Calvin Klein, Inc. Signs Letter of Intent With GFT S.p.A. to Launch Menswear Collection in Europe Beginning Spring 1999.

MILAN--(BUSINESS WIRE)--June 30, 1998--Calvin Klein, Inc. and GFT, S.p.A., a company within the HdP Group, today announced that they have signed a letter of intent to extend their partnership in menswear for the Calvin Klein label, through a long-term international licensing agreement covering Europe, the Middle East and the Asia/Pacific region (excluding Japan). Working together since 1992, the two companies have built a highly successful menswear business in the United States and now plan to extend it to other major regions of the world. A launch would begin with Europe in Spring 1999, to be supported by advertising and public relations campaigns, including targeted in-store events.

The letter of intent precedes an agreement that will cover a complete lifestyle collection to be designed and sold under the Calvin Klein label, including suits, sport jackets, pants, overcoats, dress shirts and neck wear. Distribution will be highly selective, limited to high-end specialty retailers, department stores, and through freestanding Calvin Klein Collection stores.

"We're inspired in our design by sophisticated, modern men living in major international cities," said Calvin Klein. "Increasingly, I find that men are responding to our casually elegant approach, and I'm enthusiastic about the prospects for taking that point of view around the world."

"GFT USA has been an excellent partner for us in menswear, bringing quality in manufacturing and expertise in distribution," said Gabriella Forte, President and Chief Operating Officer, Calvin Klein, Inc. "It has always been our intent to expand menswear internationally, and we are pleased to sign the letter of intent as a final step toward expanding our long-term license to Gruppo GFT Europe."

"The prospect for us to expand our relationship with Calvin Klein is an important strategic move in the continuing growth of GFT's business in Europe," said Angelo Barozzi, Chief Executive Officer, Gruppo GFT. "Calvin Klein brings a unique perspective to menswear with his relaxed, American point of view in design. It's an aesthetic that's already in demand worldwide."

Under the letter of intent, Calvin Klein, Inc. plans to license the use of its Calvin Klein trademark to Gruppo GFT Europe, which will be responsible for sales, manufacturing and distribution through its existing networks. Design, advertising and public relations, will be the sole responsibility of Calvin Klein, Inc., administered through its studios and offices in Milan, New York and Hong Kong.

The expanded GFT relationship will complement Calvin Klein, Inc.'s existing international retail and wholesale clothing licenses, including those with Stefanel S.p.A. for cK Calvin Klein apparel in Europe and the Middle East and The Fratini Group for cK Calvin Klein Jeanswear in Europe, the Middle East and Asia.

Calvin Klein, Inc. is one of the leading fashion and design companies in the world today. The company's product lines include three distinct lifestyle categories: the Calvin Klein Collection for women and men, cK Calvin Klein for women and men, and cK Calvin Klein Jeans for women, men and kids. A diverse range of products is designed under these lifestyle categories, including apparel, accessories, shoes, underwear, sleepwear, hosiery, socks, swimwear, eyewear, watches, coats, and fragrance, as well as products for the home.

Gruppo GFT is wholly owned by HdP and is one of the leading conglomerates operating on a global scale in the apparel industry. GFT S.p.A., from its headquarters in Turin, Italy, conducts its activities through 27 operating companies in 16 countries. The menswear production capability is supported by eight wholly-owned plants in Europe, the United States and China. Gruppo GFT's product portfolio is focused on the middle-to-upper tiers of the market and includes own-brand labels, as well as designer apparel resulting from collaborative agreements with leading international designers.

    CONTACT:  Robert Triefus
               Senior Vice President of Communications, Worldwide
               Calvin Klein, Inc.
               Tel  [phone]
               Fax  [phone]
                       or
               Noris Morano
               Gruppo GFT
               Communications and Press Office
               Tel  [phone]
               Fax  [phone]