American Apparel Expands with Retail Pro.

IRVINE, Calif. -- Island Pacific, Inc. (AMEX:IPI) announced today its Retail Pro(R) division has signed a new contract with American Apparel through business partner One Step Data. The new contract will provide American Apparel with Retail Pro licenses for twenty additional stores including 100 additional users. American Apparel is a vertically integrated manufacturer, distributor and retailer of T-shirts and related products.

Mike Tomczak, President and Chief Operating Officer for Island Pacific said, "Retail Pro has proven to be an excellent solution for American Apparel. Island Pacific and One Step Data look forward to continuing to support American Apparel with the software solutions it needs as the company expands and its merchandising needs become more complex. Supporting our customers as they grow and their needs change is basic to the business strategy for both Island Pacific and One Step Data."

According to Dan Jablons, Vice-President, Sales & Administration for One Step Data, "American Apparel has demonstrated incredible growth in the short time that we've known them. They have an excellent product and great people, which is always a recipe for success. We've been able to help them by combining the power of Retail Pro software with our consulting, training, and support services. All of these elements combine to formulate a strong partnership, and continued success for everyone involved. It's very exciting!"

About American Apparel

American Apparel is the largest garment factory in the United States, employing over 3,000 people at one location. American Apparel has 11 national and 9 international retail locations. Stores are opening soon in 12 cities including Paris, Boston, Chicago, Miami, and San Diego. While creating innovative clothing, American Apparel is striving to pioneer a movement in human rights and environmental responsibility through groundbreaking methods and policies. All of their garments are cut and sewn at their 800,000-square-foot facility in downtown Los Angeles.

About One Step Data

Located in Glendale, Calif., One Step Data was founded in 1985 and is the largest reseller for Retail Pro. The company has over 1,000 clients using Retail Pro, representing over 2,500 stores that it services and supports around the globe including The Los Angeles Dodgers, Staples Center, LA County Museum of Art, TUMI Inc., Oakley Inc., Jimmy Choo Shoes, Valentino, Ashworth, Diesel USA and the Hollywood Bowl. For more information please visit www.onestepdata.com.

About Island Pacific

Island Pacific is a global leader in retail merchandising, store operations, CRM, and multi-channel software solutions. For more than 25 years, Island Pacific has developed a reputation for delivering high-quality, high-value, high-reliability software to the retail industry.

As a result, Island Pacific is a definitive resource for scalable, flexible and affordable solutions for retailers around the world. Incorporating the recently acquired Retail Technologies International (RTI) and Page Digital, Island Pacific serves over 9,000 retail clients in more than 70 countries. Represented in more than 55,000 stores worldwide and available in 15 languages, the company's technology manages billions of transactions annually under the brand names of Island Pacific Merchandising System(TM) (IPMS), Retail Pro(R), Synaro(R), and Gladiator, and is widely regarded as the thought leader in multi-channel retailing.

The company is headquartered in Irvine, California, and has offices in the United States and the United Kingdom, and is represented by business partners in over 30 countries. For more information, please visit www.islandpacific.com and www.retailpro.com.

Certain statements contained in this news release regarding matters that are not historical facts are forward-looking statements. These statements relate to future events or the Company's future performance. These statements are only predictions. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed in the Company's Form 10-KA for the fiscal year ended March 31, 2004 and other risk factors identified from time to time in the Company's filings with the Securities and Exchange Commission. IPI undertakes no obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events.