Dreams, Inc. (DRJ) Announces New Alliance with Sears

Oct. 4, 2010 (Business Wire) — Dreams, Inc. (NYSE Amex: DRJ) the vertically integrated leader in the licensed sports products industry, announced another major agreement today, this time with Sears, one of the nation’s largest and oldest retailers. This new initiative approves Dreams as a key vendor for the Sears marketplace, an innovative on-line community, and by doing so, allows Dreams to offer a wide array of licensed team merchandise including hard goods and soft goods to Sears’ customers. The deal becomes effective fourth quarter of 2010.

DREAMS, INC. trades under the ticker symbol: NYSE Amex: DRJ

www.dreamscorp.com

Statements contained in this press release, which are not historical facts, are forward looking statements. The forward-looking statements in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements are indicated by words or phrases such as “anticipates,” “projects,” “management believes,” “Dreams believes,” “intends,” “expects,” and similar words or phrases. Such factors include, among others, the following: competition; seasonality; success of operating initiatives; new product development and introduction schedules; acceptance of new product offerings; franchise sales; advertising and promotional efforts; adverse publicity; expansion of the franchise chain; availability, locations and terms of sites for franchise development; changes in business strategy or development plans; availability and terms of capital including the continuing availability of our credit facility with Regions Bank or a similar facility with another financial institution; labor and employee benefit costs; changes in government regulations; and other factors particular to the Company.

Dreams, Inc.

Investor Relations:

David M. Greene, Senior Vice-President, 954-377-0002

Fax: 954-475-8785

dgreene@dreamscorp.com

or

Public Relations:

Boardroom Communications

Jennifer Clarin and/or Caren Berg, 954-370-8999

Fax: 954-370-8892

cberg@boardroompr.com