New York, New York (June 10, 2008)—Frederick’s of Hollywood Group Inc. (formerly, Movie Star, Inc.) (AMEX: FOH) (“Company”) today announced financial results for its fiscal 2008 third quarter and nine months ended April 26, 2008. They represent the results of the combined company following the consummation of the merger on January 28, 2008 of the Company and FOH Holdings, Inc. (“FOH Holdings”), the parent company of Frederick’s of Hollywood, Inc.

The merger was accounted for as a reverse acquisition in which the Company was treated as the acquired company and FOH Holdings was treated as the acquiring company. The historical financial information presented for the periods and dates prior to January 28, 2008, the closing date of the merger, is that of FOH Holdings and its subsidiaries, and for periods subsequent to January 28, 2008 is that of the merged company.

Net sales for the fiscal 2008 third quarter were $60,526,000, compared to $42,835,000 for the similar period in the prior year. Gross margin, as a percentage of sales, was 35.8% for the fiscal 2008 third quarter, compared to 45.6% in the fiscal 2007 third quarter. The Company recorded a net loss of $1,985,000, or $(0.08) per diluted share, for the fiscal 2008 third quarter, as compared to net income of $1,113,000, or $0.09 per diluted share, for the fiscal 2007 third quarter.

Net sales for the nine months ended April 26, 2008 were $139,253,000, compared to $122,409,000 for the similar period in the prior year. For the first nine months of fiscal 2008, the gross margin was 38.4%, compared to 43.5% in the comparable period of fiscal 2007. For the fiscal 2008 first nine months, the Company recorded a net loss of $8,333,000, or $(0.51) per share, compared to net income $3,012,000, or $0.25 per diluted share, in the comparable period of fiscal 2007.

Although net sales for the three and nine-month periods increased due to the addition of $20,292,000 of net sales generated by the Movie Star wholesale division, we experienced decreased retail sales as a result of the challenging retail environment. Gross margin for the three and nine months also decreased due to the addition of the Movie Star wholesale division, which operates on a lower gross margin than the retail division. The gross margin for the Movie Star wholesale division for the three-month period was 28.4%. In addition, included in selling, general and administrative expenses for the three and nine months ended April 26, 2008 were one-time non-recurring merger related expenses that totaled $1,651,000 and $2,241,000, respectively. These consisted of stock compensation expense, audit fees in excess of normal audit costs, bonuses and insurance policies purchased as a requirement of the merger.

Peter Cole, Executive Chairman of the Company, stated, “As our business is dependent upon consumer demand for our products, the weakened U.S. economy and the resulting decline in consumer discretionary spending since late 2007 has negatively affected our operating results. In particular, our retail store sales have been impacted by reduced mall traffic brought on by high gasoline prices and our wholesale division has

experienced additional margin pressure. While economic conditions have also contributed to a decline in retail Internet sales, the decreases that we have experienced in this area have been primarily due to an unsuccessful transition to a new web platform. We are currently reviewing alternatives to replace and improve our legacy Internet platform, which we believe we will be able to implement during fiscal 2009.”

Mr. Cole continued, “While the macroeconomic environment continues to pose challenges to both our wholesale and retail channels, we have taken a number of actions following the consummation of the merger to reduce operating expenses. We expect that the positive impact of these cost-reduction measures, coupled with the operating cost savings and other synergies realized in the merger, will become apparent in future reporting periods. We are confident that we are building a company that will be a prominent player in the intimate apparel business for many years to come. I look forward to reporting to you on our future results.”

EBITDA is a “non-GAAP financial measure” which represents earnings before depreciation and amortization, interest and income tax expense. EBITDA is being presented as a supplemental disclosure because management believes that it is a common measure of operating performance in our industry. EBITDA should not be construed as an alternative to net income as an indicator of the Company’s operating performance, or as an alternative to cash flows from operating activities as a measure of the Company’s liquidity, as determined in accordance with generally accepted accounting principles (“GAAP”). A reconciliation of EBITDA, a non-GAAP financial measure, to GAAP is provided in the following table:

	Three Months Ended					Nine Months Ended
($ in thousands)	April 26, 2008			April 28, 2007		April 26, 2008			April 28, 2007
EBITDA, as defined	$	(227	)	$	2,921	$	(3,344	)	$	8,405
Depreciation and amortization		1,463			876		3,427			2,577
Interest		436			462		1,703			1,558
Income tax expense		—			470		—			1,258
Net income (loss) available to common shareholders	$	(2,126	)	$	1,113	$	(8,474	)	$	3,012

Certain of the matters set forth in this press release are forward-looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: competition; business conditions and industry growth; rapidly changing consumer preferences and trends; general economic conditions; large variations in sales volume with significant customers; addition or loss of significant customers; continued compliance with government regulations; loss of key personnel; labor practices; product development; management of growth, increases in costs of operations or inability to meet efficiency or cost reduction objectives; timing of orders and deliveries of products; foreign government regulations and risks of doing business abroad; and the other risks that are described from time to time in Frederick’s of Hollywood Group Inc.’s SEC reports.

Frederick’s of Hollywood Group Inc. conducts its business through two operating divisions: The “Frederick’s of Hollywood” multi-channel retail division and the “Movie Star” wholesale division.

Through “Frederick’s of Hollywood,” we primarily sell women’s intimate apparel and related products under our proprietary Frederick’s of Hollywood^® brand through more than 130 specialty retail stores nationwide, our world-famous catalog and an online shop at www.fredericks.com. By keeping an eye toward modern Hollywood as well as its own legendary history, Frederick’s of Hollywood creates innovative, alluring lingerie that is coveted by its customers. With its exclusive product offerings including Seduction by Frederick’s of Hollywood, and the Hollywood Exxtreme Cleavage Bra, Frederick’s of Hollywood is the Original Sex Symbol™.

Through “Movie Star,” we design, manufacture, import, market and distribute women’s intimate apparel, including sleepwear, robes, leisurewear and daywear, to mass merchandisers, specialty and department stores, discount retailers, national and regional chains and direct mail catalog marketers throughout the United States. Current collections include the Cinema Etoile premium line of intimate apparel and the Movie Star line of apparel sold as private label programs.

	April 26, 2008 *			July 28, 2007
	(Unaudited)			(Audited)
Assets
Current Assets
Cash and equivalents	$	1,913		$	1,898
Accounts receivable		10,113			739
Income tax receivable		207			119
Merchandise inventories		26,720			16,683
Prepaid expenses and other current assets		2,608			6,458
Deferred income tax assets		1,133			1,133
Total current assets		42,694			27,030
Property and equipment, net		23,241			17,365
Goodwill		19,100			6,678
Intangibles and other assets		27,729			19,452
Total Assets	$	112,764		$	70,525
Liabilities and Shareholders’ Equity
Current Liabilities
Revolving credit facility and term loans	$	8,975		$	6,740
Current portion of long term debt		59			4,343
Accounts payable and other accrued expenses		22,955			20,585
Total current liabilities		31,989			31,668
Deferred rent		3,721			2,744
Long-term debt-related party		12,459			15,086
Other		—			17
Deferred income tax liabilities		10,169			8,369
Total Liabilities		58,338			57,884
Preferred stock, $.01 par value – authorized, 10,000,000 shares at April 26, 2008 and 250,000 shares at July 28, 2007; issued and outstanding 3,629,325 shares of Series A preferred stock at April 26, 2008 and no shares at July 28, 2007		7,500			—
Shareholders’ Equity:
Common stock, $.01 par value – authorized 200,000,000 shares at April 26, 2008 and 20,037,840 shares at July 28, 2007; issued and outstanding 26,134,759 shares at April 26, 2008 and 11,844,591 at July 28, 2007		261			13
Additional paid-in capital		59,224			16,708
Accumulated deficit		(12,554	)		(4,080	)
Accumulated other comprehensive loss		(5	)		—
Total Shareholders’ Equity		46,926			12,641
Total Liabilities and Shareholders’ Equity	$	112,764		$	70,525

	Three Months Ended					Nine Months Ended
	April 26,			April 28,		April 26,			April 28,
	2008 *			2007		2008 *			2007
Net sales	$	60,526		$	42,835	$	139,253		$	122,409
Cost of goods sold, buying and occupancy		38,845			23,322		85,829			69,123
Gross profit		21,681			19,513		53,424			53,286
Selling, general and administrative expenses		23,230			17,482		60,054			47,534
Income (loss) from continuing operations		(1,549	)		2,031		(6,630	)		5,752
Interest expense, net		436			462		1,703			1,558
Income (loss) before income taxes and discontinued operations		(1,985	)		1,569		(8,333	)		4,194
Income tax expense		—			470		—			1,258
Net income (loss) from continuing operations		(1,985	)		1,099		(8,333	)		2,936
Discontinued operations, net of tax provision of $7 and $33 for the three and nine months ended April 28, 2007		—			14		—			76
Net income (loss)		(1,985	)		1,113		(8,333	)		3,012
Less: Preferred stock dividends		(141	)		—		(141	)		—
Net Income (loss) available to common shareholders	$	(2,126	)	$	1,113	$	(8,474	)	$	3,012
Basic net income (loss) per share from continuing operations	$	(.08	)	$	.09	$	(.51	)	$	.24
Basic net income per share from discontinued operations		—			—		—			.01
Basic net income (loss) per share	$	(.08	)	$	.09	$	(.51	)	$	.25
Diluted net income (loss) per share from continuing operations	$	(.08	)	$	.09	$	(.51	)	$	.24
Diluted net income per share from discontinued operations		—			—		—			.01
Diluted net income (loss) per share	$	(.08	)	$	.09	$	(.51	)	$	.25
Weighted average number of shares outstanding – basic		25,981			11,845		16,592			11,845
Weighted average number of shares outstanding – diluted		25,981			12,251		16,592			12,063