G-III Apparel Group, Ltd. fourth quarter net sales increased 43.0% to $98.8 million from $69.1 million during the same period last year. The Company reported net income of $518,000, or three cents per diluted share, for the three-month period, compared to a net loss of $2.8 million, or 23 cents per share, during the same period last year.

Morris Goldfarb, Chairman and Chief Executive Officer, said, “Fiscal 2007 was the strongest year in our history. We grew our revenues, increased our profitability, expanded our business into new categories and added new talent to our management team. We are well positioned to continue this success as we look to the years ahead.”

Mr. Goldfarb concluded, “We expect the recent successful completion of our public offering, which yielded approximately $30.0 million of net proceeds to us, will help us to pursue new opportunities to create value for our shareholders. We intend to proceed purposefully and thoughtfully to further diversify our business into an all-season, all-category apparel company capable of serving every tier of distribution.”

For the twelve-month period ended January 31, 2007, net sales increased by 31.7% to $427.0 million from $324.1 million last year. The Company reported net income of $13.2 million, or $0.94 per diluted share, for the twelve months ended January 31, 2007, compared to net income of $7.1 million, or $0.58 per diluted share, last year. In computing net income per diluted share, there were 13,982,000 weighted average shares outstanding in the current year compared to 12,236,000 weighted average shares outstanding last year.

The current year's results include the reversal of tax reserves of approximately $950,000, or $0.07 per diluted share, as a result of the conclusion of a tax audit.

For the twelve-month period ended January 31, 2007, EBITDA increased 60.7% to $32.3 million from $20.1 million. EBITDA results should be evaluated in light of the Company's financial results prepared in accordance with GAAP. A reconciliation of EBITDA to net income in accordance with GAAP is included in a table accompanying the condensed financial statements in this release.

The Company's results of operations for the twelve months ended January 31, 2006 include the results of the Company's Marvin Richards and Winlit divisions from July 11, 2005, the date the Company acquired the stock of Marvin Richards and certain assets from Winlit. Accordingly, the Company's full year results for the prior year excluded the seasonal losses of the acquired companies in the first half of the year, as well as the higher interest expenses and depreciation and amortization costs in the current year relating to the acquisitions.

The Company is forecasting net sales of approximately $28 million for its first fiscal quarter ending April 30, 2007 compared to $14.4 million in last year's first fiscal quarter. The Company is also forecasting a net loss of $7.7 million to $8.4 million, or between $0.51 and $0.56 per share, compared to a net loss of $8.9 million, or $0.72 per share, in last year's first fiscal quarter. The first quarter historically results in seasonal losses.

              G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
                            (NASDAQ:GIII - News)
                CONSOLIDATED STATEMENTS OF OPERATIONS
          (in thousands, except share and per share amounts)
                             (Unaudited)

                        Three Months Ended       Twelve Months Ended
                       1/31/07      1/31/06     1/31/07     1/31/06
                     ------------ ------------ ----------- -----------
Net sales                $98,842      $69,131    $427,017    $324,072
Cost of sales             73,151       53,067     311,470     239,226
                     ------------ ------------ ----------- -----------
Gross profit              25,691       16,064     115,547      84,846
Selling, general and
 administrative           21,791       17,782      83,258      64,763
  expenses
Depreciation and
 amortization              1,131        1,066       4,431       3,125
                     ------------ ------------ ----------- -----------
Operating profit
 (loss)                    2,769       (2,784)     27,858      16,958
Interest and
 financing charges,
 net                       1,789        1,578       6,362       4,349
                     ------------ ------------ ----------- -----------
Income (loss) before
 income taxes                980       (4,362)     21,496      12,609
Income tax expense
 (benefit)                   462       (1,611)      8,307       5,517
                     ------------ ------------ ----------- -----------
Net income (loss)         $  518      $(2,751)    $13,189    $  7,092
                     ============ ============ =========== ===========
Income (loss) per
 common share:
   Basic                  $ 0.04      $ (0.23)    $  1.00    $   0.62
                     ============ ============ =========== ===========
   Diluted                $ 0.03      $ (0.23)    $  0.94    $   0.58
                     ============ ============ =========== ===========

Weighted average
 shares outstanding:
    Basic             14,093,000   12,112,000  13,199,000  11,509,000
    Diluted           14,954,000   12,112,000  13,982,000  12,236,000