Jones Apparel Group, Inc. Announces 50% Equity Stake in Rachel Roy, Fashion Brand

Enters into Joint Venture Agreement with Rachel Roy, Damon Dash and TSM Capital, LLC

Opportunities to Expand Rachel Roy Brand

NEW YORK, June 12 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc. ("Jones" or the "Company") today announced that it has formed a joint venture with Rachel Roy, Damon Dash and TSM Capital, LLC to develop, market and license the New York-based fashion brand, Rachel Roy. Under the terms of the agreement, Jones owns 50% of the joint venture interest. The remaining interest is owned by the two founders, Rachel Roy and Damon Dash, as well as TSM Capital which acquired a minority stake in the business last November. Jones will assume operations of the existing designer collection business under license with the new joint venture.

Rachel Roy launched her label in spring of 2005. Effortlessly elegant and modern are adjectives that can be used to describe both the collection and the woman, Rachel Roy. With striking silhouettes, a refined color palette and inventive pairings that transition from day to evening, Rachel Roy embodies everything for women who embrace fashion and dress with confidence and sophistication. The line is currently available in premier luxury department and select specialty stores in the United States, including Bergdorf Goodman, Neiman Marcus, Nordstrom and Saks, and internationally in the United Kingdom, Hong Kong, the United Arab Emirates, Kuwait, South Korea, Canada, Turkey and Indonesia.

Wesley R. Card, Jones Apparel Group President and Chief Executive Officer, said, "Rachel Roy is a gifted design talent and represents the new wave of modern fashion. We look forward to working closely with Rachel and Marvin's team as we invest in the Designer business and explore opportunities to broaden her reach to a larger audience. We see tremendous opportunity in Rachel Roy as a designer and brand; we welcome her and her team to Jones."

Marvin Traub, one of TSM's founders, said, "We are pleased with the success of the Rachel Roy brand since investing in the company in November 2007. We believe Rachel is an exciting fashion designer and Jones will be the ideal partner to take the brand to the next level, both domestically and internationally. I am very pleased that we have been able to enter into a joint venture agreement with Jones only six months after completing our initial investment in Rachel Roy. I very much look forward to working with Jones to further develop the Rachel Roy brand."

Founder and artistic director, Rachel Roy, said, "TSM is an excellent partner, and I am excited to be part of a leading American company like Jones, which shares my commitment to quality and innovation. I am excited for the future and to uncover the label's full potential."

Partner, Damon Dash, said, "Both Rachel and her clothing appeal to many audiences around the world, making her a widely renowned design talent. Through this partnership, we will be able to explore new opportunities for Rachel Roy, the brand."

The Company noted that Rachel Roy and her team will work with Susan Metzger, Chief Executive Officer of the Women's Wholesale Sportswear division. Ms. Metzger will be responsible for the operations of the business.

Susan Metzger added, "I am thrilled that Rachel and her team are joining Jones, and I look forward to working directly with them."

The joint venture partners plan to further develop the successful Rachel Roy brand through continued global expansion of the wholesale business, introduction of new product categories, and stand-alone retail stores in key U.S. and international locations. Rachel Roy will continue to lead the design, manufacturing and production of the brand. Additional terms of the transaction were not disclosed.

About Jones Apparel Group, Inc.

Jones Apparel Group, Inc. (http://www.jny.com/) is a leading designer, marketer and wholesaler of branded apparel, footwear and accessories. The Company also markets directly to consumers through its chain of specialty retail and value-based stores. The Company's nationally recognized brands include Jones New York, Nine West, Anne Klein, Gloria Vanderbilt, Kasper, Bandolino, Easy Spirit, Evan-Picone, l.e.i., Energie, Enzo Angiolini, Joan & David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Albert Nipon and Le Suit. The Company also markets costume jewelry under the Givenchy brand licensed from Givenchy Corporation and footwear under the Dockers Women brand licensed from Levi Strauss & Co. Each brand is differentiated by its own distinctive styling, pricing strategy, distribution channel and target consumer. The Company contracts for the manufacture of its products through a worldwide network of quality manufacturers. The Company has capitalized on its nationally known brand names by entering into various licenses for several of its trademarks, including Jones New York, Evan-Picone, Anne Klein New York, Nine West, Gloria Vanderbilt and l.e.i., with select manufacturers of women's and men's products which the Company does not manufacture. For more than 30 years, the Company has built a reputation for excellence in product quality and value, and in operational execution.