FOR IMMEDIATE RELEASE
Jones Apparel Group, Inc.
Contacts: Wesley R. Card, Chief Financial Officer
Anita Britt, Vice President Finance and Investor Relations
(215) 785-4000
JONES APPAREL GROUP, INC. ANNOUNCES THAT IT HAS SIGNED
A LETTER OF INTENT TO PURCHASE VICTORIA + CO LTD
New York, New York -- June 12, 2000 -- Jones Apparel Group, Inc.
(NYSE:JNY) announced that it has signed a letter of intent to purchase
100% of the equity of Victoria + Co Ltd., ("Victoria"), a privately
held company owned by Robert Andreoli, Chairman, and several equity
partners. Victoria is a leading designer and marketer of branded and
private label costume jewelry sold to fine department and specialty
stores. Victoria markets its products under the national brand names
Napier and Richelieu, and under several licensed brands including Nine
West, Tommy Hilfiger, and Givenchy, as well as numerous private label
brand names. Retail price points for its products range from $7 to
$250. Jones Apparel Group will purchase the Company for $90 million
including approximately $65 million of assumed debt. There is a
potential for additional future payments based on Victoria's operating
performance.
Sidney Kimmel, Chairman of Jones Apparel Group, stated, "We believe this
combination offers us a tremendous opportunity. The addition of branded
costume jewelry to our existing product offerings of apparel, footwear
and accessories, provides a new dimension to our corporate strategy of
offering our customer complete head to toe dressing, with trusted brand
names. We have great respect for the businesses which Victoria has
developed within the department store and specialty store channels, and
look forward to capitalizing on the strengths and talents of our combined
companies to maximize future growth and profitability."
Wesley R. Card, Chief Financial Officer of Jones Apparel Group, added,
"Victoria is a company which fits well into our corporate profile; it
holds commanding marketshare positions within the distribution channels
in which it operates, its products target a wide audience of consumers
by gender, age and income level, and, very importantly, it markets its
products under numerous nationally recognized brand names. This
acquisition will provide a new, integral business to complement our
existing businesses and also provide further balance in our product mix."
Robert Andreoli, Chairman of Victoria, commented, "We welcome the
opportunity to join an industry leader such as the Jones Apparel Group.
We believe this merger provides us with an infinite number of opportunities,
given Jones Apparel's outstanding portfolio of brand names, coupled with
our expertise in the costume jewelry business."
Jones Apparel Group, Inc. (www.jny.com) is a leading designer and
marketer of branded apparel, footwear and accessories. The Company's
nationally recognized brands include: Jones New York; Lauren by Ralph
Lauren, Ralph by Ralph Lauren, and Polo Jeans Company, which are licensed
from Polo Ralph Lauren; Evan-Picone, Rena Rowan, Todd Oldham, Nine West,
Easy Spirit, Enzo Angiolini and Bandolino. As the Company celebrates its
30th anniversary, it has built a reputation for excellence in product
quality and value, and in operational execution.
Certain statements herein are "forward-looking statements" made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements represent the Company's
expectations or beliefs concerning future events that involve risks and
uncertainties, including the strength of the economy and the overall level
of consumer spending, the performance of the Company's products within the
prevailing retail environment, and other factors which are set forth in
the Company's 1999 Form 10-K and in all filings with the SEC made by the
Company subsequent to the filing of the Form 10-K. The Company does not
undertake to publicly update or revise its forward-looking statements as
a result of new information, future events or otherwise.
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