PLANTATION, Fla., Feb. 17 /PRNewswire-FirstCall/ -- Dreams, Inc.
(OTC Bulletin Board: DRMS) today announced its financial results for the third
quarter ended December 31, 2003.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010628/FLTH007LOGO )
For the third quarter of fiscal 2004 total revenues were $9.6 million,
compared to $6.3 million for the same period last year, an increase of 52%.
Income before taxes was $1.0 million this quarter versus $874,000 in the same
quarter a year ago. Net income was $605,000 in the current quarter as
compared to $522,000 last year, an increase of 16%.
For the nine months ended December 31, 2003, total revenues were
$16.4 million, compared to $14.3 million for the same period last year, an
increase of 15%. Income before taxes was $544,000 this year versus $1.3
million in the same period a year ago. Net income was $328,000 in the current
year as compared to $770,000 last year.
Ross Tannenbaum, Dreams' President and CEO commented, "We are very
pleased, not only with the financial results of our fiscal third quarter, but
also with the amount of growth we were able to achieve in such a short period
of time because of the tremendous effort of our entire organization. Over the
past few months, we expanded the company-owned retail stores to 13 stores,
opening seven units since mid-September in time for the holiday season. This
was a very challenging task. Additionally, we completed the acquisition of
FansEdge, Inc. in October and generated significant retail revenues during the
holiday season though www.fansedge.com, an e-commerce site which sells a
diversified selection of sports licensed products.
"Each of our two retail brands had considerable success during the
quarter. Same store December sales for the five company-owned Field of Dreams
stores, which were open during both full important holiday periods, increased
20% over the prior year. We were able to achieve the improvement because of
our ability to better determine the proper product mix, pricing structure and
further developing the customer base of each store. We have only been in the
company-owned store since March 2002 and have been continually seeking better
ways to drive sales and increase profits. We plan to continue to identify
opportunities to open new stores and leverage the size of the chain, whenever
possible, into better, preferred pricing structures for products and desirable
leasing situations as we now have multiple stores in similar mall ownership
structures.
"FansEdge added a nice boost to the Company during the quarter. We
completed the acquisition in October in time to capitalize on the important
holiday season and we were able to generate significant revenue and profit
through the FansEdge website. During the same period of time in the prior
year (October through December) when FansEdge was separately owned, the
website generated about half of the revenue it generated this year. The
reason for the increase relates to the synergies employed by Dreams after the
acquisition, increased awareness of the website and brand with internet
shoppers due to marketing and promotional efforts and increased product
offerings. Additionally, FansEdge entered into an agreement with Amazon.com
in July 2003 to sell FansEdge products on Amazon's website which generated
significant incremental revenues. Orders for products, exclusive of Amazon
related orders, increased approximately 75% over the same period last year.
We look forward to continuing the growth and increasing the awareness of
FansEdge as it represents our entry into retail commerce generated through the
internet.
"Also of interest, was The Greene Organization's successful campaign with
the release of Pete Rose's autobiography 'My Prison Without Bars,' which
attained #1 on The New York Times' Best Sellers List in January," concluded
Mr. Tannenbaum.

Dreams, Inc. sets itself apart from other traditional memorabilia
companies with diversified products and services provided through its
operating subsidiaries. Mounted Memories, its wholesale division, is a leader
in production of authentic sports and celebrity autographed memorabilia and
collectibles. Field of Dreams, its exclusively licensed franchise system, has
retail stores located in 37 premier shopping malls across the country, 13 of
which are company-owned through Dreams Retail Corporation ("DRC").
Additionally, through DRC we generate e-commerce revenues through www.fansedge.com, an acquisition completed in October 2003. The Greene
Organization organizes promotional and personal appearance events for current
and former athletes. Farley Art features the artwork of the famous sports and
celebrity artist, Malcolm Farley.

DREAMS, INC. TRADES PUBLICLY UNDER THE SYMBOL DRMS.
Statements contained in this press release, which are not historical
facts, are forward-looking statements. The forward-looking statements in this
press release are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements made
herein contain a number of risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties include, but are
not limited to, specific factors impacting the Company's business including
increased competition; the ability of the company to expand its operations and
attract and retain qualified personnel, the uncertainty of consumer's desires
for sports and celebrity memorabilia; the availability of product;
availability of financing; the ability to sell additional franchises; and
general economic conditions.

SOURCE Dreams, Inc.
-0- 02/17/2004
/CONTACT: Investors, David M. Greene of Dreams, Inc., +1-954-377-0002/
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010628/FLTH007LOGO
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/Web site: http:// www.fansedge.com /
(DRMS)

CO: Dreams, Inc.
ST: Florida
IN: MLM SPT ADV OTC
SU: ERN