Decorize Inc. Announces Fiscal 2006 Results

                      Company Reports Lower Net Loss
            Sales Increased 19% in Last Two Fiscal Quarters

SPRINGFIELD, Mo., Oct. 5, 2006 (PRIMEZONE) -- Decorize, Inc. (AMEX:DCZ), a recognized leader in the home accents industry, filed its fiscal 2006 results last week with the Securities and Exchange Commission on Form 10-KSB. While revenues for the fiscal year ended June 30, 2006 declined 14.4% to $9.2 million, the company posted a lower net loss of $2.2 million, which was an improvement versus the $2.6 million loss reported for the prior fiscal year. Furthermore, over the last two quarters of fiscal 2006 the company posted a 19% increase in sales, to $5.7 million, versus $4.8 million over the same period in the last fiscal year. Also over the last two fiscal quarters of 2006, the company's net loss was reduced substantially to $780,000, compared to a $2,075,000 loss in the last two quarters of fiscal 2005.

"We are beginning to see dramatic improvements in our financial results," said Steve Crowder, Decorize, Inc.'s Chief Executive Officer. "Both fiscal 2005 and 2006 were transition years. We upgraded our management team and built a supplier base of over 40 certified partners in China, Italy and India. We also opened our own factory in Yogyakarta, Indonesia, which employs 250 people. And finally, we implemented a business model that will leverage our value to independent retail stores with large retailers and furniture manufacturers."

"Over the past twelve months our employees in Indonesia have been subject to tsunamis, earthquakes and volcanoes," added Vik Karode, Vice President of Worldwide Production Operations. "We have literally and figuratively weathered the storms while doubling our production capacity to meet sales demand. We have also recently begun shipping orders from our factory in Indonesia directly to retail stores utilizing our ship direct model. We are now able to consolidate multiple orders and products on the same container, thereby reducing supply chain costs while improving lead times."

According to industry trade publication Home Accents Today, the largest market segment of the $67 billion a year home accent industry is Independent Home Accent and Gift retailers. Decorize's sales to this channel grew 65% in fiscal 2006, and the category represented over 50% of the Company's sales in fiscal 2006.

Mr. Crowder concluded, "We are optimistic about our prospects in the coming year at Decorize. We are seeing the benefits of our focus on the independent retailer, which typically dictates the trends for the broader industry. Additionally, we will be launching a national line of accessories for a major manufacturer at the October Highpoint furniture market, which should help drive critical sales volume for Decorize."

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 serves more than 3,000 small and large retail accounts, including national brand names such as La-Z-Boy, Hancock Fabrics, Federated Department 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.

CONTACT:  Decorize, Inc.
          Steve Crowder
          Gaylen Ball

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