Mossimo Q1 Revenues Fall 43.7% on Target Rebate

Mossimo, Inc., in connection with its negotiations with Iconix Brand Group, Inc., has amended and restated its license agreement with Target to extend the term through January 31, 2010 and transferred certain expenses associated with the license to Target. In exchange, Target received a one time non-refundable rebate of $6 million in royalties earned to date for contract year 2006 and a reduction of 40 basis points in the royalties for contract years 2007 and beyond. The company may charge Target for certain expenses incurred in contract year 2006, up to the amount of the rebate.

Mossimo, Inc. reported first quarter 2006 total net revenues of $4.9 million, down 43.7% from $8.7 million for the same period last year. The company reported a first quarter net loss of $1.17 million, which included a non-recurring charge of $6 million, compared to net earnings of $1.8 million for the same period last year. Including the charge, first quarter 2006 diluted loss per share was 7 cents compared to diluted earnings per share of 12 cents for the same period last year.

Edwin Lewis, President and Co-Chief Executive Officer stated, “We were pleased with the pace of our business during the quarter, as we registered meaningful gains in our both men's and women's business at Target. With regard to Modern Amusement, we experienced better full-price selling compared to a year ago, and while there is still work to be done, we are encouraged by our recent progress.”

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

                                               For the Three Months
                                                    March 31,
                                            --------------------------
                                                2006          2005
                                            ------------  ------------

Revenue from license royalties and design
 service fees                               $     2,561   $     7,354

Product sales                                     2,378         1,310
                                            ------------  ------------

Total revenues                                    4,939         8,664

Operating expenses:
Cost of product sales                             1,297         1,038
Selling, general and administrative               5,778         4,575
                                            ------------  ------------
Total operating expenses                          7,075         5,613
                                            ------------  ------------

Operating earnings (loss)                        (2,136)        3,051

Interest income                                     194            30
                                            ------------  ------------
Earnings (loss) before income taxes              (1,942)        3,081

Income taxes                                       (768)        1,260
                                            ------------  ------------

Net earnings (loss)                         $    (1,174)  $     1,821
                                            ============  ============

Net earnings (loss) per common share:
Basic                                       $     (0.07)  $      0.12
                                            ============  ============
Diluted                                     $     (0.07)  $      0.12
                                            ============  ============
Weighted average common shares outstanding:
Basic                                            15,889        15,738
                                            ============  ============
Diluted                                          15,889        15,757
                                            ============  ============