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GITANO GROUP REPORTS FIRST QUARTER RESULTS

 GITANO GROUP REPORTS FIRST QUARTER RESULTS
 NEW YORK, May 5 /PRNewswire/ -- The Gitano Group, Inc. (NYSE: GIT)


today announced that, for the first quarter ended March 31, 1992, income before extraordinary tax credit was $4,945,000, a 98.1 percent increase from $2,496,000 in the 1991 first quarter. Net income was $6,110,000. Net sales totalled $234,097,000 for the quarter, reflecting a 20.8 percent increase from net sales of $193,815,000 recorded a year ago. Earnings per share for the quarter, before and after extraordinary tax credit, were $.31 and $.38, respectively, based on 15,998,717 weighted average shares outstanding compared with $.16 per share based on 16,036,779 weighted average shares outstanding in 1991.
 Haim Dabah, president and chief operating officer of The Gitano Group, Inc. said, "We are pleased at our return to profitability this quarter. Sales were higher than planned in the quarter due primarily to strong demand in March. Gross profit margins and selling, general and administrative expenses were within our targeted goals."
 Commenting further, Dabah said, "While we are pleased with our first quarter results, we are still concerned with the current uncertain retail climate and are diligently continuing our efforts to refocus the Company on its historically profitable core businesses."
 The Gitano Group, Inc.'s primary business is supplying branded, high quality, affordable apparel to mass merchants and discounters. Gitano's products include fashion basic clothing for women, men and children, as well as intimate apparel and accessories. The average retail price of our apparel is under $20.
 Gitano licenses its brands for shoes, hosiery, watches, home furnishing and other products. We also operate 100 company-owned retail stores at outlet locations selling Gitano products exclusively. The company's other brands include Gloria Vanderbilt, which is sold to moderate department and specialty stores, and Regatta Sport, which is sold to upscale department and specialty stores, and catalogues.
 Headquartered in New York, Gitano, through its Global Sourcing Network Operation of 12 overseas offices manages a network of suppliers in over 35 countries throughout the world.
 THE GITANO GROUP, INC.
 Selected Financial Data
 (Unaudited, $ in 000's, except per share data)
 Three months ended March 31 1992 1991
 Net sales $234,097 $193,815
 Cost of sales 176,449 143,690
 Gross profit 57,648 50,125
 (as a percent) 24.6 25.9
 Selling, general and
 administration expenses 46,279 42,427
 (as a percent) 19.8 21.9
 Income from operations 11,369 7,698
 Interest expense 4,938 4,578
 Income before provision for income
 taxes and extraordinary credit 6,431 3,120
 Provision for income taxes 1,486 624
 Income before extraordinary credit 4,945 2,496
 Extraordinary credit--Reduction of
 income taxes arising from carry-
 forward of prior year U.S.
 operating losses 1,165 --
 Net income $6,110 $2,496
 Earnings per share of common stock
 before extraordinary credit $0.31 $0.16
 Earning per share of common stock $0.38 $0.16
 Weighted average shares outstanding 15,998,717 16,036,779
 -0- 5/5/92
 /CONTACT: Haim Dabah, president, 212-819-0707, or Gustave Birnberg, senior vice president, 212-564-6100, both of The Gitano Group/
 (GIT) CO: Gitano Group Inc. ST: New York IN: REA SU: ERN


TS -- NY015 -- 6401 05/05/92 09:23 EDT
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Date:May 5, 1992
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