Tarrant Apparel Group Completes Purchase of Denim Mill

Business Wire, April 5, 1999

LOS ANGELES--(BUSINESS WIRE)--April 5, 1999--Tarrant Apparel Group (Nasdaq:TAGS), today announced that it has completed the purchase of the assets of an eighteen million meter annual capacity denim mill located in Puebla, Mexico for 2,000,000 shares of Tarrant common stock and $22 million in cash payable on May 6, 1999. The Company noted that the shares will be released from escrow in three equal annual installments, subject to performance criteria and indemnification obligations.

Gerard Guez, Chairman and Chief Executive Officer, commented, "We are pleased to have completed this transaction, as it represents a key component of Tarrant's vertical integration strategy and provides a solid foundation for the Company's future growth."

Tarrant Apparel Group serves both specialty retail and mass merchandise store chains by designing, merchandising, contracting for the manufacture of and selling casual, moderately-priced apparel, for women, men and children, under private label.

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include a softening of retailer or consumer acceptance of the Company's products, pricing pressures and other competitive factors, or the unanticipated loss of a major customer. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission.