Everlast Worldwide reported net sales were $14.1 million, representing an increase of $1.7 million, or 14% over the 2003 corresponding period. Net licensing revenues increased 26% to $2.1 million. Combined, net revenues were $16.2 million representing an increase of 16%, or $2.2 million over the 2003 period. For the quarter, the Company achieved operating income of $1 million, an increase of 131%, while EBITDA increased to $1.4 million, representing a 77% increase over the 2003 comparable period. Net income available to common stockholders was $188,000, $0.06 per basic share, as compared to $16,000, $0.01 per basic share, in 2003.

“As you can see from these first quarter results, our balance sheet and results of operations are displaying the benefits from the initiatives we took in 2003 and early 2004, which include the Bronx, New York facility closure, the preferred stock redemption refinance, the signing of new and exciting licensing deals, along with the progress of our brand building strategy which facilitated our strong operating results and double digit increases in sales of our apparel and sporting goods businesses,” said George Q Horowitz, Chairman and Chief Executive of Everlast Worldwide Inc.

Mr. Horowitz concluded, “After reporting very solid first quarter 2004 results, I am optimistic about the remainder of 2004. I expect revenues for our licensing and apparel businesses to continue to grow and that our company will continue to benefit from the cost containment initiatives resulting from our sporting goods manufacturing facility consolidation. We will remain focused on developing new merchandising and marketing strategies to further increase brand awareness.”

                   EVERLAST WORLDWIDE INC. & SUBSIDIARIES


                    CONSOLIDATED STATEMENTS OF OPERATIONS


                                                       Three Months Ended

                                                            March 31,

                                                       2004           2003

                                                 (Unaudited)    (Unaudited)


  Net sales                                     $14,095,093    $12,355,283

  Net license revenues                            2,076,217      1,648,838

  Net revenues                                   16,171,310     14,004,121


  Cost of goods sold                             10,698,362      8,920,042


  Gross profit                                    5,472,948      5,084,079


  Operating expenses:

      Selling and shipping                        2,506,547      3,036,444

      General and administrative                  1,737,641      1,386,864

      Amortization                                  228,168        228,168

                                                  4,472,356      4,651,476


  Income from operations                          1,000,592        432,603


  Other income (expense):

    Interest and financing costs                   (393,732)      (236,912)

    Interest expense on redeemable

     participating preferred stock                 (150,112)            --

    Investment income                                 4,284         12,347

                                                   (539,434)      (224,565)


  Income before provision for income                461,032        208,038

   taxes


  Provision for income taxes                        273,337        175,360


  Net income                                       $187,695        $32,678


  Redeemable preferred stock dividend                    --         17,100


  Net income available to common

   stockholders                                    $187,695        $15,578


  Basic earnings per share                            $0.06          $0.01


  Supplementary Information:

  EBITDA (Earnings before interest,

   taxes, depreciation and amortization)         $1,419,391       $803,358