Candie's, Inc. Appoints Richard G. Danderline as Executive Vice President Finance and Operations.

Business Editors

VALHALLA, N.Y.--(BUSINESS WIRE)--July 10, 2000

Candie's, Inc. (Nasdaq:CAND) ("Candie's") today announced that it has appointed Richard G. Danderline as Executive Vice President Finance and Operations.

Jack Needham will remain as Vice President Finance.

Mr. Danderline has developed a strong background in finance and operations during his extensive career that spans over 20 years. Most recently, he served as Vice President, Treasurer, and Chief Financial Officer of AeroGroup International, Inc ("Aerosoles"). During his 13-year tenure at Aerosoles, Mr. Danderline was responsible for finance and operations, as the Company grew in sales from $7 million to $150 million. Prior to Aerosoles, he served as Vice President and Chief Financial Officer of Kenneth Cole Productions, Inc. He was part of a management-led leveraged buyout of the What's What division of Kenneth Cole, which later became AeroGroup International, Inc.

Mr. Danderline's experience also includes serving as Vice President and Controller of Energy Assets International, Inc. and serving as Vice President and Controller of XOIL Energy Resources, Inc. Mr. Danderline is a Certified Public Accountant and began his career with the accounting firm of Touche Ross & Co, predecessor of Deloitte & Touche.

Commenting on the announcement, Neil Cole, Chairman and Chief Executive Officer stated, "I am pleased to announce the addition of Richard as Executive Vice President of Finance and Operations. Richard brings to Candie's his superior knowledge of the finance and operational aspects of the footwear business. He has experienced both periods of strength and weakness within the footwear industry and is expected to add a tremendous amount of insight to our Company as we execute our growth strategies."

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 seven company-owned stores and specialty stores internationally. Candie's Inc. 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 to Liz Claiborne Inc. for the manufacture, sale and distribution of fragrances and cosmetics and to Trebbianno for the manufacture, sale and distribution of handbags and small leathergoods. 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 develop 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.