Inter Parfums, Inc. reported record third quarter 2006 results. Net sales increased 19% to $89.7 million from $75.4 million. At comparable foreign currency exchange rates, third quarter net sales were 13% ahead of last year’s third quarter; Sales by European operations were $76.1 million, up 13% compared to $67.1 million; U.S. operations generated $13.6 million in sales, up 64% from $8.3 million; Gross margin was 54% of net sales as compared to 56% with the decline attributable to increased sales of lower margin U.S. product lines and increased point of purchase promotional activities during the period in support of the Company’s aggressive 2006 prestige fragrance launch schedule; S, G & A as a percentage of sales declined to 44% from 47%; and, Net income increased to $4.6 million or $0.23 per diluted share from $3.8 million or $0.18 per diluted share. Through the first nine months of 2006 net sales, increased to $230.9 million, up 11% from $207.9 million one year earlier; at comparable foreign currency exchange rates, net sales were also up 11%. Year-to-date net income was $12.3 million or $0.60 per diluted share as compared to $11.4 million or $0.56 per diluted share in the first nine months of 2005. Jean Madar, Chairman & CEO of Inter Parfums noted, “The current third quarter demonstrates a number of our special strengths. One of these is our ability to take an established fragrance brand to the next level. That was especially the case with Lanvin, with comparable quarter sales up 56% (in local currency) due primarily to the launch of Rumeur and the continued strength of Eclat d’Arpege. The Lanvin model will be adapted in the new year for Van Cleef & Arpels fragrance, where we plan to build upon its approximately $20 million sales base by promoting the two strongest families, First and Tsar, and create an entirely new line for launch in 2008.” He went on to say, “Another Inter Parfums strength is our ability to continue to grow the largest brand in the portfolio, Burberry, which achieved a 5% gain in comparable quarter sales. The successful introduction and rollout of Burberry London had a nominal impact on the other fragrance families within the brand.” Mr. Madar continued, “We have also proven that we can establish and grow fragrance franchises for brands where there were none. That is best exemplified with Paul Smith, where we’ve gone from a license signing in 1999 to four fragrance families today. We look forward to similar success with the recent addition of the Quiksilver/Roxy license and the first new Roxy fragrance launch in 2007.”