Liz Claiborne Inc. Concludes Strategic Review of Ellen Tracy

NEW YORK, Feb. 14 /PRNewswire-FirstCall/ -- Today Liz Claiborne Inc. announced that it has entered into an agreement with a group of investors including Radius Partners LLC, William Sweedler of Windsong Brands LLC, Barry Sternlicht and Marvin Traub to sell substantially all of the assets and liabilities of the Ellen Tracy brand for a purchase price consisting of a $27.3 million cash payment subject to inventory adjustment payable at closing, and a contingent cash payment of up to $15.0 million based on brand performance from 2008 through 2012. Liz Claiborne Inc. will retain approximately $8.2 million in net working capital, excluding inventory. Liz Claiborne Inc. is in the process of reviewing the impact of this transaction to its results. The transaction is expected to close in the second quarter of 2008.

To ensure a smooth and orderly transition for retail partners, vendors and employees, Liz Claiborne Inc. has agreed to provide certain transition services to the new company.

Stuart Jamieson, Managing Director of Radius Partners LLC and Bill Sweedler, CEO of Windsong Brands, stated, "We are thrilled to have the opportunity to acquire such a notable and renowned fashion company with a 59- year heritage. Together, along with a strong team of employees, we will return the Ellen Tracy brand to the prestigious status it enjoyed throughout its history under the leadership of the legendary Herbert Gallen and Linda Allard."

Marvin Traub, President of Marvin Traub Associates, commented, "Ellen Tracy remains a very powerful brand with enormous support from consumers and retailers alike, and we look forward to building on its great foundation."

William McComb, Chief Executive Officer of Liz Claiborne Inc., commented, "Ellen Tracy is an iconic brand, and we are confident that the new owners will invest in this business and give it the care and attention it deserves. We are also thrilled that the substantial majority of Ellen Tracy employees will be retained as part of the deal."

Liz Claiborne Inc. has concluded the strategic reviews of 14 of the 16 brands it had placed under review. The strategic review of the remaining brands -- Kensie and Mac & Jac -- is on schedule to be completed by the end of the first quarter of 2008.

About Liz Claiborne Inc.

Liz Claiborne Inc. designs and markets an extensive range of branded women's and men's apparel, accessories and fragrance products. The Company's diverse portfolio of quality brands -- available domestically and internationally via wholesale and retail channels -- consistently meets the widest range of consumers' fashion needs, from classic to contemporary, active to relaxed and denim to streetwear. For more information, visit http://www.lizclaiborneinc.com/.

About Radius Partners LLC

Radius Partners LLC was formed to provide special situation/unique investment opportunities in both growth and distressed mid-market companies, with a primary focus in the industrial manufacturing, distribution, consumer, and entertainment sectors. Our operational and financial expertise is specifically designed to assist and enhance the businesses operations and profitability. Radius maintains funding relationships with several large private equity funds, hedge funds and alternative asset managers, which allows for quick transaction execution. For more information, visit http://www.radiuspartnersllc.com/.

About Windsong Brands, LLC

Windsong Brands, LLC is private equity firm that focuses on investments in leading middle market consumer companies that own strong recognizable brands. The team has a diverse background of consumer expertise that assists and guides company management to unlock the true potential of their brand. Windsong Brands makes majority and minority investments in both public and private companies. For more information, visit http://www.windsongbrands.com/.