Decorize, Inc. Secures Financing for Production Expansion

SPRINGFIELD, Mo., March 23, 2006 (PRIMEZONE) -- Decorize, Inc. (AMEX:DCZ), a leading supplier and manufacturer of home accents, announced today that $1,360,000 of capital has been raised by the Company, which will be used for the expansion of production capacity. The Company is experiencing a dramatic increase in demand for its products, which is exceeding current production capacity. "The majority of this capital will be used to double the production capacity in our factory in Indonesia as well as expand our supply chain infrastructure in China and India," said Steve Crowder, President and Chief Executive Officer of Decorize, Inc. "We believe that the increase in customer orders and our ability to meet them following this investment of capital will yield positive financial results within the next quarter."

Three major investors have exercised outstanding common stock warrants to provide $610,000 of the capital raised, and Quest Commercial Finance, LLC will provide a $750,000 Line of Credit to be used for production expansion and marketing initiatives. Management reviewed a number of proposals from various financial institutions before recommending that the Board of Directors approve the current financing. Brent Olson, Vice President of Finance for Decorize, Inc., commented on the financing by saying, "The alternative proposals that we received were rejected because of their dilutive effect on current shareholders and/or on the price to the Company. Management wanted to scale the Company without severely diluting current shareholders, and after six months of careful evaluation, the final decision by the Board was able to accomplish both initiatives."

In conjunction with the financing, several shareholders will be converting debt in exchange for shares of the Company's common stock. "We are pleased with this vote of confidence by these major shareholders, and the resulting improvement to Decorize's balance sheet," said Crowder. "These changes combined with the projected financial improvements over the next few quarters will greatly enhance all financial metrics."

Decorize, Inc., founded in 2000, is a recognized leader in the home accents industry. The company has developed a vertically integrated design, sourcing and logistics model that reduces costs traditionally channeled into home furnishings. Decorize has served more than 3,000 small and large retail accounts, including national brand names such as La-Z-Boy, Hancock Fabrics, May/Federated Stores, Neiman Marcus, Rooms To Go, and Sears -- The Great Indoors.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:Statements about the future performance of Decorize, economic trends, and other forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including and without limitation, continued acceptance of Decorize's products, increased levels of competition for the company, new products and technological changes, Decorize's dependence on third-party suppliers, and other risks detailed from time to time in Decorize's periodic reports filed with the Securities and Exchange Commission. Decorize provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release.


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