SPRINGFIELD, Mo. (PRNewswire) - Decorize, Inc., an emerging-growth provider of direct sourcing solutions for the global home decor market, reported today its financial results for the fourth quarter and year ended June 30, 2002. The company generated fourth quarter sales of $4.7 million. For its fiscal year ended June 30, 2002, the company posted revenues of $14.1 million, an increase of $13.0 million over the period March 6, 2000 to June 30, 2001. The Company reported an operating loss of approximately $0.9 million, excluding non-cash charges such as stock-related compensation. After including such non-cash expenses, the company lost approximately $2.0 million or $0.20 per share.

"We continue to make significant progress in building relationships with the leading home furnishings retailers," said Jon Baker, Decorize's Chief Executive Officer. "These efforts have already yielded significant results, as we finished our Fiscal Year with the highest revenue quarter in our history."

Separately, the Company has determined that in accordance with FIN 44 "Accounting for Certain Transactions Involving Stock Options" it previously recorded a non cash stock compensation charge greater than required in the second and third quarters of fiscal 2002. Consequently, Decorize is revising its Quarterly Financial Statements for those quarters to reflect the lower charges. The total stock compensation charge for the year is $753,893, which is less than the $778,187 previously recorded for the nine-months ended March 31, 2002. The stock compensation expense for the second quarter is reduced to $154,598 from the $230,985 previously recorded and the third quarter expense is reduced to $227,098 from the previously recorded $392,603. These quarterly revisions result in a decrease in the net loss in the second quarter to $55,038 from $131,425, and a decrease in the third quarter loss to $1,063,152 from $1,228,657. These revisions only affect the previously filed second and third quarterly financial statements and do not affect the annual results presented in the Company's 10-KSB, which was filed today.

About Decorize, Inc.

Decorize, Inc. is the proprietor of a breakthrough sourcing, logistics and technology model that reduces the non-value added costs that have traditionally been channeled into the home furnishings category. The company strips away layers of handling and storage steps to deliver products directly from the Far East to the doors of retailers, at unprecedented cost savings. Decorize has served more than 2,000 small and large retail accounts, including national brand names Dillard's, Rooms To Go and Sears -- The Great Indoors.

The company's business model affords aggressive savings for large retailers and also for small retailers. Decorize deploys a "one-price" approach at Decorize.com. For the first time in the industry, small retailers can ship directly from the Far East with a minimum order of $1,000 while enjoying cost savings of up to 30% over wholesale prices. Decorize offers over 10,000 SKUs through its brands: Faith Walk, GuildMaster and decorize.com. Additional information on the company and its products can be found at http://www.decorize.com/.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the company's products, increased levels of competition for the company, new products and technological changes, the company's dependence on third-party suppliers, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.