Coach to Open First Flagship Store in the Heart of Chicago's Magnificent Mile.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 18, 2001

Coach, Inc. (NYSE: COH) has announced the opening of a new store in the heart of Chicago's renowned retail district located at 625 North Michigan Avenue at East Ontario Street. The decision to open the new flagship store is a significant step in Coach's strategic growth program, reflecting the importance and strength of Coach's presence in the Midwest.

Coach's North Michigan location will be the seventh and largest store in the Chicago area. It will feature a full selection of handbags, business and travel cases, outerwear, footwear and watches, as well as evening and small leather goods and accessories. Select items from the furniture and home collections will also be available.

"We are delighted to be moving forward with the opening of this important new flagship store in Chicago," said Dave DeMattei, president, Coach Retail. "Over the next 12 months, Coach plans to open at least 20 new retail stores across the country. In addition, Coach will complete its remodeling program of existing Coach stores to reflect the image of the new store design. "

The 4,200 square foot store, designed by architect Michael Neumann, features white maple and ebonized mahogany cabinetry, satin nickel hardware, white travertine flooring and glazed brick feature walls. The store design embodies the energy and direction of Coach's reinvigorated image -- inspired by the American loft movement of the 1940s and 50s -- and complements Coach's "modern classic" product offering.

Underscoring its commitment to a strong presence in the Chicago market, Coach has remodeled its stores at 900 North Michigan Avenue and in the Woodfield and Old Orchard shopping centers. In addition, Coach has relocated and expanded its stores at the Northbrook and Oakbrook malls.

Coach presently has 180 freestanding stores around the United States.

Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, business cases, furniture, luggage and travel accessories, wallets, footwear, watches and related accessories. Coach is sold worldwide through Coach stores, select department stores and specialty stores, through the Coach catalogue in the U.S. by calling 800-262-2411 and through Coach's website at www.Coach.com. Coach's shares are traded on The New York Stock Exchange under the symbol COH.

This press release contains forward-looking statements, based on current expectations, that involve risks and uncertainties that could cause results of Coach, Inc. to differ materially from management's current expectations. These forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "intend," "estimate," "are positioned to," "continue," or the negative thereof or comparable terminology, including predictions of future results. Future results will vary from historical results and historical growth is not indicative of future trends, which will depend upon expected economic trends, our ability to anticipate consumer preferences for accessories and fashion trends, our ability to control costs, our store expansion and renovation program, and are subject to risks, including currency fluctuations, and other factors. Please refer to the company's most recent Prospectus for a complete list of risk factors.