Cutter & Buck Announces Two New Retail Locations; Successfully Completes Phase Two of Warehouse Management System Implementation.

Business Editors

SEATTLE--(BUSINESS WIRE)--Aug. 21, 2000

Cutter & Buck Inc. (Nasdaq:CBUK), the Seattle-based men's and women's sportswear and business casual apparel company, announced today that it will open retail stores in West Palm Beach, Florida and Palm Desert, California.

Cutter & Buck signed a lease for a 4,129 sq. ft. retail location in The Palladium at City Place, located in West Palm Beach, Florida. The new development will have over 650,000 sq. ft. of retail space, restaurants, movie theaters and entertainment locations. "We are continuing to find unique shopping areas around the country that appeal to large numbers of our target consumers," stated Harvey Jones, CEO. "This is one of the most exciting new retail developments in the nation, and should draw visitors from all over Palm Beach County, and especially from Palm Beach itself."

Cutter & Buck also signed a lease for a 5,042 sq. ft. retail location at The Gardens in El Paseo, located in Palm Desert, California. "We've been looking for the right location to showcase our fashion collections in the Palm Springs area," stated Jones. "We certainly have a great following there. Now we can give our consumers a lively, beautiful store in the heart of the upscale shopping area."

Cutter & Buck currently has seven company-owned retail stores: Seattle, WA., Denver, CO., Orlando, FL., Mission Viejo, CA., Atlanta, GA., Portland, OR. and Las Vegas, NV. The two locations announced today are currently scheduled to open in Fall 2000.

The Company also announced that phase two of its warehouse management system (WMS) implementation at its new distribution center was successfully completed on June 19, 2000. Phase two of the WMS implementation established all inbound inventory receiving and automated location selection functions.

"Our phased implementation approach is designed to optimize benefits and cost considerations and minimize risk factors," stated Martin Marks, President & COO. "Phase one, completed on April 30, 2000 successfully concluded with the use of the new warehouse management system to expedite year-end physical inventory. Since that time we have maintained unprecedented inventory location integrity of more than 98%."

"I am very pleased with the results we have achieved from completing the first two phases of the new warehouse management system," continued Marks. "These inventory management features are allowing us to achieve greater efficiencies and effectiveness in our distribution center operations."

The implementation of phase three is progressing smoothly and the company is currently on track to complete the remaining functions during the second quarter of this fiscal year, ending on October 31, 2000. Phase three of the WMS implementation includes all outbound processing and substantial integration to host systems. This phase of the WMS offers important potential benefits and is expected to further enhance inventory management, customer service and order fulfillment capabilities.

Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Those factors include, but are not limited to, style changes and product acceptance, relations with suppliers and independent sales representatives, the ability of the Company to control costs and expenses, the ability of the Company to carry out successful design and planned product and brand messaging/extension activities and to penetrate its chosen distribution channels, competition, foreign currency risks, risks associated with opening and operating retail locations, the ability of the Company to timely implement the new warehouse management system and the efficacy of that new system as it relates to the Company's operations, technological change, political and trade relations and general economic conditions. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission filings. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.

Cutter and Buck designs and markets upscale sportswear and outerwear under the Cutter & Buck brand. The Company sells its products primarily through golf pro shops and resorts, corporate sales accounts and better specialty stores. Cutter & Buck products feature distinctive, comfortable designs, high quality materials and manufacturing and rich detailing.