E Com Ventures, Inc. conducts all of its operations through two wholly owned subsidiaries, Perfumania, Inc. (Perfumania) and perfumania.com, inc. (perfumania.com). Perfumania is a specialty retailer and wholesale distributor of a range of brand name and designer fragrances and related products. perfumania.com, inc. is an Internet retailer of fragrances and other specialty items. The Company operates in two business segments: specialty retail sales, and wholesale distribution of fragrances and related products. As of January 28, 2006, Perfumania operated a chain of 239 retail stores specializing in the sale of fragrances. Perfumania's stores are located in 34 states, the District of Columbia and Puerto Rico, including 40 locations in Florida, 23 in Texas, 21 in California, 18 in New York and 16 in Puerto Rico. perfumania.com offers a selection of the Company's products for sale over the Internet, and serves as an alternative shopping experience to Perfumania retail customers. Perfumania, Inc. Perfumania operates its retail business through Magnifique Parfumes and Cosmetics, Inc., a wholly owned subsidiary of Perfumania, although the stores are generally operated under the name Perfumania. Perfumania's retail stores are generally located in regional malls, manufacturers' outlet malls, life style centers, airports and on a standalone basis in sub-urban strip shopping centers. Each of Perfumania's retail stores generally offer approximately 300 different fragrance brands for women and men at prices up to 75% below the manufacturers' suggested retail prices. Stores stock brand name and designer brands, such as Estee Lauder, Yves Saint Laurent, Calvin Klein, Giorgio Armani, Gucci, Ralph Lauren/Polo, Perry Ellis, Liz Claiborne, Giorgio, Hugo Boss, Halston, Christian Dior, Chanel, Cartier and Paris Hilton. Perfumania also carries a private-label line of bath and body treatment products under the name Jerome Privee. Perfumania's stores are full-service stores. Its standard store design includes signs and merchandise displays. Perfumania's stores average approximately 1,400 square feet, however stores located in manufacturers' outlet malls are larger than Perfumania's other stores. During the fiscal year ended January 28, 2006 (fiscal 2005), Perfumania opened 26 stores and closed five stores. Perfumania operates its wholesale business directly. Its wholesale division distributes fragrances and related products primarily to an affiliate. During fiscal 2005, Perfumania distributed fragrances on a wholesale basis to Quality King Distributors, Inc. (Quality King). Quality King distributes pharmaceuticals, health and beauty care products and fragrances. Quality King accounted for 100% of net wholesale sales during fiscal 2005. perfumania.com, inc. perfumania.com is engaged in the sale of fragrance and other specialty items through Internet. The Company's retail Internet address is www.perfumania.com. The Internet site displays a larger number of products. perfumania.com's online store provides its customers with selection, pricing and convenience.

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