Everlast Worldwide Inc. reported net sales declined 4.9% to $16.1 million for the third quarter ended September 30, 2003, compared to $16.9 million in the year-ago period. Net licensing revenues increased 14.8% to $1.6 million vs. $1.4 million in the 2002 period. Net income available to common stockholders was $.1 million, or $0.03 per basic share, compared with $.4 million, or $0.12 per basic share, in 2002.

Pro-forma earnings, excluding certain duplicative costs associated with the Company's Bronx facility that are not expected to impact earnings in 2004, were $.3 million, or $0.10 per basic share as compared to reported $0.12 per basic share in 2002.

Everlast reports its results on a GAAP basis, and also provides pro-forma results excluding the duplicative manufacturing costs associated with its Bronx facility, which will be relocated and consolidated to its Moberly, Missouri facility, as previously announced and outlined on October 31, 2003.

For the quarter, net sales were $16.1 million as compared to $16.9 million reported in 2002. Net licensing revenues advanced 14.8% to $1.6 million vs. $1.4 million in the 2002 period. Net income available to common stockholders
was $.1 million, or $0.03 per basic share, compared with $.4 million, or $0.12 per basic share, in 2002. Pro-forma earnings, excluding certain duplicative costs associated with the Company's Bronx facility that are not expected to
impact earnings in 2004, were $.3 million, or $0.10 per basic share as compared to reported $0.12 per basic share in 2002.

For the nine months ended September 30, 2003, net sales were $41.4 million
as compared to $47.4 million in 2002. During the nine months, net licensing
increased 15.2% to $4.8 million. Net income available to common stockholders
was $.2 million, or $0.07 per basic share, compared with $1.0 million, or
$0.32 per basic share, in 2002. Pro-forma earnings, excluding certain
duplicative costs that impacted the Company during the three months ended
September 30, 2003, associated with the Company's Bronx facility that are not
expected to impact earnings in 2004, were $.4 million, or $0.14 per basic
share.

“While the retail landscape we operate in remains challenging, we continue
to post positive operating results. Our slight decrease in net sales for the
quarter was the result of a customer who became a licensee in 2003. As
previously announced on October 31, 2003, we will relocate and consolidate our
Bronx, NY facility into our Moberly, Missouri facility effective December 31,
2003. During the quarter end, we incurred duplicative manufacturing costs
associated with the Bronx facility. Our results, adjusted for these costs not
expected to be incurred in 2004, were $0.10 per share compared with $0.12 per
share in the prior year period,” said George Q Horowitz, Chairman and Chief
Executive of Everlast Worldwide Inc.

“Looking ahead to 2004, Everlast will emerge as a stronger, more efficient
company. I am optimistic about our projected operating results. We expect to
realize efficiencies from the aforementioned facility relocation during the
first quarter of fiscal 2004 with estimated annual savings of $2.8 million.
We will continue to sign additional licensing agreements, introduce new
products and expand internationally as part of our strategic plan. We have
and will continue to support our growing family of products with unique and
impactful consumer advertising and merchandising efforts. We are now looking
forward to leveraging the strategic progress and brand building initiatives we
have made to deliver strong returns and enhanced value for our shareholders in
2004 and beyond.”



                    EVERLAST WORLDWIDE INC. & SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF INCOME


                              Three Months Ended         Nine Months Ended
                                 September 30,             September 30,
                               2003         2002         2003        2002
                            (Unaudited)  (Unaudited)  (Unaudited) (Unaudited)

    Net sales              $16,075,363  $16,905,001  $41,369,708  $47,365,508

    Cost of goods sold      12,042,771   11,580,971   30,349,610   32,185,853

    Gross profit             4,032,592    5,324,030   11,020,098   15,179,655

    Net license revenues     1,592,237    1,387,712    4,827,488    4,191,329
                             5,624,829    6,711,742   15,847,586   19,370,984
    Operating expenses:
        Selling and shipping 3,235,446    3,373,159    9,067,557    9,255,200
        General and
         administrative      1,482,815    1,384,253    4,420,156    4,465,518
        Amortization           228,168      228,168      684,504      684,504
                             4,946,429    4,985,580   14,172,217   14,405,222

    Income from operations     678,400    1,726,162    1,675,369    4,965,762

    Other income (expense):
      Interest expense        (242,739)    (203,542)    (717,948)    (523,122)
      Interest expense on
       redeemable
       participating
       preferred stock        (112,440)          --     (112,440)          --
      Investment income         14,382       23,217       42,391       36,875
                              (340,797)    (180,325)    (787,997)    (486,247)

    Income before provision
     for income taxes          337,603    1,545,837      887,372    4,479,515

    Provision for income
     taxes                     233,395      633,780      519,220    2,034,214

    Net income                $104,208     $912,057     $368,152   $2,445,301

    Redeemable preferred
     stock dividend                 --      540,477      136,805    1,449,062

    Net income available to
     common stockholders      $104,208     $371,580     $231,347     $996,239

    Basic earnings per share     $0.03        $0.12        $0.07        $0.32