Candie's, Inc. Announces Common Stock Repurchase Program.

Business Editors

VALHALLA, N.Y.--(BUSINESS WIRE)--Dec. 22, 2000

Candie's, Inc. (Nasdaq NMS:CAND) ("The Company") today announced that its Board of Directors has approved a new stock repurchase program authorizing the Company to purchase up to $3 million worth of its common stock.

The Company plans to purchase shares from time to time, as the Company deems appropriate, through open market purchases or in privately negotiated transactions.

Mr. Neil Cole, Chief Executive Officer and President of the Company stated, "We are pleased with the new stock buyback authorization and the opportunity it provides for the Company to take advantage of the low level at which the Company's stock is currently trading. This action represents a vote of confidence by our Board in the Company."

Candie's is a leading designer and marketer of young women's footwear, apparel and accessories. The Company distributes its products through better department and specialty stores nationwide, as well as through ten company-owned stores and specialty stores internationally. Candie's also owns and markets footwear, accessories and apparel under the Bongo trademark. Candie's also arranges for the manufacture of footwear products for mass market and discount retailers under the private label brand of the retailer or other trademarks owned or licensed by Candie's. Additionally, the Candie's brand is licensed for the manufacture, sale and distribution of fragrances and cosmetics, handbags, sunglasses, watches and apparel. Candie's Inc. operates www.candies.com, a leading community for teens on the web. For investor information please visit the corporate web site at www.candiesinc.com.

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 all of which are difficult or impossible to predict and many of which are beyond the control of the Company, 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 and market new products particularly in light of rapidly changing fashion trends, the impact of supply and manufacturing constraints or difficulties relating to the Company's dependence on foreign manufacturers, uncertainties relating to customer plans and commitments, competition, uncertainties relating to economic conditions in the markets in which the Company operates, the ability to hire and retain key personnel, the ability to obtain capital, the risks of regulatory proceedings and litigation, the risks of trademark protection, the uncertainty of marketing and licensing acquired trademarks, other risks detailed in the Company's Securities and Exchange Commission filings, and uncertainty associated with the impact on the Company in relation to recent events discussed in the Company's Form 10-K for Fiscal 2000. The words "believe", "expect", "anticipate", "seek" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date the statement was made.