Cygne Designs, Inc. Announces Fourth Quarter and Year 2000 Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 3, 2001

Cygne Designs, Inc. (OTC BB:CYDS.OB) today announced results of operations for the fourth quarter and year ended February 3, 2001.

Net sales for the fourth quarter ended February 3, 2001 were $8,143,000, an increase of $ 2,271,000 or 39% from the fourth quarter of 1999. The increase in sales for the fourth quarter of 2000 compared to the comparable period in 1999 was partially attributable to increased sales to The Limited, Inc. and partially attributable to trial orders with new customers.

Net sales for the year ended February 3, 2001 were $28,381,000, a decrease of $27,017,000 or 49 % from 1999. Sales of the Knit division, which was sold on October 31, 1999, for year 1999 were $32,008,000. If the sale of the Company's Knit business had been consummated on January 31, 1999 (the first day of year 1999) the Company would have had proforma net sales of $23,390,000 for 1999. The net sales for 2000 of $28,381,000 were greater than the proforma sales for 1999 of $23,390,00 by $4,491,000 or 21%. The Limited Inc. accounted for 78% of the increase in sales with the balance of the increase attributed to trial orders to new customers.

The Limited, Inc. accounted for 87% of the sales for the fourth quarter of 2000 compared to 100 % in the comparable period in 1999 and accounted for 95% for year 2000 compared to 45% in year 1999.

Net loss for the fourth quarter ended February 3, 2001 was $36,000 or breakeven on a basic and dilutive per share basis, compared to a net income of $29,000 or breakeven on a basic and dilutive per share basis, in the comparable prior period. Net income for the year ended February 3, 2001 was $ 189,000 or $0.02 on a basic and dilutive per share basis, compared to a net loss of $ 1,027,000 or $ 0.08 on a basic and dilutive per share basis, in the comparable prior period.

If the sale of the Knit business had been consummated on January 31, 1999, the Company would have had proforma income from operations of $ 249,000 and proforma net income of $270,000 or $0.02 on a per share basis for the fourth quarter ended January 29, 2000. The Company would have had proforma income from operations of $258,000 and proforma net income of $254,000 or $0.02 on a per share basis for the year ended January 29, 2000.

Cygne Designs, Inc. is a private label manufacturer of women's career and casual apparel.

Statements contained in this press release which are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those projected. Such risks and uncertainties are discussed more fully in the Company's annual report on 10-K for the year ended February 3, 2001 and the Company's other filings with the Securities and Exchange Commission.

                 CYGNE DESIGNS, INC. AND SUBSIDIARIES
           Condensed Consolidated Statements of Operations
           (Unaudited, in thousands, except per share data)

                              Three Months Ended       Year Ended
                           ------------------------  --------------
                        February 3  January 29  February 3  January 29
                             2001      2000        2001        2000
                       ------------ ----------- ----------- ----------

Net sales                     $  8,143  $  5,872  $ 28,381  $ 55,398
Cost of goods sold               7,086     5,045    24,852    50,657
                              --------  --------  --------  --------
Gross profit                     1,057       827     3,529     4,741
Selling, general and
 administrative expenses         1,161       764     3,508     3,874
Provision for impairment
 of Knit business assets          --         209       --      1,625
Recoupment of lease
 termination expense              --        (186)      --       (186)
                              --------  --------- -------- ----------
(Loss) income from
 operations                       (104)       40        21      (572)
Interest income                   (162)      (40)     (277)     (122)
Interest expense                    89        51        89       530
                              --------- --------- --------- ---------
(Loss)  income before
 provision for income
 taxes                             (31)       29       209      (980)
Provision for income
 taxes                               5       --         20        47
                              --------- --------- --------- ---------
Net (loss) income             $    (36) $     29  $    189  $ (1,027)
                              ========= ========= ========= =========

Net (loss) income per
 share-basic and dilutive     $  (0.00) $   0.00  $   0.02  $  (0.08)
                              ========= ========= ========= =========

Weighted average number
 of common shares
 outstanding                    12,438    12,438    12,438    12,438
                              ========= ========= ========= =========