Bernard Chaus Reports Second Quarter Results.

NEW YORK -- Bernard Chaus, Inc. (OTC Bulletin Board: CHBD.OB) today reported its financial results for the second quarter and first six months of fiscal year 2006.

For the second quarter ended December 31, 2005, the Company reported a net loss of $4.9 million, or a loss of $0.13 per diluted share on a weighted average of 37.0 million shares outstanding. This compares to net income in last year's second quarter of $372,000, or $0.01 per diluted share on a weighted average of 30.5 million shares outstanding. Revenues for the second quarter of fiscal 2006 were $23.0 million, compared to $38.6 million in the year-ago second quarter.

For the first six months of fiscal 2006, the Company's net loss was $4.8 million, or a loss of $0.13 per diluted share on a weighted average of 36.5 million shares outstanding, compared to net income of $1.1 million, or $0.04 per diluted share on a weighted average of 30.6 million shares outstanding, in the six-month period of fiscal 2005. Revenues for the first half of fiscal 2006 were $60.7 million, compared to $73.0 million in the same period last year.

Josephine Chaus, Chairwoman and Chief Executive Officer, said, "We faced challenges in the second quarter as sales in our principal product lines were adversely affected by the difficult retail environment and by a shift in timing of certain shipments from the second to the third quarter. In addition, we incurred start-up costs related to the upcoming launch of our new Kenneth Cole Reaction women's line this spring. We anticipate improved performance in the second half of our fiscal year."

Bernard Chaus, Inc., designs, sources and markets an extensive range of women's career and casual sportswear, principally under the Josephine Chaus, Chaus, Cynthia Steffe and Cynthia Cynthia Steffe trademarks, as well as private label. The Company's products are sold nationwide through department store chains, specialty retailers and other outlets. In June 2005, the Company entered into a license agreement with Kenneth Cole Productions, Inc. for the manufacture and sale of a new women's sportswear line under the Kenneth Cole Reaction label.

This press release contains forward-looking statements that are based upon current expectations and involve a number of uncertainties including retail market conditions, success of new initiatives, the Company's ability to effectively execute its business plan, consumer acceptance of the Company's products, including the new Kenneth Cole Reaction label, and the ability to achieve anticipated profit margins. 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, 2005.

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


                  For the Three Months Ended For the Six Months Ended
                  December 31,  December 31, December 31, December 31,
                     2005          2004         2005         2004
                  ------------- ------------ ------------ ------------

Net revenue        $    23,002  $    38,569  $    60,720  $    73,003
Cost of goods sold      18,228       27,931       45,362       52,170
                  ------------- ------------ ------------ ------------
Gross profit             4,774       10,638       15,358       20,833

Selling, general
 and administrative
 expenses                9,405        9,889       19,634       18,986
                  ------------- ------------ ------------ ------------
Income (loss) from
 operations             (4,631)         749       (4,276)       1,847

Interest expense,
 net                       194          341          424          646
                  ------------- ------------ ------------ ------------
Income (loss)
 before for income
 taxes provision        (4,825)         408       (4,700)       1,201

Income tax
 provision                  46           36           75          108
                  ------------- ------------ ------------ ------------
Net income (loss)  $    (4,871) $       372  $    (4,775) $     1,093
                  ============= ============ ============ ============

Basic earnings
 (loss) per share  $     (0.13) $      0.01  $     (0.13) $      0.04
                  ============= ============ ============ ============
Diluted earnings
 (loss) per share  $     (0.13) $      0.01  $     (0.13) $      0.04
                  ============= ============ ============ ============
Weighted average
 number of shares
 outstanding -
 basic              37,025,000   28,065,000   36,513,000   27,999,000
                  ============= ============ ============ ============
Weighted average
 number of shares
 outstanding -
 diluted            37,025,000   30,500,000   36,513,000   30,591,000
                  ============= ============ ============ ============


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

                                             December 31, December 31,
                                                2005         2004
                                             ------------ ------------

Cash and cash equivalents                     $    3,626   $      114
Accounts receivable, net                          14,900       28,686
Inventories                                       10,932        8,349
Prepaid expenses and other current assets            641          973
                                             ------------ ------------
 Total current assets                             30,099       38,122
Fixed and other assets, net                        3,639        4,121
Goodwill and trademarks                            3,257        3,257
                                             ------------ ------------
Total assets                                  $   36,995   $   45,500
                                             ============ ============

Revolving credit borrowings                   $        -   $    6,857
Accounts payable and accrued expenses             11,802       11,750
Term loan - current                                1,700        1,700
                                             ------------ ------------
 Total current liabilities                        13,502       20,307
Term loan and other long-term liabilities          5,882        7,334
                                             ------------ ------------
 Total liabilities                                19,384       27,641
Total stockholders' equity                        17,611       17,859
                                             ------------ ------------
Total liabilities and stockholders' equity    $   36,995   $   45,500
                                             ============ ============