Cygne Designs Announces Third Quarter and Nine Months 2005 Results.

NEW YORK -- Cygne Designs, Inc. (OTCBB: CYDS) today announced results for the three and nine months ended October 31, 2005.

For the three months ended October 31, 2005, net sales increased to $22.9 million compared to $8.5 million in the prior year period. $16.6 million of the increase in sales resulted from our acquisition of the branded and private label business of Diversified Apparel Resources LLC ("DAR"), which was acquired on July 31, 2005. Gross profit in the third quarter increased to $5.3 million compared to $1.1 million in the prior year. Third quarter gross margins increased to 23.1% compared to 12.8% in the prior year period. The increase in gross margin was due to higher gross margins on sales stemming from the acquisition for product sourced through a supply agreement with DAR. Selling, general, and administrative expenses for the third quarter of 2005 were $3.9 million compared to $830,000 in the prior year period. The increase in SG&A was attributable to the additional expenses of the acquired business. The Company had a net loss of $128,000, or ($0.01) on a basic and diluted per share basis for the third quarter, after a $530,000 one-time amortization of the acquired order backlog intangible asset attributable to the acquisition of DAR, compared to net earnings of $115,000 or $0.01 on a basic and diluted per share basis in the third quarter of the prior year.

For the nine months ended October 31, 2005, net sales increased 33.6% to $32.6 million compared to $24.4 million for the nine month period of the prior year. Sales of the products acquired from DAR accounted for $16.6 million of the $8.2 million increase in sales. Gross profit for the nine months ended October 31, 2005 increased to $6.2 million compared to $3.2 million for the prior year period. Gross margins increased to 19.1% compared to 13.3% in the prior year period as a result of higher gross margins on sales stemming from the acquisition for product sourced through a supply agreement with DAR in the third quarter. The Company recorded a net loss of $745,000, or ($0.05) on a basic and diluted per share basis for the nine month period ended October 31, 2005 compared to net earnings of $215,000, or $0.02 on a basic and diluted per share basis for the prior year period. $530,000 of the net loss resulted from a one-time amortization of the acquired order backlog intangible asset attributable to the acquisition of DAR.

We and our factor use EBITDA as a supplemental financial measure to assess the financial performance of our assets without regard to financing methods and capital structure. EBITDA should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA excludes some items that affect net income and operating income. Since these items may vary among other companies, EBITDA as presented below may not be comparable to similarly titled measures of other companies. A reconciliation of EBITDA to net income (loss) is shown in the table below.

Reconciliation of EBITDA        Three Months Ended  Nine Months Ended
------------------------        ------------------  -----------------
(In thousands)
                                 October   October   October   October
                                31, 2005  30, 2004  31, 2005  30, 2004
                                --------  --------  --------  --------
Net income (loss)                  ($128)     $115     ($745)     $215
Depreciation and amortization        801        78       933       218
Interest expense, net                716        54       694       150
Provision for income taxes            18         5        28        15
                                      --         -        --        --
EBITDA                            $1,407      $252      $910      $598
                                  ------      ----      ----      ----

Bernard Manuel, Chief Executive Officer of Cygne Designs said, "We are pleased with Cygne's performance for the third quarter and with the integration of our recent acquisition."

About Cygne Design Inc.

Cygne Designs, Inc. is a designer and producer of branded and private label denim, casual and career apparel with sales to a broad range of retailers in the United States. Cygne's brands include Hippie, Hint Jeans and Manhattan Blues.

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 Form 10-K for the year ended January 29, 2005 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     Nine Months Ended
                           --------------------- ---------------------
                           October 31 October 30 October 31 October 30
                              2005       2004       2005       2004
                           ---------- ---------- ---------- ----------

 Net sales                   $22,935     $8,470    $32,552    $24,374
 Cost of goods sold           17,645      7,383     26,338     21,141
                              ------      -----     ------     ------
 Gross profit                  5,290      1,087      6,214      3,233
 Selling, general and
  administrative expenses      3,883        830      5,202      2,615
 Depreciation and
  amortization                   801         78        933        218
 Provision for
  restructuring                   --         --        102         --
                                  ---        ---       ---         ---
   Income (loss) from
    continuing operations
    before interest and
    income taxes                 606        179        (23)       400
 Interest expense, net           716         54        694        150
                                 ---         --        ---        ---
   (Loss) income from
    continuing operations
    before income taxes         (110)       125       (717)       250
 Provision for income taxes       18          5         28         15
                                  --          -         --         --
 (Loss) income from
  continuing operations         (128)       120       (745)       235
 (Loss) from discontinued
  operation                       --         (5)        --        (20)
                                  ---        ---        ---       ----
 Net (loss) income             ($128)      $115      ($745)      $215
                               ======      ====      ======      ====
 (Loss) per share-basic and
  diluted from continuing
  operations                  ($0.01)     $0.01     ($0.05)     $0.02
 (Loss) per share-basic and
  diluted from discontinued
  operation                       --         --         --         --
                                  ---        ---        ---        ---
 Net (loss) income per
  share-basic and diluted     ($0.01)     $0.01     ($0.05)     $0.02
                              =======     =====     =======     =====

Weighted average common
 shares outstanding:
  Basic                       22,958     12,438     16,002     12,438
                              ======     ======     ======     ======

  Diluted                     22,958     12,443     16,002     12,443
                              ======     ======     ======     ======