Candie's, Inc. Announces Change in Accountants.

PURCHASE, N.Y.--(BUSINESS WIRE)--June 25, 1999--

Candie's, Inc. (Nasdaq/NMS:CANDE) ("the Company") today announced that it dismissed Ernst & Young LLP ("E&Y") as its independent auditors and has engaged BDO Seidman, LLP ("BDO"). The decision to change auditors was approved by the company's board of directors and the Audit Committee of the company's board of directors.

Commenting on these issues, Neil Cole, the company's chief executive officer, stated, "We look forward to developing a strong working relationship with BDO and the prompt completion of our audit."

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995. The statements which are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, uncertainty regarding continued market acceptance of current products and the ability to successfully develop and market new products particularly in light of rapidly changing fashion trends, the impact of supply and manufacturing constraints or difficulties particularly in light of the Company's dependence on foreign manufacturers, uncertainties relating to customer plans and commitments, competition, uncertainty regarding the ability of the Company and critical third parties with which it conducts business to achieve year 2000 compliance, uncertainties relating to economic conditions in the markets in which Candie's operates, the ability to hire and retain key personnel, the ability to obtain additional capital if required, the risks of uncertainty of trademark protection and other risks detailed in Candie's Securities and Exchange Commission filings.