Everlast, for the nine months ended September 30, 2004, net revenues were $46.5
million as compared to $46.2 million in 2003. During the nine months, net
licensing increased 44% to $7.0 million. Net income available to common
stockholders was $.02 million, or $0.01 per basic share, compared with $0.2
million, or $0.07 per basic share, in 2003.

For the third quarter and corresponding 2003 period, net revenues were
$15.8 million as compared to $17.7 million reported in 2003. Net licensing
revenues advanced 55.5% to $2.5 million vs. $1.6 million in the 2003 period.
Net loss available to common stockholders was ($0.2) million, or ($0.08) per
basic share, compared with net income of $0.1 million, or $0.03 per basic
share, in 2003.

“The execution of our brand building strategy has resulted in 2004 year to
date record net licensing revenues of $7 million. I expect our 2004 full year
net licensing revenues to exceed $9 million which will be at least a 40%
increase over 2003 reported net licensing revenues. Since we acquired Everlast
fours year ago, we have grown our licensing revenues 300%. I am optimistic
about our fourth quarter and 2004 full year operating results where we are
projecting net revenues of $67 million along with projected EBITDA (earnings
before interest, taxes, depreciation and amortization) of $4 million which is
a $2.5 million improvement over 2003 reported EBITDA. The remainder of 2004
and into 2005 we will benefit from the strategic licensing and business
alliance we entered into with Contender Partners, LLC, (a venture between
DreamWorks LLC and Mark Burnett Productions) previously announced last
quarter, resulting in a merchandising agreement with Footlocker for a
“Contender” hang-tag line of Everlast sports apparel, shoes and equipment that
began shipping in October 2004,” said George Q Horowitz, Chairman and Chief
Executive of Everlast Worldwide Inc.

Mr. Horowitz concluded, “During the third quarter our net sales were
unfavorably impacted by regional truck shortages and west coast port problems
limiting our ability to ship outstanding orders existing within our backlog.
In addition, certain merger integration issues affecting our larger customers
resulted in delays in placing forecasted third quarter orders that are now
being shipped in the fourth quarter. Our September 30, 2004 inventory levels
reflect our current sales backlog and fourth quarter sales orders expected to
be booked and shipped within the quarter. Moreover, our results of operations
during the third quarter were impacted by higher promotion and advertising
costs associated with the launch of our new Heritage collection which will be
showcased on The Contender reality television show premiering in January 2005
on NBC, as well as higher logistical and warehousing costs associated with
higher freight costs due to increases in fuel.”

                    EVERLAST WORLDWIDE INC. & SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF OPERATION


                              Three Months Ended         Nine Months Ended

                                 September 30,             September 30,

                                  2004         2003         2004        2003

                            (Unaudited)  (Unaudited)  (Unaudited) (Unaudited)


    Net sales              $13,329,565  $16,075,363  $39,519,037 $41,369,708


    Net license revenues     2,474,691    1,592,237    6,952,151   4,827,488

    Net revenues            15,804,256   17,667,600   46,471,188  46,197,196

    Cost of goods sold      10,982,830   12,042,771   30,275,822  30,349,610

    Gross profit             4,821,426    5,624,829   16,195,366  15,847,586


    Operating expenses:

        Selling and shipping 3,256,688    3,235,446    9,008,897  9,067,5578

        General and

         administrative      1,817,460    1,482,815    5,270,711   4,420,156

        Amortization           228,168      228,168      684,504     684,504

                             5,302,316    4,946,429   14,964,112  14,172,217


    (Loss) income from

     operations               (480,890)     678,400    1,231,254   1,675,369


    Other income (expense):

      Interest expense and

       financing costs        (403,211)    (242,739)  (1,178,492)   (717,948)

      Interest income

       (expense) on redeemable

       participating

       preferred stock         199,724     (112,440)     (13,935)   (112,440)

      Investment income          4,119       14,382       12,550      42,391

                              (199,368)    (340,797)  (1,179,877)   (787,997)


    (Loss) income before

     (benefit) provision

     for income taxes         (680,258)     337,603       51,377     887,372


    (Benefit) provision for

     income taxes             (430,659)     233,395       33,962     519,220


    Net (loss) income        ($249,599)    $104,208      $17,415    $368,152


    Redeemable preferred

     stock dividend                  -            -            -     136,805


    Net (loss) income

     available to common

     stockholders            ($249,599)    $104,208      $17,415    $231,347


    Basic (loss) earnings

     per share                  ($0.08)       $0.03        $0.01       $0.07


    Supplementary

     Information:

    EBITDA (Earnings before

     interest, taxes,

     depreciation and

     amortization)           ($110,666)  $1,069,628   $2,326,643  $2,830,675