On April 9, 2003, involuntary Chapter 11 petitions were filed in the United States Bankruptcy Court for the Eastern District of New York (the "Bankruptcy Court") against each of Allou Distributors, Inc., M. Sobol, Inc., Direct Fragrances, Inc. and Stanford Personal Care Manufacturing, Inc. and orders for relief were entered against these companies on April 10, 2003.

On April 18, 2003, additional involuntary Chapter 11 petitions were filed in the Bankruptcy Court against Rona Beauty Supplies, Inc. and Trans World Grocers, Inc. and orders for relief were entered against these companies on May 1, 2003.

On April 25, 2003, Allou filed voluntary Chapter 11 petitions on behalf of HBA National Sales Corp., HBA Distributors, Inc., Pastel Cosmetic & Beauty Aids Inc. and Core Marketing, Inc. These ten cases are being jointly administered under lead case number 03-82321 (MLC) and are assigned to the Honorable Melanie L. Cyganowski. Pursuant to an order of the Bankruptcy Court dated May 30, 2003, the Bankruptcy Court approved the selection of Kenneth P. Silverman as Chapter 11 trustee.

On April 18, 2003, an involuntary Chapter 11 petition (the "Involuntary Petition") was filed against Allou Healthcare, Inc. ("AHI"). On May 7, 2003, AHI filed an Answer contesting the allegations of the Involuntary Petition. On July 11, 2003, a Consent Order was signed pursuant to which AHI (a) withdrew its Answer and consented to the entry of an Order for Relief in Chapter 11, (b) consented to the joint administration of the AHI case with debtors' cases pending under Case No. 803-82321-511, Allou Distributors, Inc. et al. ("Joint Debtors"), and (c) consented to the appointment of a disinterested, independent Chapter 11 Trustee which "may be the same person that was appointed trustee" in the Joint Debtors' cases. On July 15, 2003, an Order for Relief was entered by the Court. On July 22, 2003, an Order was entered approving the United States Trustee's selection of Kenneth P. Silverman as interim Chapter 11 trustee in the AHI case, effective as of July 11, 2003.

On September 16, 2003, an Order was entered converting the Debtors' Chapter 11 cases to cases under Chapter 7. Kenneth M. Silverman was appointed Chapter 7 Trustee of the Debtors' estates.

To inspect documents filed with the Bankruptcy Court, you may access the Court's website at www.nyeb.uscourts.gov. Please contact the administrator of the PACER court records system at www.pacer.psc.uscourts.gov to get an Internet password to gain access to documents.

Please note that neither the Clerk of the Bankruptcy Court nor The Garden City Group, Inc., the Claims and Noticing Agent, is permitted to give legal advice.