decorize.com: The world's decor, right to your store

SPRINGFIELD, Mo., Feb. 18 /PRNewswire-FirstCall/ -- Decorize, Inc. (AMEX: DCZ), an emerging-growth provider of direct sourcing solutions for the global home decor market, reported its net revenues for the second quarter were $4.1 million, which is an 8% increase versus the same period last year. The Company recorded an operating loss of $12,005 compared to an operating profit of $2,530 for the prior year period. Decorize recorded a net loss of $146,654, or ($0.01) per basic share for the second quarter of fiscal 2003, compared to a net loss of $55,038, or ($0.01) per share for its second quarter of fiscal 2002. The Company's 2003 second quarter results include a $0.01 per share, non-cash charge for amortization of discount related to the Company's convertible debt.

For the six month period ended December 31, 2002, revenues increased 39% to $9.3 million from $6.7 million for the first six months of fiscal year 2002. The Company reported an operating profit of $290,400 compared to an operating loss of $133,041 for the same period last year. For the six month period December 31, 2002, net earnings were $17,541 or $0.00 per basic and diluted share versus a loss of $234, 983 or ($0.02) per share in the same period last year. The current six month period includes a ($0.02) per share non-cash charge for amortization of discount related to the Company's convertible debt.

"We are pleased that we have been able to maintain our revenues in spite of the weak economy and the resulting softness in our industry last quarter," said Jon Baker, Decorize's Chief Executive Officer. "We are continuing investments in personnel and infrastructure in anticipation that our growth will continue."

About Decorize, Inc.

Decorize, Inc. has developed a sourcing, logistics and technology model that reduces various costs that have traditionally been channeled into the home furnishings category. The company delivers products directly from the Far East to its retailer customers and reduces or eliminates handling and storage costs, which results in substantial cost savings. Decorize has served more than 2,000 small and large retail accounts, including national brand names such as Dillard's, Rooms To Go and Sears -- The Great Indoors.

Decorize's business model seeks to provide aggressive savings for large retailers and also for small retailers. Small retailers can ship directly from the Far East with a minimum order of $1,000 while enjoying substantial cost savings over competitors' 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.

Statements about the future performance of Decorize, economic trends, and other 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 Decorize's products, increased levels of competition for the company, new products and technological changes, Decorize's dependence on third-party suppliers, and other risks detailed from time to time in Decorize's periodic reports filed with the Securities and Exchange Commission. Decorize provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release.