Sportswear & Jean Guru Arnold Simon Signs Licensing Agreement With Rap Mogul and Phat Farm Founder Russell Simmons

Business Wire, August 9, 1999

NEW YORK--(BUSINESS WIRE)--Aug. 9, 1999--

Phat Farm, a unit of Rush Communications, Inc. founded by Russell Simmons, today announced an agreement with Aris Industries, Inc. (OTC BB:AISI) for the worldwide licensing rights of Baby Phat sportswear. The initial license is renewable for up to 25 years. Baby Phat expects to be able to launch the line for Spring 2000.

"During the past seven years, we at Phat Farm have built an outstanding image and unique design direction for Baby Phat," says Simmons, Chairman and Chief Executive Officer of Rush Communications. "It is classic, sexy and sophisticated and yet creative enough to appeal to younger consumers. Currently, there is a tremendous need in the marketplace for a powerful mainstream jean and sportswear company that understands and respects the input of the urban consumer, the most influential trendsetters in commercial mainstream fashion."

Simmons is also looking forward to working with Aris Industries' CEO, Arnold S. Simon and Gregg Fiene, the head of XOXO, which Aris is in the process of completing the acquisition of. "Arnie Simon is a visionary and I am certain that his company, Aris Industries, with their great sourcing, production and distribution will be an excellent partner in helping us fill this void," he says.

Arnold Simon, commenting on acquiring the worldwide rights to Baby Phat sportswear, said, "Phat Farm and Baby Phat are outstanding brands with a wide appeal among sportswear consumers. Russell Simmons has committed his full support to making this licensing agreement as successful as possible. His entrepreneurial spirit and reputation for visionary marketing and salesmanship will help us build Baby Phat into a true global brand."

Gregg Fiene stated: "For Aris, this agreement is a perfect complement to the XOXO line of young sport contemporary apparel and we plan to leverage our XOXO infrastructure in order to swiftly introduce Baby Phat sportswear for Spring 2000." The Baby Phat sportswear line will include a full line of clothing including pants, skirts, dresses, shorts, skirts, sweaters, jackets in knit and woven materials -- and is complemented by jeanswear.

Founded in 1992, Simmons' Phat Farm has quickly grown into one of the most highly respected and coveted classic, urban sportswear lines. As an alternative to the typical sportswear lines in the marketplace, Simmons created Phat Farm to represent an upscale lifestyle -- "The New American Dream." The Phat Farm line includes menswear, boyswear, bags, belts, lounge wear, underwear, shoes, jewelry and womenswear.

Baby Phat debuted in 1993 with a fitted T-shirt line and the immense popularity of the T-shirts has helped create and build brand awareness over the past five years. Other products have been introduced, but have had limited distribution backpacks, slip dresses, polo shirts, skirts, bikinis, lingerie, and a faux fur and leather collection. Appealing to the modern woman between the ages of 15-45, Baby Phat is designed for a broad demographic group - it crosses boundaries with its universal appeal.

Simmons is the founder, Chairman and CEO of Rush Communications, Inc., a diversified multi-media company with music, television, film, advertising and fashion interests. Rush Communications Inc., oversees the management of the following businesses: Phat Fashions; Def Jam Recordings; RSTV (Russell Simmons Television); Def Pictures; Rush Media and Oneworld Entertainment.

Arnold Simon, involved in the apparel industry for more than 28 years, acquired the Calvin Klein Sportswear business in 1994 while head of Designer Holdings. By 1997, revenues of Calvin Klein products increased from $59 million to $680 million, a 1200% increase. In February 1999, a group of investors led by Arnold Simon took controlling interest of Aris Industries and have subsequently announced the acquisition of licensing rights for Stetson inspired apparel and are in the process of completing the acquisition of Lola Inc. and XOXO. Gregg Fiene founded Lola, Inc., dba XOXO in 1991.

Aris Industries owns the XOXO line of young women's contemporary apparel designs and imports Members Only and private label men's outerwear and sportswear, as well as FUBU boy's sportswear and men's lounge wear; Perry Ellis and Perry Ellis America men's outerwear and lounge wear; and boy's outerwear and sportswear. It is also the licensor of other Members Only products, domestically and internationally, and the exclusive worldwide licensor of Stetson-inspired casual apparel.