Barington Group Acquires Stake in Warnaco; Looks for Change

The Barington Group now collectively holds approximately 5.6% of the common stock of The Warnaco Group, Inc. The Barington Group consists of Barington Capital Group, L.P., Ramius Capital Group, L.L.C. and various other affiliated entities.

In its Schedule 13D filing with the SEC, Barington stated that it believes Warnaco to be undervalued and that it wishes to engage in discussions with the Company’s senior management concerning measures that it believes will improve shareholder value for the benefit of the Company’s stockholders.

In its filing, Barington said such measures include, but are not limited to:

• the improvement in execution by the Company’s senior management team
  and oversight provided by its Board of Directors in light of what
  Barington believes to be a string of recent operating disappointments
  stemming from (a) the recently announced financial restatement caused
  by accounting issues at the Company’s Chaps division and swimwear
  segment, and the resulting Securities and Exchange Commission informal
  inquiry, (b) disruptions and excess costs associated with poor
  implementation of SAP at the Company’s swimwear segment, and (c) missed
  revenue growth and gross margin targets;

• a substantial reduction in equity grants, including stock options and
  restricted stock, which have averaged 5.0% annually or a staggering
  17.6% cumulatively of the Company’s shares outstanding over the past
  three and one-half fiscal years;

• the improvement in gross and EBITDA margins, which currently trail peer
  averages by approximately 800 and 600 basis points, respectively,
  through a reduction in SG&A and corporate expenses and better
  merchandising;

• the disposition of non-core brands and licenses, especially in
  underperforming divisions of the Company’s intimate apparel and
  swimwear segments; and

• the exploration of alternatives, including, without limitation, the
  possible sale of the Company.