth Arden Online Fragrance Store.

Be the first to own BRITNEY SPEARS™ believe and receive an exclusive BRITNEY SPEARS™ believe T-shirt as your FREE gift while supplies last. Pre-order now. Ships 9/24/2007

Ceramide Ultra Gold Capsules are now available for purchase online from the Elizabeth Arden Online Store.

Also available for consumers who wish to learn more about skincare and how Ceramide can help slow aging signs in skin, Tony Vargas, Elizabeth Arden’s Vice President of research and Development, offers his expert advice on Ceramide.

Elizabeth Arden, Inc. is proud to announce the launch of Mediterranean, The Fragrance Website which features the inspiration behind the fragrance, the design and the overall Mediterranean Collection. Fans are treated with extra goodies such as screen savers and wall papers.

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.

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.

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  $