Parlux Fragrances Holder Demands Full Disclosure of Stock Repurchase

In an amended 13D filing on Parlux Fragrances Inc. (PARL), 12% holder Glenn H. Nussdorf disclosed a letter sent to the Board expressing his concern that the recently announced stock repurchases (10M shares representing almost 55% of the company) may be made for the purpose of, and in a manner designed to, entrench the Company's current management and Board.

Also, Mr. Nussdorf demanded, in the letter, that the Company make immediate, full and clear public disclosure of the purposes of the massive stock repurchase authorization and how it is intended that any shares repurchased by the Company, whether prior to, on, or after the record date, will be treated for purposes of his consent solicitation.

A Copy of the Letter:

Dear Board Members:

On Monday, January 8, 2007, Parlux Fragrances, Inc. (the "Company") issued a press release announcing a record date of January 17, 2007 in connection with my solicitation of consents from the Company's stockholders for the purposes of removing, without cause, all members of the Company's Board of Directors and electing myself and my five other nominees as directors of the Company.

On Tuesday, January 9, 2007, the Company issued a press release announcing that you, the Company's Board of Directors, have authorized stock repurchases of up to 10 million shares of the Company's common stock. This is an extraordinarily large stock repurchase authorization, covering almost 55% of the Company's approximately 18,430,000 outstanding shares.

In light of the fact that my consent solicitation will be commencing very shortly, that the record date is one week from today, and that the Board has just authorized massive stock repurchases, I am understandably concerned that the stock repurchases may be made for the purpose of, and in a manner designed to, entrench the Company's current management and Board of Directors. I believe that any use of corporate funds for such purpose would constitute an unconscionable breach of fiduciary duty and misuse of corporate assets and, in such event, I intend to hold you responsible.

I demand that the Company make immediate, full and clear public disclosure of the purposes of the massive stock repurchase authorization and how it is intended that any shares repurchased by the Company, whether prior to, on, or after the record date, will be treated for purposes of my consent solicitation.

Very truly yours,

Glenn H. Nussdorf

Comments

[john doe]

Very amusing amended 13D filing after the close on Friday by the company CEO, Ilia Lekach, who accuses an unnamed "financial institution" of absconding with his shares. The amended filing has rather different share counts than the original one, as well.

Watch out for fireworks on this one next week!