Candie's, Inc. Continues with Expansion Plans for BONGO With the Announcement of Two New License Agreements; The Brand Has Partnered With Catton Apparel Group and Accessory Exchange.

NEW YORK -- Candie's, Inc. (NASDAQ: CAND) announced today that it has signed two new license agreements under the BONGO(R) label. The first agreement is for junior handbags and small leather goods with Accessory Exchange and the second agreement with Catton Apparel Group for girls' outerwear.

Under the terms of the respective agreements, Accessory Exchange will ship product for Spring 2005 and Catton Apparel Group will launch girls' outerwear in Fall 2005. BONGO handbags and girls' outerwear will be distributed at department and specialty stores nationwide.

Neil Cole, CEO, Candie's, Inc. stated, "Accessory Exchange and Catton Apparel Group are recognized as leaders in the junior handbag and girls' outerwear categories, respectively, we are excited to be partnering with each of them in their area of expertise to expand our BONGO licensing portfolio."

"We are thrilled to have acquired the license for BONGO handbags and small leather goods," stated, Abe Dweck, President of Accessory Exchange. "BONGO is one of the fastest growing fashion brands today and is known for its young, stylish and affordable fashions. BONGO handbags will be a great complement to our existing business."

Sammy Catton, CEO, Catton Apparel Group stated, "BONGO is one of the most sought after brands in the junior market and BONGO kids is quickly gaining recognition as one of the top girls' brands in department stores. We are excited to be launching BONGO girls' outerwear this Fall and look forward to working with the BONGO team."

Accessory Exchange, a leading manufacturer of junior handbags and accessories including XOXO, Via Spiga and Whatever, is replacing Innovo Group as the BONGO licensee for such products. Catton Apparel Group holds various lifestyle brand and character licenses, including Gasoline, OTB and Bass Creek Outfitters. Character licenses include various Disney and Warner Bros. properties, Care Bears, Trollz and others.

Candie's, Inc. is in the business of licensing the CANDIE'S and BONGO trademarks on a variety of young women's footwear, apparel and fashion products, and is a leading designer, distributor and marketer of jeanswear under the BONGO brand through its wholly owned subsidiary, Unzipped Apparel, LLC. Through its wholly owned subsidiary Brightstar Footwear, Inc., the Company also arranges for the manufacture of footwear products for mass market and discount retailers under the private label brand of the retailer. For investor information please visit the corporate web site at http://www.candiesinc.com.