Jafra Reports Preliminary 1Q Results

Jafra Cosmetics International, Inc. Westlake, CA, said net sales in the first quarter of 2003 were $91.4 million compared to $99.1 million in the first quarter of 2002. The 8% decrease in U.S. dollar net sales resulted primarily from the weakening of the Mexican peso relative to the U.S. dollar. The U.S. Hispanic division recorded double-digit growth in net sales and operating income. The U.S. general division demonstrated moderate net sales growth and a significant improvement in operating income compared to the first quarter of 2002. The company ended the first quarter of 2003 with 401,000 consultants, up 8%. Net income decreased $7.4 million in the first quarter of 2003 compared to the first quarter of 2002. The Company has decided to continue its European operations.

Jafra is a manufacturer and marketer of premium skin and body care products, color cosmetics, fragrances and other personal care products. Jafra markets its products through a direct selling, multilevel distribution system comprised of self-employed salespersons (known as “consultants”) in 15 countries and in a number of additional countries through distributors. The Company was founded in 1956 by Jan and Frank Day, who believed that by partnering with their consultants, they could enable consultants to achieve personal, economic, and professional freedom.