Iconix Brand Group reported revenues of $96.9 million in the third quarter, a 63% increase over the prior year quarter. Earnings increased 34% to
approximately $27.4 million, or 37 cents a share.

Non-GAAP net income increased 32% to $29.8 million, 40 cents a share.

EBITDA attributable to Iconix for the third quarter was approximately $52.1 million, a 21% increase as compared to the prior year quarter. Free cash flow for the quarter was approximately $36.7 million.

On a non-GAAP basis, which excludes non-cash interest related to the company's convertible debt, net income attributable to Iconix increased 32% to approximately $29.8 million and diluted earnings per share, or EPS, for the third quarter of 2010 was $0.40 versus $0.31 for the prior year quarter.

Third quarter 2010 financials include approximately $12.5 million of revenue or approximately $0.02 of diluted EPS related to the new contract the company signed with ABC for the Peanuts specials.

Nine months ended September 30, 2010

Total revenue for the nine months ended September 30, 2010 was approximately $244.6 million, a 47% increase as compared to approximately $166.3 million for the prior year period. EBITDA attributable to Iconix for the nine month period was approximately $150.9 million, a 25% increase as compared to the prior year period, and free cash flow was approximately $121.1 million, a 19% increase as compared to the prior year period. On a non-GAAP basis, as defined above, net income attributable to Iconix for the nine month period increased 36% to approximately $83.3 million as compared to the prior year period and non-GAAP diluted earnings per share increased to $1.12 versus $0.93 for the prior year period. On a GAAP basis, net income attributable to Iconix increased 39% to approximately $76.7 million as compared to the prior year period and GAAP diluted earnings per share was $1.03 versus $0.83 for the prior year period.

EBITDA, free cash flow, non-GAAP net income and non-GAAP EPS are all non-GAAP metrics and reconciliation tables for each are attached to this press release.

Neil Cole, chairman and CEO of Iconix Brand Group, Inc. commented, “2010, thus far has been an exciting year for our company as we delivered another record quarter in terms of both revenue and earnings to our shareholders. With 27 brands today that represent approximately $12 billion in annual global retail sales, we are the second largest consumer products licensing company in the world, and we remain committed to expanding and growing our portfolio of iconic brands through new categories, geographies and distributions. As we look ahead to 2011, we feel confident about the overall strength of our existing brand portfolio and our ability to acquire world class brands.”

2010 Guidance for Iconix Brand Group, Inc:

The company is raising its full year 2010 revenue guidance to $323-$328 million from $305-$315 million, its 2010 non-GAAP diluted EPS guidance to $1.38-$1.42 from $1.35-$1.40, and its GAAP diluted EPS guidance to $1.26-$1.30 from $1.23-$1.28. The Company expects to continue to generate strong free cash flow for 2010 of approximately $150- $155 million. This guidance relates to the existing portfolio of brands only and does not include any additional acquisitions.

The 2010 revenue revision is primarily related to the ABC contract in addition to the company's positive performance in the third quarter. The 2010 earnings revision is primarily related to the company's strong third quarter results, as the EPS benefit this quarter from the ABC contract will be offset on a full year basis as a result of estimated Peanuts restructuring costs to be incurred in the fourth quarter of 2010.

2011 Guidance for Iconix Brand Group, Inc:

The company is providing 2011 revenue guidance of $340-350 million, 2011 non-GAAP diluted EPS guidance of $1.53-$1.58 and GAAP diluted EPS guidance of $1.40-$1.45. The Company estimates that free cash flow for 2011 will be approximately $160-165 million. This guidance relates to the existing portfolio of brands only and does not include any additional acquisitions.

Iconix Brand Group owns, licenses and markets the following brands: Candie's, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific, Danskin, Roca Wear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter and Waverly . In addition, Iconix Owns An Interest In The Artful Dodger, Ed Hardy, Ecko, Marc Ecko, Zoo York, Material Girl and Peanuts Brands.

 Condensed Consolidated Income Statements

(in thousands, except earnings per share data)

(Unaudited)

(Unaudited)

Three Months Ended Sept. 30,

Nine Months Ended Sept. 30,

2010

2009

2010

2009

Licensing and other revenue

$ 96,887

$59,367

$ 244,604

$ 166,276

Selling, general and administrative expenses

42,032

21,023

90,719

54,661

Expenses related to specific litigation

33

–

240

137

Operating income

54,822

38,344

153,645

111,478

Interest expense, net

9,763

9,021

29,686

28,395

Equity earnings on joint ventures

(25)

(2,559)

(2,242)

(3,366)

Other expenses �€“ net

9,738

6,462

27,444

25,029

Income before income taxes

45,084

31,882

126,201

86,449

Provision for income taxes

13,252

11,428

40,042

31,055

Net income

$ 31,832

$ 20,454

$ 86,159

$ 55,394

Net income attributable to non-controlling interest

4,423

–

9,435

–

Net income attributable to Iconix Brand Group, Inc.

$27,409

$ 20,454

$ 76,724

$ 55,394

Earnings per share:

Basic

$  0.38

$  0.29

$  1.07

$  0.87

Diluted

$  0.37

$  0.28

$  1.03

$  0.83

Weighted average number of common shares outstanding:

Basic

72,326

71,336

72,013

63,850

Diluted

74,920

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