Class Action Suit Filed Against Fruit of the Loom Inc. and Its Officers and Directors Alleging Misrepresentations, False Financial Statements and Insider Trading.

SAN DIEGO--(BUSINESS WIRE)--July 23, 1998--A class action has been commenced in the United States District Court for the Western District of Kentucky on behalf of purchasers of Fruit of the Loom Inc., ("Fruit") (NASDAQ:FTL) common stock during the period July 24, 1996 to September 5, 1997.

The complaint charges Fruit and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that in 1996, Fruit reported increasing gross margins and strong EPS and cash flow growth, especially during Fruit's 2ndQ, 3rdQ and 4thQ of 96. As a result of Fruit's 1996 performance, which was coupled with forecasts of even stronger EPS growth and cash flow in 1997 and 1998, Fruit's stock was a very strong performer, moving up to $38 by year-end 96 and on to a Class Period high of $44-7/8 per share in March 1997. During the 7/24/96-9/5/97 Class Period, the complaint alleges that defendants told investors Fruit was enjoying strong demand for most of its products, had accelerated the move of its sewing operations offshore, achieving a five-year program in just two and one-half years, which was "yielding concrete and positive results," i.e., providing operating efficiencies and reducing costs which would boost Fruit's gross margins in 97, 98 and 99.

However, Fruit's apparent return to prosperity, higher gross margins, large "free" cash flow and strong EPS was quite short-lived. In July 1997 Fruit revealed very disappointing 2ndQ 97 results, well below forecasted levels and that it expected poor results for the balance of 1997. Fruit then reported astonishingly large losses, in excess of $530 million (over $7 per share), in the 3rdQ and 4thQ of 97, negative cash flow for 97 and increased debt levels for 97, due to poor sales of its T-shirt products and the failure of Gitano brand to reach profitability, operating inefficiencies and increased costs, including problems with its new VMI system, and an inability to produce profitable goods in high demand because of chaos in its new Mexican and Caribbean sewing facilities and continued losses in its European operations. Fruit announced more plant closures and the firing of over 7,500 more workers. As a result Fruit's stock fell to $22-3/4 in January 1998.

While Fruit's stock was inflated during the Class Period, Fruit's top executives named as defendants also sold almost 1.4 million shares of their Fruit stock for $46+ million in proceeds.

Plaintiff seeks to recover damages on behalf of all purchasers of Fruit common stock during the Class Period (the "Class"). They are represented by several two firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 30 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's Web site at http://www.milberg.com.

If you are a member of the Class described above, you may, no later than 60 days from July 1, 1998, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at [e-mail].

    CONTACT:  Milberg Weiss Bershad Hynes Lerach
               William Lerach, 800/449-4900
               [e-mail]