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THE DONNA KARAN COMPANY SUSPENDS PLANNED PUBLIC STOCK OFFERING

 NEW YORK, Nov. 17 /PRNewswire/ -- The partners in The Donna Karan Company said that the Company is currently suspending its planned initial public offering. The announcement was made at a press conference today by the Company's Co-Chief Executive Officers, Donna Karan and Stephan Weiss, speaking on behalf of the partnership.
 Ms. Karan stated, "We have made this decision despite the enthusiasm of our underwriting group and our belief that the offering would have been a great success. The fact is, this was just not the right time for us. We don't feel that a public offering at this time would reflect the potential value of the Company."
 Mr. Weiss noted, "Our decision was based on the fact that, at the present time, we do not believe that our offering would receive a valuation that truly reflects the Company's long-term potential for growth and profitability. Our financial results are now available for the first nine months of 1993 and were very solid. Sales were up sharply, to almost $265 million, and operating earnings were over $28 million for the first nine months of 1993. Because of the soft retail environment, however, the third quarter trends were not up to our internal expectations. We are confident that this is a temporary situation, and this snap-shot would not have given potential investors in the offering a true image of the Company's growth prospects and earning power."
 "We came to the conclusion that to proceed with a public offering under less than optimal conditions would not be in the best interests of the Company or its potential investors. Also, the Company has more than sufficient financial resources to support its operations and near-term growth plans, so there is just no economic pressure to conduct an offering at an unfavorable time. We will consider resuming plans for an offering when we deem it appropriate," Mr. Weiss concluded.
 The Company initially had announced the filing with the SEC of a registration statement for the planned public offering of 11,000,000 shares of common stock on Aug. 13, 1993.
 The Donna Karan Company is a leading international fashion design firm known for its Donna Karan New York(R) and DKNY(R) lines of women's, men's and children's clothing, sportswear, accessories, furnishings and beauty products.
 -0- 11/17/93
 /CONTACT: Lynn Morgen, Terry Rooney or Edward Nebb of Morgen-Walke Associates, 212-789-1500, or 212-850-5600/


CO: The Donna Karan Company ST: New York IN: TEX SU: OFR

SH -- NY063 -- 5500 11/17/93 12:34 EST
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Publication:PR Newswire
Date:Nov 17, 1993
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