Mossimo Doubles Q4 Revenues; Earnings Take a Dive

Mossimo, Inc. reported fourth quarter 2005 total net revenues increased to $6.5 million compared to $3.2 million for the same period last year. MOSS reported net earnings of $15,000 for Q4 compared to net earnings of $629,000 for the same period last year, and diluted earnings per share of $0.00 compared to diluted earnings per share of four cents for the same period last year.

Total revenues for the fiscal year ended December 31, 2005 were $31.0 million compared to $20.5 million in the same period last year. The company reported net earnings for fiscal 2005 of $4.7 million compared to net earnings of $2.7 million in the corresponding period a year ago, and diluted earnings per share of $0.30 compared to diluted earnings per share of $0.17 for the same period last year.

Edwin Lewis, President and Co-Chief Executive Officer stated, “We are pleased with our fiscal 2005 results, which were driven primarily by increased sales at Target and improvements at Modern Amusement.”

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

                                      For the Three    For the Years
                                      Months Ended        Ended
                                      December 31,     December 31,
                                     --------------- -----------------
                                       2005    2004     2005     2004
                                     ------- ------- -------- --------

Revenue from license royalties and
 design service fees                 $4,593  $2,533  $24,298  $18,714

Product sales                         1,955     624    6,730    1,821
                                     ------- ------- -------- --------

Total revenues                        6,548   3,157   31,028   20,535

Operating expenses:
Cost of product sales                 1,056     352    3,993    1,241
Selling, general and administrative
 expenses                             5,431   1,897   20,294   14,843
Goodwill impairment loss                212       -      212        -
                                     ------- ------- -------- --------
Total operating expenses              6,699   2,249   24,499   16,084
                                     ------- ------- -------- --------

Operating earnings (loss)              (151)    908    6,529    4,451

Other expenses, net                       -       -        -      (71)
Interest income                         188      27      420      104
                                     ------- ------- -------- --------
Earnings before income taxes             37     935    6,949    4,484

Income taxes                             22     306    2,248    1,783
                                     ------- ------- -------- --------

Net earnings                         $   15  $  629  $ 4,701  $ 2,701
                                     ======= ======= ======== ========

Earnings per common share:
Basic                                $ 0.00  $ 0.04  $  0.30  $  0.17
                                     ======= ======= ======== ========
Diluted                              $ 0.00  $ 0.04  $  0.30  $  0.17