G-III Sales Fall 3.1% in Fiscal 2005 Second Quarter

For the three-month period ended July 31, 2004, G-III reported net sales of $43.9 million and a net loss of $1.7 million, or 23 cents per share, compared to net sales of $45.3 million and net income of $2.7 million, or 37 cents per diluted share last year.

For the six-month period ended July 31, 2004, G-III reported net sales of $60.4 million and a net loss of $6.5 million, or $0.91 per share, compared to net sales of $64.0 million and net income of $91,000, or $0.01 per diluted share, during the comparable period last year.

The current three and six month periods include a non-cash charge
of $882,000, equal to $0.12 per share, associated with the Company's
decision to attempt to sell its joint venture interest in a factory in
China. The amount of the charge represents the difference between the
Company's current investment of $1.1 million in the joint venture and
the estimated proceeds it would receive on sale of this joint venture
interest.

Mr. Goldfarb, G-III's Chief Executive Officer, said, “The decision
to sell our share of our 39% joint venture interest in our
manufacturing facility in China is primarily due to current losses and
the expectation of continuing losses for the foreseeable future. We
believe this will also provide us with more flexibilty by allowing us
to outsource all of our production. It is our intention to continue to
contract with this facility as a key resource.”

Morris Goldfarb continued, “While our second quarter results
continued to be challenged by a sharp reduction in our higher margin
fashion sports business, they were in line with our plan. Based on
good rates of order growth, a strong consumer appetite for fashion and
positive preliminary feedback with respect to our fall lines, we
believe that we are positioned for a solid second half. While our full
year results will not reach last year's level as a result of the
losses in the first half, we expect to see profit growth in the second
half of the year as compared to last year. Our focus will continue to
be on creating compelling product that offers value to consumers,
executing well, maintaining strong customer relationships, and seeking
new growth opportunities across our portfolio of businesses. We
continue to benefit from a position as one of the world's largest and
highest quality outerwear manufacturers and believe that this will
lead to opportunities for growth, diversification, and value for our
shareholders.”

Also today, G-III Apparel Group issued guidance for the fiscal
year ending January 31, 2005. For the fiscal year, the Company is
forecasting net sales of approximately $215 million and diluted net
income per share between $0.38 and $0.43. This forecast includes the
effects of the previously discussed charge of $882,000, equal to $0.12
per share.

G-III APPAREL GROUP, LTD.
SECOND QUARTER RESULTS OF FISCAL 2005


              G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
          (in thousands, except share and per share amounts)
                              (Unaudited)

                                  Three Months         Six Months
                                      Ended               Ended
                                7/31/04   7/31/03   7/31/04   7/31/03
                                --------  --------  --------  --------
Net sales                       $43,892   $45,299   $60,413   $64,011
Cost of sales                    33,354    29,618    48,113    43,976
                                --------  --------  --------  --------
Gross profit                     10,538    15,681    12,300    20,035
Selling, general and
 administrative expenses         11,707    10,844    21,864    19,603
Write down of equity investment     882                 882
                                --------  --------  --------  --------
Operating profit (loss)          (2,051)    4,837   (10,446)      432
Interest and financing charges,
 net                                197       230       270       278
                                --------  --------  --------  --------
Income (loss) before income
 taxes                           (2,248)    4,607   (10,716)      154

Income tax expense (benefit)       (588)    1,889    (4,229)       63
                                --------  --------  --------  --------
Net income (loss)               $(1,660)   $2,718   $(6,487)      $91
                                ========  ========  ========  ========
Basic net income (loss) per
 common share                    $(0.23)    $0.40    $(0.91)    $0.01
                                ========  ========  ========  ========
Diluted net income (loss) per
 common share                    $(0.23)    $0.37    $(0.91)    $0.01
                                ========  ========  ========  ========
Weighted average shares
 outstanding:
      Basic                   7,162,467 6,879,920 7,140,701 6,877,909
      Diluted                 7,162,467 7,385,396 7,140,701 7,325,347