London Fog Industries Exits Chapter 11

Business Wire, April 17, 2001

Business Editors

SEATTLE--(BUSINESS WIRE)--April 17, 2001

London Fog Industries, an international leader in rainwear and outerwear, today announced its emergence from Chapter 11.

On April 5, 2001, the United States Bankruptcy Court in Delaware approved London Fog Industries' reorganization plan. Following the expiration of the 10-day appeal period yesterday, London Fog Industries will exit Chapter 11 today.

London Fog Industries' President and Chief Executive Officer William Dragon, Jr. declared that the company is both stronger and healthier with respect to its income statement and balance sheet, citing strong 2001 fiscal year earnings (year end Feb 2001) and the elimination of long term operating debt.

London Fog Industries voluntarily filed for reorganization under Chapter 11 in September 1999 to liquidate the majority of its retail outlets, eliminate excess overhead and reduce its long term operating debt. As a result, the company has closed nearly all of its retail operations, keeping only 35 of its most profitable factory outlet stores strictly to aid in liquidating inventory.

Dragon, who led the Pacific Trail subsidiary into record growth during his tenure as President of Pacific Trail, was tapped as CEO by the London Fog Industries board of directors in March of 1999 to lead the company's reorganization. One of Dragon's first initiatives was to file for Chapter 11 protection and launch an 18-month plan to return London Fog Industries to a leading position as a designer, marketer and distributor of high quality outerwear and rainwear for men, women and children.

Established in 1922, London Fog Industries is one of the country's leading designers, marketers, and distributors of quality rainwear and outerwear which includes the London Fog(R), Pacific Trail(R) and Black Dot(R) brands as well as licensed brands, Dockers(R) and Levi's(R). London Fog Industries is based in Seattle, with offices in New York and a distribution center in Eldersburg, Maryland. The company has over 900 employees and currently operates 35 factory outlet stores throughout the country.

London Fog Industries is located at 1700 Westlake Ave. N., Suite 200, Seattle, WA 98109. Telephone: 206/270-5300.