Calvin Klein Reaches Agreement In Principle For Strategic Partnership With Vestimenta On Designer Collection Businesses.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 27, 2003

Calvin Klein, Inc. today announced that it has reached an agreement in principle with Vestimenta, S.p.A for the manufacture and distribution of Calvin Klein women's and men's designer collection apparel on a worldwide basis.

The strategic partnership would combine Calvin Klein's design and marketing expertise with the resources of one of the world's leading manufacturers and distributors of women's and men's designer apparel. Definitive agreements are expected to be entered into by mid-March.

The two companies intend to enter into a long-term global strategic partnership that would begin on January 1, 2004. Before that, beginning with the Fall 2003 season, Vestimenta would manufacture designer collection apparel - leading to the strategic partnership that would take effect at the beginning of 2004.

Under the terms of the arrangement, Calvin Klein, Inc. would transfer the operations of its men's and women's designer collection apparel businesses to Vestimenta, while retaining all responsibilities for design, marketing, advertising and public relations, as well as control over distribution. Design of the apparel collections would be retained by Calvin Klein, Inc. as well as management of the strategic partnership with Vestimenta, which would be overseen by Tom Murry, President and Chief Operating Officer of Calvin Klein, Inc.

"This strategic partnership -- with Vestimenta's diversified structure and consistent ability to produce the finest in both soft and tailored clothing that Italy offers -- will help us achieve our global strategy," said Calvin Klein.

"Vestimenta has impressed us as an excellent partner for substantially growing our women's and men's designer collection businesses in our select channels of distribution worldwide," said Tom Murry. "Their excellence in manufacturing quality and distribution is second to none -- and we know that they are the right partner to help us take our collection businesses to the next level in terms of sales and growth."

"This partnership with Calvin Klein has great strategic importance for us," said Giovanni Bassetti, Chairman, Vestimenta, and Roberto Zanetto, Chief Executive Officer, Vestimenta. "We consider it to be a great opportunity, based on the excellent values and prestige of the brand. Calvin Klein is known as a symbol of modernity, quality, purity and innovation -- and Vestimenta shares those values and considers them to be of the utmost importance in developing a strong designer ready-to-wear collection. The new partnership is the result of shared ideas and philosophy with the management at Calvin Klein -- and we look forward to a great future."

Calvin Klein is a wholly owned subsidiary of Phillips-Van Heusen Corporation and 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 worldwide. Brands/lifestyles include Calvin Klein Collection, cK Calvin Klein and cK Calvin Klein Jeans. Product lines include apparel, accessories, shoes, underwear, sleepwear, hosiery, socks, swimwear, eyewear, watches, coats, and fragrances, as well as products for the home. Phillips-Van Heusen Corporation (NYSE: PVH) is the largest shirt company in the world and one of the leading apparel and footwear companies. It markets and distributes products under its owned marks Calvin Klein, Van Heusen, IZOD and G.H. Bass, and its licensed marks Geoffrey Beene, Arrow, DKNY, Kenneth Cole New York and Reaction by Kenneth Cole.

Vestimenta, S.p.A. was founded in 1962 in Trento, Italy. It produces top-quality men's and women's apparel, in accordance with its global strategy. The decision to operate both in-house and licensed brands is a cornerstone of Vestimenta's strategy. Vestimenta has a strong international presence with the brand HILTON in Italy, Europe and Japan. Distribution in the United States and Canada is under the VESTIMENTA label, which is managed by the company's subsidiary in New York. Vestimenta also produces the Emanuel Ungaro women's collection, controls 50-percent of menswear label Piombo and in January 2003 signed a license agreement with Trussardi for a men's collection. After a long-time production license, Giorgio Armani recently formed a joint venture with Vestimenta to produce its men's and women's Borgonuovo line. Vestimenta is headquartered in Trento, with manufacturing operations around Italy, and commercial offices and showrooms in Milan.

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 the Company's 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 and footwear products, both to its wholesale customers and in its retail stores, and the extent of discounts and promotional pricing in which the Company is required to engage, all of which can be affected by weather conditions, changes in the economy, fuel prices, reductions in travel, fashion trends 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; (iv) the Company's operations and results could be affected by quota restrictions (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 or war and political and labor instability in the countries where the Company's products are or are planned to be produced; and (v) acquisitions and issues arising with acquisitions and proposed transactions, including without the 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 and (vi) 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.