Aussie Apparel Announces 5 for 1 Forward Stock Split.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--May 27, 2003

Aussie Apparel, Inc. (OTCBB:AAPP) announced today that its board of directors has approved a five-for-one forward stock split of the company's common stock.

The forward split will be effective on Tuesday, May 27th, 2003 to the holders of record of Aussie Apparel's common stock as of the close of business on May 21, 2003. The new shares will be issued by the company's transfer agent when certificates are physically surrendered, by replacing each share surrendered with 5 new shares, or if part of the DTC System, shares will be automatically adjusted for on the same basis. Following the split the company's ticker symbol will change from OTC-BB: AAPP to OTC-BB: AAPR.

"As the company continues to expand, management wants to be prepared with a capital structure more suited to a company with our growth potential," said Bruce MacGregor, Aussie Apparel's President & CEO. "We continue to work on strategic agreements on a worldwide basis that we feel will have a material impact on the company and strongly believe that the 5 for 1 forward stock split will be more advantageous to increasing shareholder value."

Recent developments at Aussie Apparel have resulted from management's focus on growing revenue over the next five years. In early April, Aussie Apparel announced a licensing agreement for all three of its brands in the South Pacific region, including Australia and New Zealand, requiring minimum sales of AUS$53.8 million over five years. In early May, the company announced plans to sell into Canada with its Hot Tuna and Xisle brands, with forecasted sales of US$15.0 million over five years. On May 12th, Aussie Apparel announced that two key extreme sports apparel chains, Zumiez and Tilly's, had agreed to start carrying the Hot Tuna brand in September 2003. Revenue from the Hot Tuna brand is an important part of Aussie Apparel's forecast of US$280 million in domestic sales over the next five years.

About Aussie Apparel Group, Ltd.

Aussie Apparel Group is an emerging growth apparel company focused on the rapidly growing board-sports apparel market, both domestically and internationally, utilizing a multi-branded and multi-distribution channel approach. According to Sporting Goods Intelligence, the US sports apparel market was an estimated $19.08 billion at wholesale in 2002. The Company currently owns four brands, including Hot Tuna, which is focused on the surfing enthusiast, Xisle, a mid-tier label that targets both the surf and skate market, and Piranha Boy and Piranha Girl, directed at the children's market with surf inspired apparel for the mass-market. For more information visit: http://www.aussieapparelgroup.com/

Safe Harbor:

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.