John D. Idol Appointed Chief Executive Officer of Kasper A.S.L., Ltd.; Management Team Addition Signals Next Phase of Company's Restructuring.

Business Editors

SECAUCUS, N.J.--(BUSINESS WIRE)--July 18, 2001

Kasper A.S.L., Ltd. (OTC BB: KASP) today announced that John D. Idol has been appointed Chief Executive Officer and a member of the Company's Board of Directors, effective immediately. Mr. Idol succeeds Arthur S. Levine, who will continue as Chairman of Kasper's Board of Directors.

Mr. Idol will report directly to Kasper's Board of Directors, and will have day-to-day responsibility for all aspects of Kasper's business and operations. Mr. Levine will work with Mr. Idol on all merchandising, design, and reorganization-related matters. Additionally, Gregg I. Marks, the Company's President, will continue in that role and is expected to take on expanded responsibilities.

Mr. Idol previously served as Chief Executive Officer and a director of Donna Karan International Inc. since August 1997. Prior to joining Donna Karan, Mr. Idol held various positions with Polo Ralph Lauren Corporation from 1984 through July 1997, where he most recently served as Group President and Chief Operating Officer of Ralph Lauren Clothing Company, Product Licensing, and Home Collection.

"Over the past several months, we have made significant strides with our restructuring, most notably by achieving meaningful cost reductions, sharpening our focus on unit performance, and successfully introducing tighter inventory controls," said Mr. Levine. "As we move into the next phase of our reorganization, I am very pleased to welcome John Idol to the role of Chief Executive Officer. John's proven track record and operational abilities further strengthen our management team, positioning us to take full advantage of the Company's potential."

"I am very excited about joining Kasper," Mr. Idol said. "The Company has long been a leading maker of women's suits, sportswear and career dresses, with strong brands such as Kasper(R), LeSuit(R) and Albert Nipon(R). Kasper is now poised to build upon its recent acquisition of the Anne Klein trademarks. This is a dynamic time for the Company, and I look forward to working with Arthur, Gregg and the entire team at Kasper to help lead its further growth and development."

The Company is actively engaged in discussions with an ad hoc committee of holders of its 13% Senior Notes for the purpose of reaching a consensual restructuring that will allow the company to meet its obligations to such noteholders and enhance its short- and long-term ability to pursue its strategic plans.

As previously announced, the Company did not make its last two semiannual interest payments to such noteholders. The Company is current with all of its other payment obligations to its banks and vendors.

David A. Strumwasser, Managing Director of Whippoorwill Associates, Inc. and a member of the ad hoc committee, said, "The committee strongly endorses the addition of John Idol as Chief Executive Officer. John is a highly regarded executive in the apparel industry, and we believe that the Company will benefit greatly from his leadership and vision. John's arrival should facilitate the Company's restructuring process."

Kasper A.S.L., Ltd. is a leading marketer and manufacturer of women's suits and sportswear, as well as career dresses. The Company's product lines are sold in over 2,000 retail locations throughout the United States, Europe, the Middle East, Southeast Asia and Canada, and the Company's retail outlet stores. The Company currently distributes its products under the KASPER A.S.L.(R), ANNE KLEIN(R), ANNE KLEIN2(TM), A LINE ANNE KLEIN(TM), LeSUIT(R), and ALBERT NIPON(R) labels. The Company also licenses its ANNE KLEIN(R), ANNE KLEIN2(TM), KASPER(R) and ALBERT NIPON(R) labels for various men's and women's products.

This press release may contain forward-looking statements within the meaning of the U.S. federal securities laws. Such forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. For a discussion of those risks and uncertainties, please see "Disclosure Regarding Forward-Looking Information" in Kasper's Quarterly Report on Form 10-Q, filed with the U.S. Securities and Exchange Commission on May 15, 2001. The Company undertakes no obligation to release publicly the results of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors are also directed to other risks discussed in documents filed by the Company with the Securities and Exchange Commission.