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Saxena White P.A. Announces Shareholder Suit Against Parlux Fragrances Incorporated

A complaint was filed today against Parlux Fragrances Incorporated ("Parlux" or the "Company") (NASDAQ: PARL) in the United States District Court for the Southern District of Florida, accusing the Company of securities law violations.

You can obtain a copy of the complaint from the Court, by contacting Saxena White P.A. at (800) 361-5096, or by emailing the firm at amccook@saxenawhite.com.

The complaint seeks damages for violations of federal securities laws on behalf of all investors who acquired Parlux securities from February 8, 2006 through and including August 10, 2006 (the "Class Period"). Based in Ft. Lauderdale, Florida, Parlux is a manufacturer and distributor of fragrances and beauty products.

The lawsuit claims that Parlux, its Chief Executive Officer Ilia Lekach, and its Chief Financial Officer Frank Buttacavoli, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Further, the lawsuit alleges that throughout the Class Period, defendants issued highly positive statements in an effort to create the impression that Parlux's revenues were growing and the Company was well positioned to generate strong profits. In response, Parlux stock traded at over $37 per share (prior to a stock split) during the Class Period. Starting in June 2006, the truth about the Company's declining sales and accounting issues were revealed in a series of disclosures indicating that: (1) contrary to prior public statements, Parlux's sales were declining materially, including sales to related parties; and (2) the Company suffered from internal control issues with respect to its financial reporting, causing Parlux to delay the filing of its Annual Report on Form 10-K for the year ended March 31, 2006, and delaying its quarterly report on Form 10-Q for the quarter ending June 30, 2006. Prior to revealing this information, defendants and Company insiders sold over $13 million worth of their Parlux holdings.

On August 10, 2006, the Company issued yet another shocking announcement, that Parlux's profit for the quarter ended June 30, 2006 would be far less than the investing public had been led to believe, due mainly to lower sales to U.S. department stores and related parties. On this news, Parlux stock plunged from $8.16 a share to $4.78, a drop of over 40% on unusually high volumes of over 5 million shares traded -- vastly higher than the Company's average trading volume of around 1.1 million shares traded.

If you acquired Parlux securities from February 8, 2006 through and including August 10, 2006, you may wish to contact the following attorneys at Saxena White P.A. to discuss your rights and interests:

Maya Saxena
msaxena@saxenawhite.com
or
Joseph White
jwhite@saxenawhite.com

Saxena White P.A.
2424 North Federal Highway
Suite 307
Boca Raton, FL 33431
(800) 361.5096

If you wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the court no later than October 16, 2006. You may contact the attorneys at Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.

Saxena White P.A. has offices in Boca Raton, San Francisco, and Boston, and specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals.