American Apparel recorded second quarter sales of $95.6 million, a 35% increase over sales of $71.0 million for the same period last year. Retail sales increased 51% to $52.6 million for the second quarter of 2007 as compared to $34.9 million for the same period in 2006, with same-store sales for stores open at least 12 months rising 24%. At June 30, 2007, American Apparel had 156 stores as compared to 131 stores at June 30, 2006. Wholesale results were $43.0 million for the 2007 second quarter as compared to $36.3 million for the 2006 second quarter, an increase of 19%.

Pro Forma Adjusted EBITDA and certain adjustments and exclusions equaled $18.0 million for the second quarter ended June 30, 2007. This represents a 70% increase over pro forma adjusted EBITDA of $10.6 million for the three months ended June 30, 2006. The non-cash and other adjustment items in the quarterly comparisons per the acquisition agreement include deferred rent, litigation/legal expenses and business combination expenses not capitalized. These adjustments totaled approximately $1.3 million for the three months ended June 30, 2007 as compared to approximately $1.0 million for the three months ended June 30, 2006.

Dov Charney, Chief Executive Officer of American Apparel stated: “After reviewing the financial results for the first half of 2007, I am very excited about the growth that the company has experienced so far this year. Despite a challenging retail environment, the second quarter was the most successful period in American Apparel's history. We are pleased that our product offering has appealed to so many customers and we are eager to introduce the vibrant, emerging brand we have developed to metropolitan adults around the world. In the months ahead, we look forward to building upon the strong financial performance of the first half of 2007.”

“The fortuitous timing of our refinancing this past July is providing us with the liquidity to continue to enhance the value of the American Apparel business, while we work patiently towards closing the merger with Endeavor,” added Adrian Kowalewski, American Apparel's Director of Corporate Finance and Development.

For the six month period ended June 30, 2007, American Apparel reported combined sales of $169.1 million. This was a 30% increase over sales of $130.4 million for the six month period ended June 30, 2006. American Apparel’s retail sales for the first two quarters of 2007 were $90.8 million, an increase of 55% over the $58.7 million of sales in the comparable period for 2006. Wholesale sales for the six month period ended June 30, 2007 was $78.3 million, a 9% increase over the $71.8 million for the six months ended June 30, 2006.

Pro Forma Adjusted EBITDA equaled $27.6 million for the six months ended June 30, 2007. This represents a 68% increase over pro forma adjusted EBITDA of $16.4 million for the six months ended June 30, 2006. The non-cash and other adjustment items in the quarterly comparisons per the acquisition agreement include deferred rent, litigation/legal expenses and business combination expenses not capitalized. These adjustments totaled approximately $1.7 million for the six months ended June 30, 2007 as compared to approximately $2.1 million for the six months ended June 30, 2006.