Bernard Chaus Reports Strong Third Quarter Results; Diluted EPS for 2003 Nine-Month Period Reaches $0.14 Versus a Loss of $0.15 in Year-Ago Period.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 1, 2003

Bernard Chaus, Inc. (OTC Bulletin Board: CHBD.OB) today reported improved results for its fiscal third quarter and a substantial turnaround in its performance for the 2003 nine-month period.

For the quarter ended March 31, 2003, the Company reported net income of $2.1 million, or $0.07 per diluted share on a weighted average of 30.1 million common shares outstanding, up 19.4% from $1.8 million, or $0.06 per diluted share on a weighted average of 27.9 million common shares outstanding, in the third quarter last year. Revenues for the third quarter of fiscal 2003 were $41.0 million, compared to $43.6 million in the same quarter a year ago. The third quarter includes an initial revenue contribution from the Company's acquisition in December 2002 of certain assets of S.L. Danielle.

For the first nine months of fiscal 2003, net income reached $4.2 million, or $0.14 per diluted share on a weighted average of 29.8 million common shares outstanding, compared to a net loss of $4.2 million, or a loss of $0.15 per diluted share on a weighted average of 27.2 million common shares outstanding, in the nine-month period of fiscal 2002. Revenues for the 2003 nine-month period were $106.7 million, versus $113.0 million in the same period last year.

"Chaus delivered a solid third quarter performance, building on the positive momentum we have achieved this year," said Josephine Chaus, Chairwoman and Chief Executive Officer. "While the retail environment has remained very challenging, we have managed our business carefully and consistently increased profitability versus year-ago results. This progress is clearly evident in the improvement we have seen in gross margin to 25.3% in the quarter and 26.3% in the nine-month period, up from 21.3% and 18.2% in the respective third quarter and nine-month periods in fiscal 2002. Our focus for the fourth quarter is to continue our disciplined approach and deliver a profitable performance for the year."

Nick DiPaolo, Vice Chairman and Chief Operating Officer, added, "Chaus' improved profitability reflects our continued efforts to increase operating efficiencies, lower costs and reduce off-price sales. While this quarter included some expenses related to the integration of S.L. Danielle, we expect this business to provide a platform for future growth through expansion in the moderately priced, private label marketplace. At the same time, we continue to work to optimize performance in our core Josephine Chaus business, by collaborating with our department store customers to assure we have the best and most focused assortment of Josephine Chaus products on the selling floor."

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, 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, the ability to achieve anticipated profit margins and the Company's ability to retain and build upon S.L. Danielle's customer base. 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, 2002.

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

                     For the Quarter Ended   For the Nine Months Ended
                        March 31,   March 31,   March 31,    March 31,
                          2003        2002        2003         2002
                       ----------- ----------- ----------- -----------

Net sales                 $40,983     $43,617    $106,653    $113,039
Cost of goods sold         30,624      34,312      78,635      92,504
                       ----------- ----------- ----------- -----------
Gross profit               10,359       9,305      28,018      20,535

Selling, general and
 administrative
 expenses                   7,795       7,107      22,497      23,139
                       ----------- ----------- ----------- -----------
Income (loss) from
 operations                 2,564       2,198       5,521      (2,604)

Interest expense, net         297         441         937       1,553
                       ----------- ----------- ----------- -----------
Income (loss) before
 income tax provision       2,267       1,757       4,584      (4,157)
Income tax provision          173           3         347           9
                       ----------- ----------- ----------- -----------

Net income (loss)         $ 2,094     $ 1,754     $ 4,237    $ (4,166)
                       =========== =========== =========== ===========

Basic earnings (loss)
 per share                $  0.08     $  0.06     $  0.16    $  (0.15)
                       =========== =========== =========== ===========
Diluted earnings (loss)
 per share                $  0.07     $  0.06     $  0.14    $  (0.15)
                       =========== =========== =========== ===========

Weighted average number
 of common shares
 outstanding - basic   27,322,000  27,216,000  27,265,000  27,216,000
                       =========== =========== =========== ===========

Weighted average number
 of common and common
 equivalent shares
 outstanding - diluted 30,145,000  27,896,000  29,804,000  27,216,000
                       =========== =========== =========== ===========


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

                                             March 31,      March 31,
                                               2003           2002
                                          ------------- --------------

Cash                                           $   166        $   163
Accounts receivable, net                        32,933         36,611
Inventories                                     11,717         11,499
Prepaid expenses and other current assets          722            994
                                          ------------- --------------
      Total current assets                      45,538         49,267

Fixed and other assets, net                      4,666          5,931
Goodwill                                         1,421              -
                                          ------------- --------------
Total assets                                   $51,625        $55,198
                                          ============= ==============

Revolving credit borrowings                    $11,234        $18,567
Accounts payable and accrued expenses           17,283         18,805
Term loan - current                              1,500          1,000
                                          ------------- --------------
  Total current liabilities                     30,017         38,372
Term loan and other long-term liabilities        8,687         10,124
                                          ------------- --------------
  Total liabilities                             38,704         48,496
Total stockholders' equity                      12,921          6,702
                                          ------------- --------------
Total liabilities and stockholders'
 equity                                        $51,625        $55,198
                                          ============= ==============