COLUMBIA, Md., Oct.29 /PRNewswire/ -- The Cosmetic Center, Inc.
(Nasdaq: COSC) today announced results for its third quarter ended September
26, 1997.  The Company noted that its results reflect the merger of Revlon,
Inc.'s retail outlet subsidiary, Prestige Fragrance & Cosmetics, Inc.
("Prestige"), with and into The Cosmetic Center, Inc. effective April 25,
1997.  Due to the "reverse acquisition" accounting for the merger (in which
Prestige is considered the acquirer), the financial statements of the Company
for periods prior to the merger include the results of Prestige alone and the
financial statements of the Company for periods after the merger include the
results of Prestige and Cosmetic Center.
    Net sales were $45.4 million for the quarter ended September 26, 1997
compared to $20.0 million for the quarter ended September 30, 1996.  The
increase is attributable primarily to incremental sales resulting from the
combination of Prestige and the Company as a result of the merger.  Comparable
store sales for the quarter ended September 26, 1997 were $16.1 million as
compared to $19.7 million for the quarter ended September 30, 1996 primarily
due to disruptions experienced in the distribution and warehouse consolidation
and in the post merger transition and the impact of the UPS strike in August
1997.
    Operating loss for the quarter ended September 26, 1997 was $0.2 million
as compared to operating income of $0.9 million in the same period last year
primarily due to the decline in comparable store sales for the quarter ended
September 26, 1997.  Net loss for the quarter was $1.3 million, or $.13 per
share, compared to net income of $0.5 million, or $.06 per share, in the same
period last year.  Per share amounts are based upon the weighted average
common shares outstanding for the period assuming the number of shares issued
to Revlon in the merger were outstanding for all periods prior to the merger.
    "With the move to our new warehouse and corporate headquarters facility in
Columbia, Maryland completed in the third quarter, we look forward to further
efficiencies from the merger including facilities consolidation and systems
integration," said I. Howard Diener, President and Chief Executive Officer.
"The expansion into our new Maryland facility will provide the capacity needed
for our future growth."

    Nine Month Results
    Net sales for the nine months ended September 26, 1997 were $94.7 million
as compared to $49.0 million for the nine months ended September 30, 1996.
The increase is attributable primarily to incremental sales resulting from the
combination of Prestige and the Company as a result of the merger.  Comparable
store sales for the nine months ended September 26, 1997 were $42.1 million as
compared to $47.9 million for the nine months ended September 30, 1996
primarily due to disruptions experienced in the consolidation and in the post
merger transition and the impact of the UPS strike in August 1997.
    Operating loss for the nine months ended September 26, 1997 was $7.0
million after a (non-recurring) charge of $4.0 million in the quarter ended
June 27, 1997, compared to a loss of $2.7 million in the same period last
year.  The charge was in connection with the consolidation of distribution,
warehouse and headquarters operations.  Net loss for the nine months ended
September 26, 1997 was $9.3 million, or $1.00 per share, compared to a net
loss of $3.4 million, or $.41 per share, for the nine months ended September
30, 1996.

    Salon Licensing Agreement
    The Company also announced that it had entered into an exclusive agreement
to license its salon operations to Creative Hairdressers, Inc. of Falls
Church, Virginia, which operates a chain of over 600 hair salons under the
name "Hair Cuttery."  During the fourth quarter, Hair Cuttery will begin to
operate salons in Cosmetic Center stores.
    "This agreement will allow us to focus on our core business of selling
cosmetics, fragrance and hair and personal care products at value prices,"
said Diener.  "Hair Cuttery's salon expertise will enable us to provide the
highest and most professional level of salon services to our customers, while
continuing to offer a full range of products, including professional haircare
products, to meet our customers' needs."
    The Cosmetic Center, Inc. is a specialty retailer of brand name cosmetic,
fragrance, skincare, hair and personal care products and related items, sold
at value prices.  The Company has 262 stores in the U.S., operating
principally under the names The Cosmetic Center(R) and Prestige Fragrance &
Cosmetics.  All 64 Cosmetic Center stores offer a broad range of brand name
prestige and mass merchandised products.  Cosmetic Center stores are located
in the mid Atlantic region and Chicago.  The 198 Prestige Fragrance &
Cosmetics stores are located in outlet malls nationwide and sell surplus and
discontinued products from a wide variety of major manufacturers.

    Forward Looking Statements
    Information in this press release contains forward looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.  Such statements include, without limitation, statements
regarding the consolidation and integration of operations of the Cosmetic
Center and Prestige and expectations as to efficiencies expected to result
from the merger and expectations as to future growth.  In addition to factors
that may be described in the Company's commission filings, the following
factors, among others, could cause the Company's actual results to differ
materially from those expressed in any forward looking statements made by the
Company: (1) difficulties or delays in integrating or unanticipated costs to
integrate the operations of the Cosmetic Center and Prestige, and (2)
difficulties or delays in realizing the benefits of efficiencies as a result
of the merger and in realizing future growth.  The Company assumes no
responsibility to update forward-looking information contained herein.


                          THE COSMETIC CENTER, INC.
                 Unaudited Condensed Statements of Operations
           (dollars in thousands, except share and per share data)

                               Three Months Ended        Nine Months Ended
                             Sept. 26,    Sept. 30,    Sept. 26,    Sept. 30,
                               1997         1996         1997         1996

    Net sales               $45,355      $19,996      $94,687      $48,970
    Cost of sales
     including buying,
     occupancy and
     distribution            32,250       12,824       65,908       32,150
    Selling, general and
     administrative
     expenses                13,330        6,300       31,732       19,517
    Business consolidation
     costs                       --           --        4,000           --
    Operating expenses       45,580       19,124      101,640       51,667
    (Loss) income from
     operations                (225)         872       (6,953)      (2,697)
    Interest expense         (1,120)        (308)      (2,292)        (699)
    Other income (expense),
     net                         26           --          (38)          --
    (Loss) income before
     income taxes            (1,319)         564       (9,283)      (3,396)
    Provision for
     income taxes                --           15           20           45
    Net (loss) income       $(1,319)        $549      $(9,303)     $(3,441)
    Net (loss) income
     per common share        $(0.13)       $0.06       $(1.00)      $(0.41)
    Weighted average
     shares outstanding  10,015,101    8,479,335    9,345,665    8,479,335


                          THE COSMETIC CENTER, INC.
                           Condensed Balance Sheets
                (dollars in thousands, except per share data)

                                      September 26,       December 31,
    ASSETS                                1997               1996
                                       (Unaudited)

    Current assets:
     Cash and cash equivalents          $3,591             $3,479
     Accounts receivable, net            1,321                 --
     Inventories                        89,935             31,713
     Deferred tax assets                 2,879                 --
     Prepaid expenses and other          1,332                773
       Total current assets             99,058             35,965
    Property and equipment, net         14,625              7,616
    Other assets                         1,116                589
    Intangible assets
     related to businesses
     aquired, net                        5,890              1,451
       Total assets                   $120,689            $45,621

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
     Accounts payable                  $24,925             $2,242
     Accrued expenses and other          9,812              2,385
       Total current liabilities        34,737              4,627
    Note payable - parent               13,255             12,315
    Long-term debt - third party        37,423                 --
    Other long-term liabilities          5,266                 --
    Stockholders' equity                30,008             28,679
       Total liabilities and
        stockholders' equity          $120,689            $45,621

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