Candies, Inc. Announces Major Retail Expansion Agreement with Designs, Inc. To Open 75 Outlet Locations Over Next Five Years.

Business Editors

NEW YORK--(BUSINESS WIRE)--October 23, 2001

Candies, Inc. (CAND-NASDAQ) today announced that it has signed an agreement with Designs Inc., granting exclusive rights to open Candies branded outlet locations.

Designs Inc., which owns and operates stores under the Levi's(R)and Dockers(R)names, has committed to opening a minimum of 75 Candie's Outlet stores over a five-year period beginning January 1, 2002. In exchange for these rights, Candie's, Inc. will gain increased control over its distribution channels and an additional showcase for its broad array of footwear, licensed apparel and accessories.

Neil Cole, Chairman and Chief Executive Officer of Candie's, Inc. remarked, "This deal gives us greatly increased flexibility with regard to inventory management. Even more significantly, it will help us leverage our powerful Candie's brand nationally and give our licensees a great opportunity to sell their products in the context of a Candie's branded environment. Finally, the scope and term of this agreement supports our goal of generating sustainable, controlled growth in sales and earnings. Designs, Inc. has proven itself, through its 25 years of operating Levi's branded stores, to be an exceptional organization. We are extremely pleased and excited about the potential this holds for both of our companies."

David A. Levin, President and Chief Executive Officer of Designs, Inc., stated, "The arrangement with Candie's gives Designs a tremendous opportunity to strategically expand Designs' core business of providing quality retail store operating services to brand manufacturers. We are particularly excited about the chance to work with the Candie's organization in expanding their excellent brand, which we believe can fill a meaningful niche in the outlet market."

About Candies, Inc.

Candie's Inc. 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, Inc. also owns and markets footwear, accessories and apparel under the Bongo(R) 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, Inc.. Additionally, the Candie's brand is licensed for the manufacture, sale and distribution of fragrances and cosmetics, handbags, sunglasses, watches, apparel and cell phone accessories. 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.

About Designs, Inc.

Designs, Inc. operates 105 Levi's(R) Outlet by Designs, Dockers(R) Outlet by Designs and Levis's(R)/Dockers(R) Factory Store by Designs stores in the Eastern half of the United States and Puerto Rico under a license agreement with Levi Strauss & Co. selling quality branded apparel and accessories made exclusively by Levi Strauss & Co., and other manufacturers licensed by Levi Strauss & Co. Designs has been operating Levi's branded retail stores for over 25 years and views the opening and operating of branded retail stores in outlet malls and value centers as its core competency. The Company is headquartered in Needham, Massachusetts and its common stock is listed on the Nasdaq National Market under the symbol "DESI". Investor Relations information is available on the Company's web site at www.designsinc.com

Forward Looking Statement Disclosure

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 the 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 2001. Readers are cautioned not to place undue reliance on these forward looking statements.