Bernard Chaus, Inc. Announces Results for Fiscal Third Quarter 1998.

NEW YORK--(BUSINESS WIRE)--April 28, 1998--

Company Reports Gain From Sales and Earnings Improvements

NEW YORK--(BUSINESS WIRE)--April 28, 1998--Bernard Chaus, Inc. (NYSE: CHS) today reported results for the third fiscal quarter and nine months ended March 31, 1998. Net sales for the third quarter of fiscal 1998 rose 16.0% to $49.8 million compared to $42.9 million for the third quarter last year. The Company reported net income of $3.1 million for the third quarter of fiscal 1998 compared with a net loss of $3.2 million for the third quarter last year.

For the nine month period ended March 31, 1998, net sales increased by 20.7% to $155.8 million, compared with $129.0 million in the corresponding period last year. The Company reported net income of $3.8 million for this period, with the bulk of the increase posted in the third quarter, as compared to a loss of $7.1 million in the comparable period last year.

Josephine Chaus, the Company's Chairwoman, said, "The growth and net gains announced today are the result of the financial restructuring and streamlining of operations we previously implemented, along with the strong position and performance of the Chaus product lines."

Andrew Grossman, the Company's Chief Executive Officer, added, "Today's positive results show that we are accomplishing what we set out to do. Through restructuring and streamlining of operations, we were able to significantly reduce the cost of goods sold and SG&A as a percentage of sales, while returning to profitability through strong sales and earnings growth. Looking ahead, we fully expect to meet our year-end targets and are excited about future opportunities for the Company."

Mr. Grossman also noted that the boost in net sales for the third quarter came in spite of the closing of all but one of Chaus's retail outlets during the second quarter of 1998. Sales of Chaus products, excluding those from the retail outlets that have since been closed, therefore increased approximately $10 million or 25% for the third quarter over the same period last year.

This press release contains forward-looking statements which are based upon current expectations and involve a number of uncertainties, including retail market conditions, and the continuation of the current favorable trend in sales. Further information on potential factors which could affect the Company's financial results are included in the Company's Form 10-K for the year ended June 30, 1997 and Form 10-Q for the periods ended September 30, 1997 and December 31, 1997, and the Company's rights offering prospectus dated December 10, 1997.

Bernard Chaus, Inc. designs, arranges for the manufacture of and markets an extensive range of women's career and casual sportswear which are marketed principally under the CHAUS(R), CHAUS SPORT(R) and NAUTICA(R) trademarks. The Company's products are sold nationwide through department store chains, specialty retailers and other retail outlets. -0-

                         BERNARD CHAUS, INC.
                      STATEMENT OF OPERATING DATA
     (in thousands, except number of shares and per share amounts)


                    For the Quarter Ended   For the Nine Months Ended
                     March 31,   March 31,     March 31,  March 31,
                       1998        1997           1998        1997
                     ---------------------   ----------------------
                          (Unaudited)               (Unaudited)

Net Sales           $  49,827  $  42,946      $  155,778  $ 129,040
Cost of Sales          36,105     33,562         116,346     99,308
                     --------   --------        --------    -------
Gross profit           13,722      9,384          39,432     29,732

Selling, general
 and administrative
 expenses               9,480     10,618          29,711     31,046
                     --------   --------        --------    -------
Income (loss) from
 operations             4,242     (1,234)          9,721     (1,314)

Interest and
 other income, net          4         44              49         85
Interest expense       (1,096)    (2,028)         (5,835)    (5,860)
                     --------   --------        --------    -------
Income (loss) before
 income taxes           3,150     (3,218)          3,935     (7,089)
Income taxes               75          7             170         43

                     --------  ---------        --------    -------

Net income (loss)      $3,075    ($3,225)         $3,765    ($7,132)
                    =========  =========        ========    =======

Basic earnings
 (loss) per share   $    0.15  $   (0.48)     $     0.33  $   (1.07)
                    =========  =========        ========    =======

Diluted earnings
 (loss) per share   $    0.14  $   (0.48)     $     0.33  $   (1.07)
                    =========  =========        ========    =======

Weighted average
 number of
 common shares
 outstanding (a)   21,074,000  6,687,000      11,371,000  6,687,000
                   ==========  =========     =========== ==========

Weighted average
 number of
 common and common
 equivalent shares
 outstanding (a)   21,389,000  6,687,000      11,371,000  6,687,000
                  =========== ==========     =========== ==========

(a) All share and per share data reflects the 1 for 10 reverse stock
    split which was effected December 9, 1997.
-0-

                      SELECTED BALANCE SHEET DATA
                        (Dollars in thousands)

                                            March 31,     March 31,
                                              1998          1997
                                         ------------  ------------

Cash and cash equivalents                 $    162       $    118
Accounts receivable, net                    36,972         27,627
Inventory                                   16,757         20,299
Working capital (deficiency)                18,525        (24,254)
Total assets                                56,068         50,670
Total liabilities                           49,599         98,399
Stockholders' equity (deficiency)            6,469        (47,729)

CONTACT: Andrew Grossman

Bernard Chaus, Inc.

212/354-1280