Mossimo Reports 45% Q2 Sales Increase

Mossimo, Inc. reported second quarter 2005 total net revenues increased 45.2% to $9.0 million compared to $6.2 million for the second quarter of last year. The company reported second quarter net earnings of $2.2 million compared to net earnings of $1.0 million for the same period last year, and diluted earnings per share of 14 cents compared to diluted earnings per share of 6 cents for the same period last year.

Net revenues for the six months ended June 30, 2005 were $17.7 million compared to $12.4 million in the same period last year. The company reported net earnings for the first six months of 2005 of $4.0 million compare to net earnings of $2.2 million in the corresponding period a year ago, and diluted earnings per share of 26 cents compared to diluted earnings per share of 14 cents for the same period last year.

Edwin Lewis, president and co-chief executive officer stated, “Our second quarter results were driven by the growth of the Mossimo brand at Target, in particular, our women's black label and red label, women's shoes, men's wovens and bottoms all performed well. At the same time, revenues at Zellers were flat year-over-year as we continue to experience merchandising issues in the Canadian marketplace. With regard to Modern Amusement, our margins were impacted by higher off price sales and the write down of slower moving inventory.”

                            MOSSIMO, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                 (IN THOUSANDS, EXCEPT PER SHARE DATA)
                              (Unaudited)

                             For the Three Months  For the Six Months
                                   June 30,             June 30,
                             -------------------- --------------------
                               2005       2004      2005       2004
                             ---------  --------- ---------  ---------

Revenue from license
 royalties and design
 service fees                  $8,113     $5,784   $15,467    $11,994

Product sales                     932        424     2,242        450
                             ---------  --------- ---------  ---------

Total revenues                  9,045      6,208    17,709     12,444

Operating expenses:
  Cost of product sales           695        211     1,734        224
  Selling, general and
   administrative               5,353      4,330     9,928      8,543
                             ---------  --------- ---------  ---------
    Total operating expenses    6,048      4,541    11,662      8,767
                             ---------  --------- ---------  ---------

Earnings from operations        2,997      1,667     6,047      3,677

Other income - Interest
 income                            79         20       110         47
                             ---------  --------- ---------  ---------
Earnings before income taxes    3,076      1,687     6,157      3,724

Income taxes                      848        680     2,108      1,527
                             ---------  --------- ---------  ---------

Net earnings                   $2,228     $1,007    $4,049     $2,197
                             =========  ========= =========  =========

Earnings per common share:
  Basic                         $0.14      $0.06     $0.26      $0.14
                             =========  ========= =========  =========
  Diluted                       $0.14      $0.06     $0.26      $0.14
                             =========  ========= =========  =========