CYGNE DESIGNS, INC. ANNOUNCES FOURTH QUARTER AND YEAR-END SALES AND EARNINGS RESULTS.

NEW YORK--March 23, 1995--(BUSINESS WIRE)--Cygne Designs, Inc. (Nasdaq:CYDS) today announced net sales and earnings for the fourth quarter and fiscal year ended January 28, 1995.

Net sales for the fourth quarter increased 153% to $157.4 million from $62.3 million for the comparable prior year period. Of the $95.1 million increase in net sales, $34.7 million was generated from Fenn, Wright and Manson, Incorporated, which was acquired by Cygne Designs on April 6, 1994, and $33.2 million was generated from G.J.M., which was acquired on October 7, 1994. The balance of the increase in net sales of $27.2 million represents an increase of 44% over the same period last year. Net income for the fourth quarter increased 86% to $4.6 million from $2.5 million earned during the same period last year. The fourth quarter results include goodwill amortization of $1.1 million, or $0.08 per share. On a per share basis, net income for the fourth quarter was $0.35 as compared to $0.30 for the comparable prior year period. The weighted average number of shares outstanding increased to 13,210,000 from 8,281,000.

Net sales for the fiscal year ended January 28, 1995 increased 134% to $516.1 million from $220.2 million for the prior year. Of the $295.9 million increase in net sales, $119.5 million was generated from Fenn Wright and $42.4 million was generated from G.J.M. The balance of the increase in net sales of $134.0 million represents a 61% increase over the prior year. Net income for the fiscal year ended January 28, 1995 increased 76% to $10.8 million from $6.1 million last year. The fiscal year results include goodwill amortization of $2.5 million, or $0.21 per share. On a per share basis, net income for the year ended January 28, 1995 was $0.93, as compared to $0.92 for the prior year. The weighted average number of shares outstanding increased to 11,658,000 from 6,705,000.

Combined pro forma net sales of Cygne Designs, Fenn Wright and G.J.M. for the year ended January 28, 1995 increased 25% to $592.7 million from $475.3 million for the comparable prior year. Combined pro forma net income for the year ended January 28, 1995 was $9.4 million, or $0.75 per share, compared to $10.1 million, or $1.08 per share, for the comparable prior period. The pro forma weighted average number of shares outstanding increased to 12,470,000 from 9,355,000.

Historically, the Company has achieved its highest net sales and earnings in the third and fourth quarters. The recent acquisitions of Fenn Wright and G.J.M. have further accentuated this seasonality, as reflected in the 1994 quarterly pro forma table provided herewith. Bernard Manuel, Chairman and Chief Executive Officer, stated, "Our two acquisitions have increased the seasonality of our business significantly, but they have also served to extend our product range as well as to broaden our customer base. This product and market diversification further consolidates our leadership position in the private brand segment of the apparel industry. Therefore, and despite the current soft retail environment which we expect t continue into the first half of 1995, we feel that Cygne Designs is uniquely positioned to take advantage of growth opportunities, particularly with new customers."

Cygne Designs, Inc. is a leading private label designer, merchandiser and manufacturer of women's and men's apparel, serving several prominent specialty retail store chains including AnnTaylor, The Limited Stores, Express, Lane Bryant, Victoria's Secret Stores, Lerner and Casual Corner. The Company's products include a broad range of woven and knit career, casual and intimate women's apparel, as well as men's casual sportswear. -0-

                   CYGNE DESIGNS, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Income
              (Unaudited, in Thousands, except per share data)

                       Three Months Ended          Fiscal Year Ended
                     January 28,  January 29,   January 28,  January 29,
                         1995       1994          1995           1994

Net sales            $157,416     $ 62,341      $516,105      $220,201
Cost of goods sold    130,059       50,733       433,700       181,326
Gross profit           27,357       11,608        82,405        38,875
Selling, general
 and administrative
 expenses              16,532        6,436        54,261        23,794
Amortization of
 goodwill               1,100           90         2,505           137
Income from operations  9,725        5,082        25,639        14,944
Interest expense        2,712          898         7,620         4,272
Income before provision
 for income taxes and
 minority interests     7,013        4,184        18,019        10,672
Provision for income
 taxes                  2,107        1,560         5,568         3,897
Income before minority
 interests              4,906        2,624        12,451         6,775
Income attributable to
 minority interests       290          144         1,642           631
Net income           $  4,616     $  2,480      $ 10,809      $  6,144
Net income per share $   0.35     $   0.30      $   0.93      $   0.92
Weighted average number
 of common and common
 equivalent shares
 outstanding           13,210        8,281        11,658         6,705

                        CYGNE DESIGNS, INC. AND SUBSIDIARIES
                Pro Forma Condensed Combined Statements of Income
                (Unaudited, in Thousands, except per share data)

                          Three Months Ended      Fiscal Year Ended
                       January 28, January 29,  January 28,  January 29,
                         1995         1994         1995        1994

Net sales            $  157,416   $ 145,125    $ 592,676   $ 475,299
Cost of goods sold      130,059     120,901      500,812     396,154
Gross profit             27,357      24,224       91,864      79,145
Selling, general
  and administrative
  expenses               16,532      13,368       63,347      51,647
Amortization of
  goodwill                1,100         857        3,554       3,079
Income from operations    9,725       9,999       24,963      24,419
Interest expense          2,712       1,578        9,068       7,182
Other income                ---         412          660         716
Income before provision
 for income taxes and
 minority interests       7,013       8,833       16,555      17,953
Provision for income
  taxes                   2,107       3,553        5,510       7,259
Income before minority
  interests               4,906       5,280       11,045      10,694
Income attributable to
  minority interests        290         139        1,642         626
Net income             $  4,616    $  5,141     $  9,403    $ 10,068
Net income per share   $   0.35   $    0.47     $   0.75    $   1.08
Weighted average number
  of common and common
  equivalent shares
  outstanding            13,210      10,931       12,470       9,355

    The pro forma information does not purport to be indicative of the
results that actually would have occurred had the Fenn Wright and
G.J.M.  acquisitions been effected on the dates indicated, nor do
they project the Company's results for any future dates or periods.

                   CYGNE DESIGNS, INC. AND SUBSIDIARIES
             Pro Forma Condensed Combined Statements of Income
             (Unaudited, in Thousands, except per share data)

                                       Three Months Ended
                      April 30,      July 30,     October 29,   January 28,
                        1994           1994         1994           1995

Net sales              $117,156    $140,397    $177,707       $157,416
Gross profit             18,232      21,618      24,657         27,357
Income from operations    2,676       5,218       7,344          9,725
Net income               $  229     $ 1,563    $  2,995        $ 4,616
Net income per share     $ 0.02     $  0.13    $   0.22        $  0.35
Number of shares
 used in computation
 of net income per
 share                   10,948      12,357      13,367         13,210

    The pro forma information does not purport to be indicative of the
results that actually would have occurred had the Fenn Wright and
G.J.M.  acquisitions been effected on the dates indicated, nor do
they project the Company's results of operations for any future dates
or periods.

CONTACT: Roy E. Green

Chief Financial Officer

[phone]

or

David Walke, Amy Weisman,

Laura Plevyak

Press: Stacy Berns

Morgen-Walke Associates

212/850-5600