Wet Seal : IRVINE

Nature of Business: Retail chain of mid-priced clothing and accessory stores whose primary market is younger, activity-oriented women. Employees Total: 1,600; In Orange County: 300 Stock Designation: Listed on NASDAQ as “Wet Seal” Ticker Symbol: “WTSLA” Friday’s Close: $11.75 One-Week Change: -$0.625 Analyst Review: “There are very few retail companies with such demonstrated profitability for being so young. They generate $375 per square foot in sales which is about 50% higher than their average competitor. They have all the necessary components in place to aggressively expand-- merchandising, operations, distribution and a strong financial position; they have no debt. They’re impressive.”-- Tom Tashjian, retail analyst, First Manhattan Co., New York Sales vs Profits Dollar amounts in millions

Year Net Sales Net Profit 87 $19.4 $0.7 88 $30.8 $0.7 89 $45.0 $1.9 90 $78.7 $5.9 91 $107.4 $7.2

Corporate Outlook: “Wet Seal will continue to grow at approximately 20 stores per year. And, without abandoning our retailing concepts, in two years we will be much less of a California company and more of a national company.”--Alan A. Weinstein, Chief Financial Officer. 5-YEAR SUMMARY: RETURN ON STOCKHOLDER INVESTMENT

Fiscal year ending Jan. 31, ’87 Jan. 30, ’88 Jan. 28, ’89 52-Week High/Low* N/A N/A N/A Price Per Share N/A N/A N/A Net Earnings Per Share $0.07 $0.08 $0.19 Price to Earnings Ratio N/A N/A N/A Average Return to Investor 46% 35% 56% Number of Stores 3 45 59

Fiscal year ending Feb. 3, ’90 Feb. 2, ’91 52-Week High/Low* N/A $19/$6.50 Price Per Share N/A $13.25 Net Earnings Per Share $0.62 $0.65 Price to Earnings Ratio N/A 20.1 Average Return to Investor 84% 26% Number of Stores 73 93

*The Wet Seal Inc. was privately held until July, 1990, when it began trading publicly. For more information call or write The Wet Seal, Inc.: 64 Fairbanks, Irvine, Ca. 92718 (714) 583-9029 Source: The Wet Seal Inc.; Newport Securities Corp. Researched by: DALLAS M JACKSON / Los Angeles Times