Calvin Klein, Inc. Announces the Opening of 'Calvin Klein' Branded Freestanding Retail Stores in U.S.

First Five Lifestyle Concept Locations to Open in November 2007; Five Additional Locations to Open by End of 2008

NEW YORK -- Calvin Klein, Inc., a wholly owned subsidiary of Phillips-Van Heusen Corporation (NYSE: PVH), today announced details on the planned launch of five freestanding Calvin Klein-branded better specialty retail stores in the United States featuring apparel and accessories under the Calvin Klein white label.

The introduction of full-price Calvin Klein white label specialty retail stores is based upon the continued and dramatic growth at retail of both the women's and men's better sportswear lines sold under the Calvin Klein white label since their launch in Spring 2004 and Fall 2004, respectively, and the subsequent successful introductions of other key categories and accessories with the company's licensing partners. Today, just three years after the debut of the first women's sportswear line, the Calvin Klein white label offerings, including the core sportswear lines, as well as jeanswear, fragrance, and underwear, represent over $3 billion in global retail sales volume.

As previously announced, the company plans to open five freestanding Calvin Klein specialty retail locations in November 2007 to showcase the full range of the Calvin Klein men's and women's better apparel and accessories offering. These stores will serve to further extend the brand while offering the Calvin Klein consumer an opportunity to experience the unique white label lifestyle environment first-hand.

"These freestanding stores are a very important step for the Calvin Klein white label brand, as they provide an experiential platform to showcase the brand's lifestyle. The store's aesthetic and product assortments will be aspirational, and instrumental in our continuous effort to maintain the brand's image while elevating the brand's profile," said Tom Murry, President & Chief Operating Officer, Calvin Klein, Inc.

The first stores for which leases have been signed are in The Beverly Center in Los Angeles, California; Cherry Creek in Denver, Colorado; The Mall At Partridge Creek in Bloomfield Hills, Michigan (all developed by The Taubman Company); Natick Collection in Natick, Massachusetts (developed by General Growth Properties); and Lenox Square in Atlanta, Georgia (developed by Simon Property Group). Cushman & Wakefield is acting as the company's exclusive agent for the full-price Calvin Klein specialty retail store initiative.

Each concept store will average approximately 10,000 square feet and will bring together merchandise from virtually all categories presently available today under the Calvin Klein white label line of men's and women's better apparel and accessories. Planned assortments will include men's and women's sportswear, suit separates, jeanswear, underwear, outerwear, footwear, eyewear, watches, and fragrance; men's tailored clothing, shirting, belts and ties; and women's dresses, and accessories.

Based upon the success of these stores and dependent upon opportunity and availability within key markets, the company intends to add five freestanding stores by the end of 2008. Potential markets under consideration for additional stores include metro New York, Boston, Las Vegas, San Francisco, San Diego, Miami, Orlando, Dallas, Houston, Chicago, and Scottsdale, as well as other major metropolitan markets.

These stores were designed by Lynch Eisinger Design, working with Calvin Klein, Inc.'s in-house retail design and planning team with project management services provided by Watershed Partners Inc. The unique spaces are multi-dimensional and incorporate natural materials with rich, tactile finishes throughout.

The Calvin Klein better specialty retail division is located within Calvin Klein, Inc.'s headquarters in New York City. The division is headed by John Walsh who has served as the President & COO of Calvin Klein, Inc.'s retail division since 2003. A dedicated staff has been added to support this initiative, including recent additions to the merchandising, design, sourcing, planning and allocation, visual merchandising and field management teams.

Said John Walsh, President & Chief Operating Officer, Calvin Klein Retail, "We are very excited about the launch of our first specialty retail stores in the U.S. market. This initial test phase will allow us the opportunity to refine our product offerings and develop market-specific merchandising strategies that appeal to the specialty retail client base. Our in-house design team, led by Jacquie Wolfson, Creative Director - Calvin Klein Retail, and our merchandising team led by General Manager Jyothi Rao have developed a very compelling offering for the launch. Their work in conjunction with that of our very talented licensed partners will allow us to deliver a true lifestyle experience in a store environment that truly represents the Calvin Klein white label brand positioning."

"We are pleased to have had the opportunity to continue our relationship with Calvin Klein and assist them in the implementation of this exciting new retail concept," said Alan Napack, Senior Director, Cushman & Wakefield Retail Services. "The uniqueness of these new stores has prompted an extraordinary response from the retail development community, enabling Calvin Klein to secure five high-profile locations in key retail markets. We will continue to pursue these types of sites as Calvin Klein expands the presence of its new concept across the United States."

Calvin Klein, Inc. is one of the leading fashion design and marketing studios in the world. It designs and markets women's and men's designer collection apparel and a range of other products that are manufactured and marketed through an extensive network of licensing agreements and other arrangements worldwide. Brands/lifestyles include Calvin Klein Collection, ck Calvin Klein, Calvin Klein, Calvin Klein Jeans and Calvin Klein Underwear. Product lines under the various Calvin Klein brands include apparel, accessories, shoes, sleepwear, hosiery, socks, swimwear, belts, eyewear, watches, jewelry, coats, suits and fragrances, as well as products for the home.

Phillips-Van Heusen Corporation is one of the world's largest apparel companies. It owns and markets the Calvin Klein brand worldwide. It is the world's largest shirt and neckwear company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, IZOD, ARROW, Bass and G.H. Bass & Co., and its licensed brands, including Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, unlisted, A Kenneth Cole Production, BCBG Max Azria, BCBG Attitude, MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection, JOE Joseph Abboud, Tommy Hilfiger, and Perry Ellis Portfolio.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements in this press release, including, without limitation, statements relating to Phillips-Van Heusen Corporation's future revenues and earnings, plans, strategies, objectives, expectations and intentions, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, the following: (i) the Company's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the levels of sales of the Company's apparel, footwear and related products, both to its wholesale customers and in its retail stores, the levels of sales of the Company's licensees at wholesale and retail, and the extent of discounts and promotional pricing in which the Company and its licensees and other business partners are required to engage, all of which can be affected by weather conditions, changes in the economy, fuel prices, reductions in travel, fashion trends, consolidations, repositionings and bankruptcies in the retail industries, repositionings of brands by the Company's licensors and other factors; (iii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth and inventory, including the Company's ability to continue to realize revenue growth from developing and growing Calvin Klein; (iv) the Company's operations and results could be affected by quota restrictions and the imposition of safeguard controls (which, among other things, could limit the Company's ability to produce products in cost-effective countries that have the labor and technical expertise needed), the availability and cost of raw materials (particularly petroleum-based synthetic fabrics, which are currently in high demand), the Company's ability to adjust timely to changes in trade regulations and the migration and development of manufacturers (which can affect where the Company's products can best be produced), and civil conflict, war or terrorist acts, the threat of any of the foregoing, or political and labor instability in the United States or any of the countries where the Company's products are or are planned to be produced; (v) disease epidemics and health related concerns, which could result in closed factories, reduced workforces, scarcity of raw materials and scrutiny or embargoing of goods produced in infected areas; (vi) acquisitions and issues arising with acquisitions and proposed transactions, including without limitation, the ability to integrate an acquired entity into the Company with no substantial adverse affect on the acquired entity's or the Company's existing operations, employee relationships, vendor relationships, customer relationships or financial performance; (vii) the failure of the Company's licensees to market successfully licensed products or to preserve the value of the Company's brands, or their misuse of the Company's brands and (viii) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.

The Company does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events or otherwise.