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DESIGNS, INC.
(NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
JEWELCOR MANAGEMENT, INC.
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FOR IMMEDIATE RELEASE
January 27, 1999
Contact: Jacqueline Quigley (561) 447-4713
Will the Board of Directors of Designs, Inc. Really Sell the Company?
Wilkes-Barre, Pennsylvania..."Shareholders of Designs, Inc. (NASDAQ-DESI) should
have a great concern as to whether or not the Board of Directors really intends
to sell the company," stated Seymour Holtzman, President, Jewelcor Management,
Inc. (JMI), a 9.9% shareholder of the company.
Holtzman said, "It has been well over a month since the company announced its'
intention to sell, and the indicated activity is less than impressive. I thought
the company would welcome my proposal to purchase the company for $3.00 per
share, subject to financing. I was shocked and dismayed that they instead chose
to attack my motives. This is rather curious since it has been publicly rumored
that Joel Reichman, President of Designs, Inc. and a director may be looking for
financing to do a management led buyout. What kind of conflict of interest does
he have?"
"For the past month, the company has commented that a change of control could
jeopardize their banking relationship, which I find to be very amusing. Why in
the world would a financial institution like the Bank of Boston be impressed
with management that has lost $71.4 million over the 21 months ended October 31,
1998? I certainly can understand a financial institution "locking in" a loan
relationship based on tried, proven and good management, which certainly is not
the case with Designs, Inc."
"Furthermore, as of October 31, 1998, the company borrowed $10.3 million from
the Bank of Boston which was collateralized by $58 million of inventory and a
substantial amount of all of the other assets of the corporation. I just do not
believe that it is any big deal to replace that type of financing arrangement."
Holtzman stated, "The company's ad hominem attacks and cheap shots at me are
transparent. I have always looked to help the shareholders get added value, and
that most certainly is the case here. However, I have grave concerns as to
whether or not the company will accept any offer. In that case, the company does
not have to notify shareholders of that decision and could easily put into place
additional anti-takeover defenses."
"If the Board of Directors really intends to sell the company, then they should
make a statement that there will be a clean auction process with no "sweetheart"
deals, no lockup options, no breakup fees, or other schemes that would affect a
"level playing field" for all interested parties."