Iconix Brand Group Inc. reached an agreement to buy Pillowtex LLL for
$231 million to diversify outside of the world of fashion. Pillowtex
marks Iconix's largest acquisition to date, topping the $204 million it
paid earlier this year for Rocawear.  The purchase price may
additional payments of up to $15 million in cash based upon the brands
surpassing specific revenue targets.

Pillowtex owns a large portfolio of home furnishings brands. Its top
four primary brands, Cannon, Royal Velvet, Fieldcrest and Charisma, are
estimated to generate between $35 and $37 million in 2008 royalty
revenue with direct expenses of between $5 and $7 million. Total
aggregate guaranteed royalty revenue for the brands equals
approximately $160 million, or approximately 65% of the purchase price.

Iconix, which owns more than 10 brands and holds more than 145
licenses, acquired six brands in the last year. Its roster includes
Candie's, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog,
Mossimo, Ocean Pacific and Danskin.
The cash deal is expected to close later this year following regulatory
review, and is also expected to be accretive to earnings.