Iconix Brand Group, Inc. said revenue for the full year ended Dec. 31. 2008 increased 35.5% to approximately $216.8 million, as compared to approximately $160.0 million in the prior year.

EBITDA for 2008 increased 17.2% to approximately $149.6 million as compared to approximately $127.6 million in the prior year, and free cash flow increased 22.2% to approximately $122.1 million as compared to approximately $99.9 million in the prior year.
Net income for 2008 increased 10.0% to approximately $70.2 million, as compared to approximately $63.8 million in the prior year and GAAP diluted earnings per share increased to $1.15 versus $1.04 in the prior year.

Q4 2008 results:

Revenue for the fourth quarter of 2008 increased 14.4% to approximately $54.3 million, as compared to approximately $47.4 million in the fourth quarter of 2007.

EBITDA for the fourth quarter decreased 10.4% to approximately $37.8 million as compared to approximately $42.2 million in the prior year quarter. However, in the fourth quarter of 2007, the company recorded a one-time pre-tax gain with an adjustment equal to approximately $7.1 million associated with the company's Unzipped litigation.
Therefore, excluding the one-time gain with an adjustment, EBITDA for the fourth quarter increased 7.7% to approximately $37.8 million as compared to approximately $35.1 million in the prior year quarter. Free cash flow for the quarter increased 17.9% to approximately $31.0 million as compared to approximately $26.3 million in the prior year quarter.
Net income for the fourth quarter decreased 10.9% to approximately $17.1 million, as compared to $19.2 million in the prior year quarter. However, excluding the 2007 one-time gain related to the litigation, net income in the fourth quarter of 2008 increased 3.6% to approximately $17.1 million, as compared to $16.5 million the prior year quarter. GAAP diluted earnings per share for the fourth quarter of 2008 was 28 cents versus 31 cents in the prior year quarter.
However, the fourth quarter 2007 results included the one-time gain of 4 cents diluted earnings per share related to the Unzipped litigation. Therefore, excluding the gain, diluted earnings per share for the fourth quarter of 2008 was 28 cents versus 27 cents in the prior year quarter. EBITDA and free cash flow are non-GAAP metrics and reconciliation tables for both are attached to this press release.

2009 Guidance:

The company is re-affirming its full year 2009 EPS guidance of diluted EPS between $1.20 and $1.30 excluding the change in accounting policy related to convertible debt and between $1.06 and $1.16 including the non-cash interest related to the new accounting policy for convertible debt.

The company is now projecting its 2009 revenue to be in a range of $210.0 to $220.0 million. The Company estimates that free cash flow for 2009 will be approximately $120.0 million. This guidance relates to the existing portfolio of brands only and assumes no acquisitions.
            Iconix Brand Group, Inc. and Subsidiaries

    Condensed Consolidated Income Statements
    (in thousands, except earnings per share data)

                               (Unaudited)
                               -----------
                            Three Months Ended            Year Ended
                                 Dec. 31,                  Dec. 31,
                                ---------            -------------------
                               2008        2007        2008       2007
                           --------------------      -------------------
    Licensing and other
     revenue                $54,259     $47,411     $216,761   $160,004

    Selling, general and
     administrative
     expenses                18,227      14,124       73,816     44,254
    Expenses related to
     specific litigation        228      (7,094)         893     (6,039)
                            --------------------------------------------
    Operating income         35,804      40,381      142,052    121,789

      Other expenses - net    8,948      11,258       33,126     25,512
                            --------------------------------------------
    Income before income
     taxes                   26,856      29,123      108,926     96,277
                            --------------------------------------------
    Provision for income
     taxes                    9,720       9,897       38,773     32,522
                            --------------------------------------------
    Net income              $17,136     $19,226      $70,153    $63,755
                            ============================================


    Earnings per share:
                Basic         $0.30       $0.34        $1.21      $1.12
                            ============================================
                Diluted       $0.28       $0.31        $1.15      $1.04
                            ============================================

    Weighted average
     number of common
     shares outstanding:
                Basic        58,174      57,067       57,810     56,694
                            ============================================
                Diluted      61,332      61,749       61,248     61,426
                            ============================================


    Selected Balance Sheet Items:        12/31/2008   12/31/2007
                                                       (Audited)
    Total Assets                         $1,420,259   $1,336,130
    Total Liabilities                      $806,733     $808,210
    Stockholders' Equity                   $613,526     $527,920