Inter Parfums, Inc. Announces Record Third Quarter Results

Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported record results for the third quarter ended September 30, 2008. All share and per share amounts have been adjusted to reflect the retroactive effect of the 3 for 2 stock split effected on May 30, 2008.

Third Quarter 2008 Compared to Third Quarter 2007:

• Net sales rose 21% to $123.5 million from $102.3 million; at comparable foreign currency exchange rates, net sales were up 16% for the period;
• European-based operations achieved sales of $108.8 million, a 23% increase compared to $88.1 million, in the same period last year;
• Sales by U.S.-based operations rose 4% to $14.7 million from $14.2 million in the same period last year;
• Gross margin was 55% compared to 59% with the decrease primarily attributable to the effect the decline of the U.S. Dollar against the euro had on European-based product sales to U.S. customers;
• S, G & A expense as a percentage of sales was 45% compared to 47%;
• Operating margins were 9.1% of net sales as compared to 12.1%;
• Net income increased 9% to $6.2 million, as compared to $5.7 million; and,
• Diluted earnings per share increased 11% to $0.20, from $0.18 per diluted share.

Thus, net sales for the nine months ended September 30, 2008 increased 28% to $345.8 million from last year’s $270.2 million; in constant dollars, nine month net sales were up 22%. Net income increased 23% to $18.7 million or $0.60 per diluted share from $15.2 million or $0.49 per diluted share in the first nine months of 2007.

Jean Madar, Chairman of the Board and Chief Executive Officer of Inter Parfums, noted, "As we previously reported, the current third quarter included two major new product launches, Van Cleef & Arpels Feerie and Jeanne Lanvin. These two major new product launches were responsible for much of the top line growth. Additionally, Burberry fragrance sales have continued to increase with this year’s growth driven by the successful worldwide launch of the new women's line Burberry The Beat. ST Dupont Passenger, a new scent for men and women, also launched during the quarter. We will elaborate further on our 2009 launch schedule when we provide our initial guidance for 2009 later this month. Burberry The Beat for men has recently previewed exclusively at Bloomingdale’s and is doing well. The global rollout is set to begin in early 2009. Also, as our Paris-based subsidiary announced in September, we have Lanvin L’Homme Sport unveiling next summer, with tennis sensation, Rafael Nadal, the Wimbledon, French Open and 2008 Olympic Gold medal winner, as our model and spokesperson.”

He continued, "Net sales by U.S.-based operations rose 4% despite the high hurdle set in last year’s third quarter with the rollout of Gap personal care products to their North American stores. In the current third quarter, the year-over-year sales growth by U.S.-based operations was primarily attributable to the international distribution of both Gap and Banana Republic products. The final quarter of 2008 will include initial sales of Brooks Brothers New York, our first new fragrance collection for men and women, which is now in all U.S. Brooks Brothers locations. Also, the color cosmetics we developed and produced for bebe stores are now in their U.S. stores and we are making progress with a signature fragrance for the brand, which is expected to come to market next year.”

Russell Greenberg, Executive Vice President & CFO pointed out, "Through the first nine months of this year, our consolidated effective tax rate was 34%. For the first six months of 2008 we endured an effective tax rate of 39% as valuation allowances needed to be provided on deferred tax assets relating to operating loss carryforwards from our four European distribution subsidiaries. Effective in the third quarter of 2008, Nickel S.A., a wholly-owned subsidiary of Inter Parfums, S.A., was merged into Inter Parfums, S.A. As a result of the merger, the Company recognized the utilization of certain foreign operating loss carryforwards for which valuation allowances had previously been recorded. As a result, the tax provision has been reduced by a benefit of approximately $0.7 million.”

Mr. Greenberg concluded, "Based on the results of the first nine months of the year and the delivery schedules set for the fourth quarter, we are reaffirming our 2008 guidance which calls for net sales of approximately $460 million and net income of approximately $26.8 million or $0.87 per diluted share. Our guidance assumes the dollar remains at current levels.”

Quarterly Dividend

The Company’s regular quarterly cash dividend of $0.033 per share will be payable on January 15, 2009 to shareholders of record on December 31, 2008.

Conference Call

Management will conduct a conference call to discuss financial results and business developments at 11:00 am ET on Tuesday, November 11, 2008. Interested parties may participate in the call by dialing 706-679-3037; please call in 10 minutes before the conference call is scheduled to begin and ask for the Inter Parfums call. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to www.interparfumsinc.com and click on the Investor Relations section. Please go to the website at least 15 minutes early to register, and download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at Inter Parfums’ website. We suggest listeners use Microsoft Explorer as their browser.

Inter Parfums, Inc. develops, manufactures and distributes prestige perfumes and cosmetics as the exclusive worldwide licensee for Burberry, Paul Smith, S.T. Dupont, Christian Lacroix, Quiksilver/Roxy, and Van Cleef & Arpels. The Company also owns Lanvin Perfumes and Nickel, a men’s skin care company. It also produces personal care products for specialty retailers under exclusive agreements with Gap, Banana Republic, New York & Company, Brooks Brothers and bebe stores. In addition, Inter Parfums produces and supplies mass market fragrances and fragrance related products. The Company’s products are sold in over 120 countries worldwide.

Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases you can identify forward-looking statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. You should not rely on forward-looking statements because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings "Forward Looking Statements” and "Risk Factors" in Inter Parfums' annual report on Form 10-K for the fiscal year ended December 31, 2007 and the reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.