Cygne Designs, Inc. Announces Letter of Intent to Acquire a Denim Clothing Supply Business.

NEW YORK -- Cygne Designs, Inc. (OTC BB: CYDS.OB) today announced that it has signed a non-binding Letter of Intent to acquire the branded and private label denim clothing supply business of Commerce Clothing Company LLC, a privately-held company principally owned by Hubert Guez. During 2004, Commerce Clothing re-entered the market after being dormant for several years, and is involved in the design, manufacture and sale of denim clothing. Commerce Clothing had unaudited net sales of approximately $17.26 million for the six months ended December 31, 2004 and approximately $13.4 million for the first quarter of 2005, and anticipates that it will be profitable in both periods. The proposed purchase price would be 12 million shares of Cygne common stock and an eight-year 4.70% per annum promissory note in an amount of $47.5 million. In addition, Cygne would enter into a supply agreement with a company controlled by Mr. Guez to manufacture denim products to be sold by Cygne. The terms of the acquisition set forth in the Letter of Intent could change materially. In addition, there can be no assurance that the transaction will be consummated.

Cygne Designs, Inc. is a manufacturer of private label women's career and casual apparel with sales to retailers and wholesalers located in the United States.

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. The transaction discussed herein is not yet complete, may never be completed and/or could change materially from its present form. In addition, past performance of Commerce Clothing Company LLC and its branded and private label clothing supply business is no guarantee of future performance, which future performance could be materially affected by known and unknown risks, uncertainties and other factors which are difficult or impossible to predict. Such risks, uncertainties and other factors include, but are not limited to, uncertainty regarding the volume and value of future orders by customers, future expenses and costs, changes in inventory value, continued market acceptance of products, competition, and uncertainties relating to economic conditions in the markets in which the company operates. Additional risks and uncertainties are discussed more fully in the Company's Annual Report on Form 10-K for the year ended January 29, 2005 and the Company's other filings with the Securities and Exchange Commission.