ILXP International Luxury Products Inc (PK)

International Luxury Proucts (ILXP) is pleased to announce that the merger with American Luxury Products, Inc., (ALP) has been approved by both ILXP and ALP shareholders. Based on preliminary unaudited year-end figures, ILXP achieved its 2005 sales goal of $1.3 million, an increase of approximately 20% over the previous year. Operating expenses were in line with expectations. However, compliance costs, specifically auditor fees, were substantially higher due to certain regulatory issues associated with our reverse merger and public listing. Revenues from direct sales channels increased, improving margins. In 2005, direct sales from the new Dallas retail store, rodeos and western shows accounted for an estimated 30% of revenue. This is the first phase of ILXP's strategic realignment of Bohlin distribution channels toward more direct sales. Management believes that this strategy will help Bohlin capitalize on increasing demand for its products by increasing inventory turnover and improving margins. In this regard, it is notable that Bohlin's direct sales were strong at leading western-themed events, especially those held in the 4th quarter, such as the National Finals Rodeo in Las Vegas, where sales increased an estimated 43% over the prior year. Management believes that rodeo sales will continue to increase, as rodeo attendance grows. According to statistics cited in The Wall Street Journal, the largest pro circuit drew 24 million spectators in 2004. "We are pleased with the results of 2005," said David K. Marold, ILXP President. "We devoted a great deal of attention to restructuring the Company and re-focusing its strategy. As a result, we weren't able to fully exploit the sales potential of our products. Nevertheless, based on preliminary figures, we achieved our 2005 sales goals, which represent an increase of 20% over 2004." The foregoing financial results are unaudited, and are therefore preliminary and are subject to change based on completion of the 2005 year-end audit and final management review. Management is also pleased to announce that Bohlin was the recipient of the award for best jewelry design at the 2005 Western Design Conference. The conference in Cody, Wyoming, has become known as the world's preeminent exhibition of western furniture, fashion and accessories. The Company is pleased to announce a joint venture program between Resistol, a leading hat maker, and Edward H. Bohlin, a wholly-owned subsidiary of ILXP. Bohlin's custom silver hatband buckles are featured on selected Resistol hats. In 2006, Bohlin enters the custom furniture business through a co-branding agreement with Steelstrike Leather Products to produce silver mounted furniture featuring handcrafted custom Bohlin appointments. Steelstrike is a leading manufacturer of traditional wood and hand tooled leather furniture in distinctive Colorado "cattle baron" and "lodge" styles. International Luxury Products, Inc. is publicly quoted on the Pink Sheets under the symbol ILXP. Formerly known as Dermalay (DMLY.PK), the Company was renamed after its recent merger with American Luxury Products, Inc. International Luxury Products, Inc. was founded to capitalize on market opportunities in prestige watches, leather and related luxury goods. The Company has two divisions-- The Bohlin Company and Julien Coudray. The Bohlin Company is a designer and marketer of high-quality, Western watches, classic jewelry, buckles and belts and accessories. Bohlin's products include those based on designs created decades ago by one of the original creators of western style, company founder, Edward Bohlin. Our products have been worn by many international celebrities. Current lines include the classic "Spirit of the West" watch line, the contemporary western "Country Club" line of belts and watches, and a new line bearing the prestigious Edward H. Bohlin name. Julien Coudray is a supplier of luxury watches, including the Julien Coudray 1518, exclusive luxury, 'haute horlogerie' timepieces. SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Various statements made in this release are forward-looking and involve a number of risks and uncertainties. Our forward looking statements are based on our current expectations, assumptions, estimates and projections about our Company and involve significant risks and uncertainties, including: conduct, completion and satisfactory result of the 2005 year-end audit; absence of any significant audit changes or adjustments and any variations between estimated and actual amounts for the Company's critical accounting estimates and other significant accounting estimates. If these or other significant risks and uncertainties occur, or if our estimates or underlying assumptions prove inaccurate, our actual results could differ materially and the conditions to the consummation of the merger may not be satisfied. You are urged to consider all such risks and uncertainties. All statements that address activities, events or developments that we intend, expect or believe may occur in the future, including projections of earnings per share and same store sales, are forward-looking statements. The following are some of the factors that could cause actual results to differ materially from the forward-looking statements: our ability to continue successful expansion of our store base; risks of expansion; our ability to successfully implement our opportunistic inventory strategies and to effectively manage our inventories; consumer confidence, demand, spending habits and buying preferences; effects of unseasonable weather; competitive factors; factors affecting availability of store and distribution center locations on suitable terms; factors affecting our recruitment and employment of associates; factors affecting expenses; success of our acquisition and divestiture activities; our ability to successfully implement technologies and systems and protect data; our ability to continue to generate adequate cash flows; availability and cost of financing; general economic conditions, including gasoline prices; potential disruptions due to wars, natural disasters and other events beyond our control; changes in currency and exchange rates; import risks; adverse outcomes for any significant litigation; changes in laws and regulations and accounting rules and principles; effectiveness of internal controls; and other factors that may be described in filings with the Securities and Exchange Commission. We do not undertake to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized.