Elizabeth Arden Completes Bank Covenant Renegotiation

Elizabeth Arden has completed the renegotiation with its bank group of certain maintenance covenants incorporated in its $175 million asset-based credit facility which expires in 2006. Previously the company had disclosed that it was in negotiations with its bank group to amend certain covenants in light of changed economic circumstances. The agreement includes a waiver of non-compliance with certain covenants for the fourth quarter of fiscal 2002 and amends the related covenant levels for each quarter of fiscal 2003 and the first three quarters of fiscal 2004.

The agreement amends selected additional sections of the bank agreement. Elizabeth Arden executives commented that the company believes the amended covenants better reflect current market conditions and will provide adequate financial flexibility during the next several years.