* Purchase price to be $54 million; transaction expected to close
in November 2006 NEW YORK, Oct. 31 /PRNewswire-FirstCall/ -- Iconix
Brand Group Inc. (NASDAQ:ICON) ("Iconix") today announced it has
entered into a definitive agreement to purchase the brand Ocean
Pacific ("OP") from The Warnaco Group, Inc. (NASDAQ:WRNC)
("Warnaco") for $54 million in the aggregate. The OP brand is a
leading global action sports lifestyle brand that is over 35 years
old and currently has 30 license agreements, half of which are
international. Primary licensed categories include footwear, kid's
apparel, eyewear, fragrance, skateboards and surfboards. As part of
the transaction, Warnaco will be granted a license from Iconix to
continue to manufacture and sell women's and junior swimwear.
According to Neil Cole, Chairman and CEO of Iconix, "The action
sports lifestyle segment is an area that Iconix has been seeking to
penetrate. OP is the original action sports lifestyle brand with
tremendous authenticity, high brand awareness and applicability to
a broad variety of consumer products, including apparel,
accessories and sports equipment like surf, snow and skate boards.
OP has a large global footprint with 15 different international
licensees, and Iconix believes it can expand OP's international
business further and significantly grow the brand's penetration in
the U.S." Joe Gromek, Warnaco's President and Chief Executive
Officer, said, "As part of our strategy to increase shareholder
value, we continually assess our portfolio of brands and licenses
to ensure we focus on our strongest platforms for growth. While we
have made significant progress in the restructuring of the OP
business, the sale will allow us to increase our attention on our
core brands and on our international opportunities, which are the
key drivers of our growth strategy. Additionally, given the
strength of the OP brand, we are pleased to maintain our
association with the OP swimwear business." Pursuant to the
purchase agreement, Warnaco will be paid $10 million in cash at
closing, which is anticipated to be in November 2006. The remainder
of the purchase price will be in the form of a short term note from
Iconix. The note is payable in full on or prior to December 31,
2006 through a combination of cash of not less than $17 million and
shares of Iconix common stock. Iconix may at its election extend
payment of the note until January 31, 2007, at which time it would
have paid cash of not less than $30.5 million and the remainder in
Iconix common stock. About Iconix: Iconix Brand Group Inc.
(NASDAQ:ICON) owns, licenses and markets a growing portfolio of
consumer brands including CANDIE'S (R), BONGO (R), BADGLEY MISCHKA
(R), JOE BOXER (R) RAMPAGE (R) MUDD (R) and LONDON FOG (R). The
Company has also entered into definitive agreements to purchase the
brands MOSSIMO (R) and OCEAN PACIFIC (R) which is anticipated to
close this month. The Company licenses its brands to a network of
leading retailers and manufacturers that touch every major segment
of retail distribution from the luxury market to the mass market in
both the U.S. and around the world. Iconix, through its in-house
advertising, promotion and public relations agency, markets its
brands to continually drive greater consumer awareness and equity.
Iconix Brand Group Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995. The statements that are
not historical facts contained in this press release are forward
looking statements that involve a number of known and unknown
risks, uncertainties and other factors, all of which are difficult
or impossible to predict and many of which are beyond the control
of the Company, 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 factors include, but are not
limited to, uncertainty regarding the results of the Company's
acquisition of additional licenses, continued market acceptance of
current products and the ability to successfully develop and market
new products particularly in light of rapidly changing fashion
trends, the impact of supply and manufacturing constraints or
difficulties relating to the Company's licensees' dependence on
foreign manufacturers and suppliers, uncertainties relating to
customer plans and commitments, the ability of licensees to
successfully market and sell branded products, competition,
uncertainties relating to economic conditions in the markets in
which the Company operates, the ability to hire and retain key
personnel, the ability to obtain capital if required, the risks of
litigation and regulatory proceedings, the risks of uncertainty of
trademark protection, the uncertainty of marketing and licensing
acquired trademarks and other risks detailed in the Company's SEC
filings. The words "believe", "anticipate," "expect", "confident",
"project", provide "guidance" and similar expressions identify
forward-looking statements. Readers are cautioned not to place
undue reliance on these forward looking statements, which speak
only as of the date the statement was made. About Warnaco: The
Warnaco Group, Inc., headquartered in New York, is a leading
apparel company engaged in the business of designing, marketing and
selling intimate apparel, menswear, jeanswear, swimwear, men's and
women's sportswear and accessories under such owned and licensed
brands as Warner's(R), Olga(R), Lejaby(R), Body Nancy Ganz(tm),
Speedo(R), Anne Cole(R), Op(R), Ocean Pacific(R), Cole of
California(R) and Catalina(R) as well as Chaps(R) sportswear and
denim, J. Lo by Jennifer Lopez(R) lingerie, Nautica(R) swimwear,
Michael Kors(R) swimwear and Calvin Klein(R) men's and women's
underwear, men's, women's, junior women's and children's jeans and
women's and juniors' swimwear. The Warnaco Group, Inc. notes that
this press release contains "forward- looking statements" within
the meaning of Rule 3b-6 under the Securities Exchange Act of 1934,
as amended, Rule 175 under the Securities Act of 1933, as amended,
and relevant legal decisions. The forward-looking statements
involve risks and uncertainties and reflect, when made, the
Company's estimates, objectives, projections, forecasts, plans,
strategies, beliefs, intentions, opportunities and expectations.
Actual results may differ materially from anticipated results or
expectations and investors are cautioned not to place undue
reliance on any forward-looking statements. Statements other than
statements of historical fact are forward-looking statements. These
forward-looking statements may be identified by, among other
things, the use of forward-looking language, such as the words
"believe," "anticipate," "estimate," "expect," "intend," "may,"
"project," "scheduled to," "seek," "should," "will be," "will
continue," "will likely result," or the negative of those terms, or
other similar words and phrases or by discussions of intentions or
strategies. The following factors, among others and in addition to
those described in the Company's reports filed with the SEC
(including, without limitation, those described under the headings
"Risk Factors" and "Statement Regarding Forward- Looking
Disclosure," as such disclosure may be modified or supplemented
from time to time), could cause the Company's actual results to
differ materially from those expressed in any forward-looking
statements made by it: economic conditions that affect the apparel
industry; the Company's failure to anticipate, identify or promptly
react to changing trends, styles, or brand preferences; further
declines in prices in the apparel industry; declining sales
resulting from increased competition in the Company's markets;
increases in the prices of raw materials; events which result in
difficulty in procuring or producing the Company's products on a
cost-effective basis; the effect of laws and regulations, including
those relating to labor, workplace and the environment; changing
international trade regulation, including as it relates to the
imposition or elimination of quotas on imports of textiles and
apparel; the Company's ability to protect its intellectual property
or the costs incurred by the Company related thereto; the Company's
dependence on a limited number of customers; the effects of the
consolidation of the retail sector; the Company's dependence on
license agreements with third parties; the Company's dependence on
the reputation of its brand names, including, in particular, Calvin
Klein; the Company's exposure to conditions in overseas markets in
connection with the Company's foreign operations and the sourcing
of products from foreign third-party vendors; the Company's foreign
currency exposure; the Company's history of insufficient disclosure
controls and procedures and internal controls and restated
financial statements; unanticipated future internal control
deficiencies or weaknesses or ineffective disclosure controls and
procedures; the sufficiency of cash to fund operations, including
capital expenditures; the Company's ability to service its
indebtedness, the effect of changes in interest rates on the
Company's indebtedness that is subject to floating interest rates
and the limitations imposed on the Company's operating and
financial flexibility by the agreements governing the Company's
indebtedness; the Company's dependence on its senior management
team and other key personnel; disruptions in the Company's
operations caused by difficulties with the new systems
infrastructure; the limitations on purchases under the Company's
share repurchase program contained in the Company's debt
instruments, the number of shares that the Company purchases under
such program and the prices paid for such shares; the failure of
newly acquired businesses to generate expected levels of revenues;
the failure of the Company to successfully integrate such
businesses with its existing businesses (and as a result, not
achieving all or a substantial portion of the anticipated benefits
of the acquisition); and such newly acquired business being
adversely affected, including by one or more of the factors
described above and thereby failing to achieve anticipated revenues
and earnings growth. The Company encourages investors to read the
section entitled "Risk Factors" and the discussion of the Company's
critical accounting policies under "Management's Discussion and
Analysis of Financial Condition and Results of Operations --
Discussion of Critical Accounting Policies" included in the
Company's Annual Report on Form 10-K, as such discussions may be
modified or supplemented by subsequent reports that the Company
files with the SEC. The discussion in this press release is not
exhaustive but is designed to highlight important factors that may
affect actual results. Forward-looking statements speak only as of
the date on which they are made, and, except for the Company's
ongoing obligation under the U.S. federal securities laws, the
Company disclaims any intention or obligation to update or revise
any forward- looking statements, whether as a result of new
information, future events or otherwise. For Iconix: David Conn
Executive Vice President Iconix Brand Group 212.730.0030 Joseph
Teklits Corporate Relations 203.682.8200 For Warnaco: Deborah
Abraham 212.287.8289 DATASOURCE: Iconix Brand Group Inc. CONTACT:
David Conn, Executive Vice President, +1-212-730-0030; or Joseph
Teklits, Corporate Relations, +1-203-682-8200, both of Iconix Brand
Group; or Deborah Abraham, for Warnaco, +1-212-287-8289 Web site:
http://iconixbrand.com/
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