Computer Imaging of Wig Hairstyles

SOUTH EASTON, MA - - SPECIALTY CATALOG CORP. (NASDAQ National Market: CTLG), a leading direct marketer targeting niche consumer product categories, today announced it has signed a worldwide agreement with CyberImaging Systems, Inc. to jointly develop and market a computer based hairstyle imaging system to salons and other retailers, incorporating Specialty Catalog Corp.'s wig and hairpiece products and brand names.

The agreement provides for CyberImaging to incorporate Specialty Catalog Corp.'s wigs and hairpieces into its software imaging system, as well as to develop new derivative systems for Specialty Catalog to use in direct mail, wholesale, retail and Internet applications. Specialty Catalog and CyberImaging will work together to market the computer imaging system to salons and other retailers, as well as to develop new outlets and opportunities, utilizing the system to create a retail wig and hairpiece network.

Commenting on the agreement, Steven Bock, Chairman & Chief Executive Officer of Specialty Catalog, stated, "We are excited about the short and long term opportunities this agreement offers Specialty Catalog Corp. The Cyberimaging system allows us to market immediately to our customers and potential customers a way to'try on'wig styles from their home by simply sending us a photo. In addition, by working with Cyberimaging to market the imaging system into salons and other retail outlets, we are offering salons and other retailers the opportunity to sell our wig styles and hairpieces to their customers in an exciting and innovative manner, without the need to invest heavily in inventory. With the system's'virtual try on'capability and a stylist's expertise, a woman can be assured of finding the style just right for her."

"Longer term," Mr. Bock continued, "we expect this technology to facilitate home trial of our products via our Internet site using a computer or television and, maybe eventually, via video telephones' The current development work for our Internet site and operating systems is being done with these longer term opportunities in mind."

Echoing Mr. Bock's enthusiasm, Hal Wilson, President of Cyberimaging noted, "By combining forces with Specialty Catalog, we expect to accelerate our penetration of the hair and wig salon market for computer imaging, offering our customers another revenue opportunity by working with America's largest and leading wig and hairpiece retailer. In addition, by combining marketing efforts and other resources, we hope to strengthen the opportunity to develop a substantial installed base of computer imaging systems in the United States and internationally."

Specialty Catalog Corp. is a direct marketer targeting niche consumer product categories through a variety of catalogs. The Company is the leading U.S. retailer of women's wigs and hairpieces through its Paula Young@ and Christine Jordan@ catalogs. The Company also offers AfricanAmerican women a broad selection of quality products, including wigs, hairpieces, hats, accessories, apparel and personal care items through its

Especially Yours@ catalogs; and markets hats, accessories, apparel and related products through its Paula's Hatbox@ catalogs. Through its subsidiary, Daxbourne International Limited, the Company is a leading retailer and wholesaler of women's wigs and hairpieces in the United Kingdom. The Company also markets continuing education courses and other products to nurses and CPAs through its Western Schools@ catalogs.

Cyberlmaging Systems, Inc., based in Raleigh, NC, is a leader in hairstyle imaging software. The flagship product, Cyberimaging, is a computer-based too] that allows professional stylists to simulate a client's appearance with new hairstyles, colors or wigs as part of their client consultation process. In addition to promoting Specialty Catalog's wig and hairpiece lines,

Cyberlmaging is used by cosmetology schools, hair replacement centers and retailers to promote beauty-related products. The Company also markets Cyberlmaging through distributors in Canada, the United Kingdom, Israel, Russia and Italy.

Statements contained herein that are not historical data may be forwardlooking statements that are subject to a variety of risks and uncertainties. There are a number of factors that could cause the Company's actual results to differ materially from those expressed in, or suggested by, any forward-looking statements made by the Company. These factors include, but are not limited to, the Company's ability to achieve its revenue goals which are dependent on the effectiveness of the Company's catalogs and marketing and advertising programs; the Company's ability to effectively manage its costs and expenses which are affected by, among other items, changes in postal rates, paper prices and media costs; as well as those risks set forth in the Company's Annual Report on Form 1 O-K, periodic reports on Forms 1 O-Q and other filings made with the Securities and Exchange Commission from time to time.

SPECIALTY CATALOG -OR- INVESTOR RELATIONS
CORP.: COUNSEL:

Steven L. Bock, Chairman, The Equity Group Inc.
CEO, President Marie Driscoll (212) 836-9605
(508) 230-8283 Linda Latman (212) 836-9609
E-mail:pywigs!sbock@aftmaii.com

Bill Heise, Sr. VP & CFO
(508) 238-0199
E-mail:pywigs!bheise@aftmaii.com

CYBERIMAGING SYSTEMS, INC.:
Hal E. Wilson, President
(919) 844-0435
E-mail:hwilson@cyberimaging.com

Vicki Dooling, VP Sales & Marketing
(702) 294-0408
E-mail:vdooling@cyberimaging.com

Specialty Catalog is represented by the investor relations firm of KCSA.