Bernard Chaus Reports Second Quarter Fiscal 2001 Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 31, 2001

Bernard Chaus, Inc. (OTC Bulletin Board: CHBD) today announced its financial results for the second quarter of fiscal 2001, the period ended December 31, 2000.

For the fiscal 2001 second quarter and six-month period, the Company reported a net loss of $3.7 million, or $0.14 per share, and a net loss of $4.6 million, or $0.17 per share, respectively. Revenues for the second quarter of fiscal 2001 were $30.2 million, and $70.9 million for the six-month period.

For the fiscal 2000 second quarter and six-month period, the Company reported net income of $631,000, or $0.02 per share, and $4.9 million, or $0.18 per share, respectively. Revenues for the second quarter of fiscal 2000 were $43.5 million, and $96.7 million in the six-month period.

Josephine Chaus, Chairwoman and Chief Executive Officer, commented, "Our performance in the first half of fiscal 2001 reflects the difficult apparel and retail marketplace and continued pressure on our gross margins, stemming from the highly promotional conditions prevailing in the industry. In order to best position our Company within this environment, we are carefully monitoring the results of the sales and merchandising initiatives we recently began implementing to ensure the most prudent usage of our resources."

Nicholas DiPaolo, Vice Chairman and Chief Operating Officer, added, "As part of this effort, we are working in close coordination with our department store customers to best manage our business in their stores and to explore opportunities to expand the distribution of our lines as we look ahead. At the same time, we are focusing on identifying areas in which we can reduce expenses. We expect these actions to result in a substantial improvement in the financial performance of our Company in the second half of fiscal 2001 compared with the fiscal 2000 second half, and to lay the groundwork for Chaus' long-term growth."

Bernard Chaus, Inc., designs, sources and markets an extensive range of women's career and casual sportswear, principally under the Josephine Chaus Collection, Josephine Chaus Studio, Josephine Chaus Essentials and Josephine Chaus Sport trademarks. The Company's products are sold nationwide through department store chains, specialty retailers and other outlets. Further information can be found at www.BernardChaus.com.

This press release contains forward-looking statements that are based upon current expectations and involve a number of uncertainties, including retail market conditions, consumer acceptance of the Company's products and the ability to implement expected expense savings. 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, 2000.

                  BERNARD CHAUS, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
             (Dollars in thousands, except number of shares
                          and per share amounts)
                             (Unaudited)

                    For the Quarter Ended     For the Six Months Ended
                         December 31,               December 31,
                     2000           1999        2000            1999



Net Sales        $  30,213      $   43,482      $70,890     $  96,694
Cost of goods
 sold               25,191          34,376       57,937        73,325
Gross profit         5,022           9,106       12,953        23,369

Selling, general
 and administrative
 expenses            8,085           7,883       16,388        17,178
Income (loss) from
 operations         (3,063)          1,223       (3,435)        6,191

Interest expense,
 net                   620             579        1,182         1,144
Income (loss)
 before provision
 for income taxes   (3,683)            644       (4,617)        5,047
Provision for income
 taxes                   3              13            5           101
Net income (loss) $ (3,686)        $   631     $ (4,622)   $    4,946
Basic and diluted
 earnings (loss)
 per share        $  (0.14)        $  0.02     $  (0.17)   $     0.18
Weighted average
 number of
 Common shares
 outstanding
 - basic            27,216,000   27,150,000   27,216,000   27,133,000

Weighted average
 number of
 Common and common
 Equivalent shares
 outstanding
 - diluted          27,216,000   27,251,000   27,216,000   27,295,000



                          BERNARD CHAUS, INC. AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEET DATA
                                 (Dollars in thousands)
                                       (Unaudited)

                                      December 31,        December 31,
                                        2000                 1999


Cash and cash equivalents          $    3,949            $  4,607
Accounts receivable, net               18,053              29,855
Inventories                            14,053              18,488
Prepaid expenses                          482                 853

 Total current assets                  36,537              53,803
Fixed and other assets, net             6,627               1,963
Total assets                       $   43,164            $ 55,766


Accounts payable and
 accrued expenses                  $   17,484            $ 19,925
Term loan - current                     1,000               1,000
 Total current liabilities             18,484              20,925
Term loan                              11,000              12,000
 Total liabilities                     29,484              32,925
Total stockholders' equity             13,680              22,841
Total liabilities and
 stockholders' equity              $   43,164            $ 55,766