The staff of the U.S. Securities and Exchange Commission has terminated the portion of its investigation relating to Carlos Alberini, President and Chief Operating Officer of Guess?, Inc., in connection with Mr. Alberini’s service at his previous employer, Footstar, Inc. where he was SVP & CFO. The staff of the SEC has notified Mr. Alberini that it will not recommend any enforcement action against him.

The SEC inquiry, which was not directed to Guess?, Inc. or any other member of our management, was initially disclosed by Guess?, Inc. in February 2006.