Candie's, Inc. Issues Statement Regarding Fiscal 1999 Earnings.

PURCHASE, N.Y.--(BUSINESS WIRE)--May 3, 1999--

Candie's, Inc. (Nasdaq NMS symbol: CAND) ("Candie's") today announced that it expects fiscal 1999 net revenues to approximate $115 million, representing an increase of 24% over fiscal 1998 revenues of $93 million. The Company anticipates pre-tax income to approximate $750,000 for the fiscal year ended January 31, 1999. In fiscal 1998, the Company reported pre-tax income of $5,732,985.

The Company also announced that it intends to file for a 15-day extension for its annual report on Form 10-K.

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 Candie's 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 Candie's dependence on foreign manufacturers, uncertainties relating to customer plans and commitments, competition, 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.