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EXHIBIT (c) (1)
FOR: Marisa Christina, Incorporated
For Immediate Release
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CONTACT: Michael Lerner
Chairman and Chief Executive Officer
(212) 221-5770
S. E. Melvin Hecht
Vice-Chairman and Chief Financial Officer
(201) 758-9800
MARISA CHRISTINA INC. SELLS FLAPDOODLES, INC.
New York, New York, January 2, 2001 - Marisa Christina, Incorporated
(Nasdaq: MRSA) announced today that it has sold substantially all the assets,
properties and rights and assigned certain liabilities of Flapdoodles, Inc. for
approximately $4.7 million in cash and stock to a newly formed corporation owned
by Marc Ham and Carole Bieber. Marc Ham has been the President of the
Flapdoodles, Inc. division since it was purchased in 1993. Carole Bieber has
been Executive Vice President and Design Director for the Flapdoodles, Inc.
division since 1993. Mr. Ham has also served as Vice Chairman of the Board of
Directors of Marisa Christina, Inc. Mr. Ham has resigned his positions as a
Board member and Vice Chairman.
Michael H. Lerner, Chairman of Marisa Christina, Inc. commented, "We
feel that this move should allow both companies to focus on their core
strengths. This will enable us at Marisa Christina to devote our energies to our
women's business, which has been steadily improving in the past six months and
at the same time be able to look at new opportunities and alliances. In
connection with the sale, Marisa Christina will record certain charges in the
fourth quarter ended December 31, 2000 of approximately $8.0 million, which
includes the write-off of goodwill related to the purchase of Flapdoodles, Inc.
of approximately $5.8 million. The one-time Flapdoodles charge as well as other
negative factors, including a lackluster retail performance will cause us to
have a significant loss in the fourth quarter of 2000, instead of the flat
earnings that we had originally expected."
"At this time, the company is debt free with a strong balance sheet. The
outlook for the new year is still excellent and we are anticipating earnings per
share to be $.50 to $.70 in 2001," Mr. Lerner concluded.
Marisa Christina, Inc. designs, manufactures, sources and markets a
broad line of high quality "better" clothing for women and children. The Marisa
Christina label includes sweaters characterized by classic, timeless styling and
unique details. Flapdoodles apparel consists of casual children's and infant's
sportswear, swimwear and outerwear clothing featuring vibrant colors,
all-natural fabrics and unique patterns.
Except for historical information contained herein, the statements in this
release are forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties
which may cause the Company's actual results in future periods to differ
materially from forecasted results. Those risks include, among others, risks
associated with the success of future advertising and marketing programs, the
receipt and timing of future customer orders, price pressures and other
competitive factors and a softening of retailer or consumer acceptance of the
Company's products leading to a decrease in anticipated revenues and gross
profit margins. Those and other risks are described in the Company's filings
with the Securities and Exchange Commission (SEC), copies of which are available
from the SEC or may be obtained upon request from the Company.
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