Donnkenny, Inc. announces acquisition of Fashion Avenue Knitwear; Expects Addition of $40 Million In Revenues for Fiscal 1997.

NEW YORK--(BUSINESS WIRE)--September 9, 1996--Donnkenny, Inc. (Nasdaq: DNKY) today announced the acquisition of Fashion Avenue Knitwear, a maker of sweaters and knits primarily for the "juniors" market. Financial terms of the acquisition were not disclosed.

According to the Company, the acquisition is expected to add approximately $40 million in annual sales volume during the 1997 fiscal year. Donnkenny anticipates that the immediate effect of the transaction on the Company's financial performance will be relatively neutral for the balance of fiscal 1996 and will be accretive to Donnkenny's earnings in fiscal 1997.

Richard Rubin, President and Chief Executive Officer, noted, "We are excited about the opportunities presented by this acquisition, particularly the addition of a "juniors" sweater line, as it is complementary to our current product line and expands our already strong offerings of women's casual apparel."

Based in Ridgewood, New York, Fashion Avenue Knitwear designs and manufactures ladies and men's knits and sweaters, primarily for the "juniors" market. The company's apparel, which is sold under such branded labels as "It's Our Time," "U.S. Sweater," and "33 Degrees," is distributed through department stores, department store chains and specialty retailers.

Donnkenny, Inc. designs, manufactures, imports and markets a broad line of moderately-priced women's sportswear and markets women's, men's and children's sportswear and intimate apparel featuring various licensed cartoon characters. Donnkenny's products are sold nationwide to approximately 27,000 stores, representing approximately 11,000 individual operations and retail groups.

CONTACT: DONNKENNY, INC.

Ed Creevy, 212/730-7770 Ext. 3039

or

Morgen-Walke Associates

Investor Relations: David Walke/Howard Zar

Shannon Moody

Press: Michael McMullan

212/850-5600