Hampshire Signs Licensing Agreements for Joseph Abboud Apparel

Business Wire, Oct 18, 2007

NEW YORK -- Hampshire Group, Limited (Pink Sheets: HAMP.PK) today announced that it has signed licensing agreements with JA Apparel Corp. to market men's tops and women's related separates under classification labels of the Joseph Abboud[R] Brand. These new licenses enable Hampshire's men's division to become a true year round resource for its retail partners, while affording significant opportunity for Hampshire to broaden the penetration of its related separates business within the department store channel.

The Joseph Abboud men's knit and woven top business melds Hampshire's proven ability to market brands and consistently deliver fashion, quality and value to the American consumer, with an established, respected designer brand. The men's tops are expected to launch in fall 2008 at an average retail price range of $50.00 to $90.00. The women's related separates business is slated for a spring 2009 debut.

"We are thrilled to be associated with JA Apparel Corp. and to join the team expanding this great brand," said Michael Culang, acting President and Chief Executive Officer of Hampshire. "This is a significant opportunity for Hampshire Group in that the marketing of the Joseph Abboud Brand facilitates the extension of our men's selling season while concurrently diversifying our product offerings, thereby spurring growth for our company and greater market share for our men's and women's divisions. This is an impressive addition to our cache of brands, one that has generated excitement and anticipation throughout our entire organization."

Marty Staff, President and Chief Executive Officer of JA Apparel Corp., remarked that, "Hampshire's reputation with retailers for delivering highly salable apparel, sought out by consumers for both its fashion sense and quality, makes it the perfect partner to design and market classification apparel that is complementary to our collection business. Hampshire's efforts will certainly help us to further solidify the Joseph Abboud brand's position as a premier worldwide retail lifestyle brand."

About Hampshire Group

Hampshire Group, Limited is a diversified men's and women's apparel company, marketing to multiple tiers of distribution.

About JA Apparel Corp.

The Joseph Abboud[R] Brand embodies sophisticated American style for traditional menswear. Joseph Abboud brand instills confidence through tailored collections and unique sportswear that are crafted from the world's finest fabrics and defined by superior fit, exceptional quality and remarkable luxurious style. Since it's inception in 1987, the brand has grown into a $300 million worldwide retail lifestyle brand with an expanding number of products in the following categories including men's apparel and accessories, boy's apparel, and home furnishings. Joseph Abboud brand names include Joseph Abboud, Joseph Abboud Jeans Inc., JOE Joseph Abboud, Joseph Abboud BOYS, and Joseph Abboud Home. Joseph Abboud branded products are available in superior department stores and specialty stores throughout the United States, Canada, Mexico, Japan and Indonesia. Information may be found at www.josephabboud.com.

Cautionary Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect the Company's current views with respect to future events. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events. Readers are urged to review and consider carefully the various disclosures made by the Company in its Form 10-K and other Securities and Exchange Commission filings, which advise interested parties of certain factors that affect the Company's business. Risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward looking statements include, but are not limited to, the following: decreases in business from or the loss of any of our key customers; financial instability experienced by our customers; loss or inability to renew certain licenses; use of foreign suppliers to manufacture our products; failure to deliver quality products in a timely manner; chargebacks and margin support payments; challenges integrating businesses we have or may acquire; unanticipated results from the resolution of tax matters; our dispute with Mr. Kuttner and the impact of his ownership of our common stock; investigations by government agencies and other potential litigation; material weaknesses in our internal controls; potential future restatements of our financial statements; and loss of certain key personnel.