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HARTMARX REPORTS ON OPERATIONAL/FINANCIAL RESTRUCTURING; ANNOUNCES THIRD QUARTER RESULTS

 HARTMARX REPORTS ON OPERATIONAL/FINANCIAL RESTRUCTURING;
 ANNOUNCES THIRD QUARTER RESULTS
 CHICAGO, Oct. 14 /PRNewswire/ -- Hartmarx Corp. (NYSE: HMX) today reported the following: actions to complete its operational restructuring, progress in the company's financial restructuring, and operating results for the third quarter and nine months ended Aug. 31.
 The company announced the closing of all 78 Old Mill stores operated by Country Miss and approximately 30 stores operated by Kuppenheimer, along with production facilities supporting these stores. Operating results include a $191 million restructure charge principally related to the previously announced Sept. 18 sale of Hartmarx Specialty Stores, Inc. (HSSI).
 Hartmarx will now be comprised of its highly successful Men's Apparel Group; International Women's Apparel, a marketer of women's sportswear under the "MM by Krizia" and "Austin Reed" labels; Kuppenheimer, a manufacturer-to-consumer marketer of popular priced men's apparel; and the Barrie Pace Catalog women's apparel business. The Men's Apparel Group includes Hart Schaffner & Marx, Intercontinental Branded Apparel, Hickey-Freeman, Trans-Apparel Group, Biltwell Co., Universal Design Group, Henry Grethel Apparel and Fashionaire Career Apparel.
 Elbert O. Hand, Hartmarx chairman and chief executive officer, commented, "The sale of HSSI, the liquidation of the entire Country Miss chain of Old Mill Stores, and the closing of 30 Kuppenheimer's stores substantially comletes the company's operational restructuring. We are now positioned to focus on our successful manufacturing and wholesale businesses. All these businesses are profitable and have excellent potential.
 "Once the company's financing plans have been finalized, we will have effectively addressed all capital issues, ended the cash drain represented by the retail business, and repositioned the company. We will then be in an excellent position to build the value of Hartmarx for all our constituents."
 Negotiations with the company's lenders to restructure and extend the company's debt for a three-year period are continuing. In connection with the sale of HSSI, the company's agreement providing for continuing sales of certain receivables was terminated on Oct. 10, 1992. Also, as part of the sale of HSSI and ongoing negotiations to restructure and extend the company's senior debt agreements, the company obtained waivers through Oct. 30, 1992, of various covenants under its debt agreements. In addition, Hartmarx announced on Sept. 21 that it will raise $30 million in equity through the sale of 5,714,286 shares of its common stock for $5.25 per share and a three-year warrant to purchase an additional 1,649,600 shares of common stock at an exercise price of $6.50 per share. Consummation of the sale is subject to, among other things, Hartmarx reaching agreement with its senior lenders to restructure and extend the company's debt agreements for a three-year period.
 Sales for the quarter and nine months were $264,065,000 and $842,389,000, respectively, compared to $284,118,000 and $896,396,000 in the prior year. The loss before the restructuring charge was $22,805,000 or $.89 per share for the quarter and $35,070,000 or $1.37 per share for the nine months. Including the restructuring charge, losses were $213,605,000 or $8.30 per share and $225,870,000 or $8.84 per share, respectively. For fiscal 1991, the third quarter loss was $16,085,000 or $.72 per share and the nine-month loss was $23,240,000 or $1.10 per share.
 Hartmarx, headquartered in Chicago, is the nation's leading manufacturer and wholesaler of men's and women's apparel.
 HARTMARX CORP.
 Periods ended Three Months Nine Months
 Aug. 31 1992 1991 1992 1991
 Net sales $ 264,065,000 $284,118,000 $ 842,389,000 $896,396,000
 Loss bef.
 taxes (213,605,000) (25,820,000) (232,475,000) (37,480,000)
 Tax benefit -- (9,735,000) (6,605,000) (14,240,000)
 Net loss $(213,605,000) $(16,085,000) $(225,870,000) $(23,240,000)
 Loss per
 share $(8.30) $(.72) $(8.84) $(1.10)
 Average common
 shares and
 equivalents
 outstanding 25,723,000 22,390,000 25,557,000 21,045,000
 -0- 10/14/92
 /CONTACT: Frank Brenner of Hartmarx, 312-372-6300/
 (HMX) CO: Hartmarx Corp. ST: Illinois IN: TEX REA SU: ERN


GK -- NY080 -- 0017 10/14/92 15:36 EDT
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Date:Oct 14, 1992
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