Kellwood Company introduced first quarter and fiscal 2006 net sales and earnings guidance.

The Company also
provided guidance for the impact of stock option expense on its fiscal 2006 results, as required by FASB
123R.

Net sales from ongoing operations in fiscal year 2006 are expected to approximate $2.0 billion, versus
$2.07 billion from ongoing operations forecasted for fiscal year 2005. On a segment basis, sales are
expected to be as follows:

Men’s Sportswear sales are planned to remain in the range of $505 million.

Other Soft Goods sales are planned to increase by approximately $5 million, or 2% to $320
million, versus $315 million in fiscal year 2005 from ongoing operations as a result of growth
from Gerber Childrenswear and American Recreation Products.

Women’s Sportswear sales are expected to decrease by approximately $75 million, or 6% to
$1,175 million, versus $1,250 million forecasted for fiscal year 2005 from ongoing operations.

The principal reasons for the year-to-year planned decrease include the anticipated fallout from
the recent consolidations at retail, and a planned reduction in sales of off price merchandise.

Net earnings for the fiscal 2006 year are planned to approximate fiscal 2005 net earnings of $44 million.

Earnings per diluted share, however, are expected to increase by 4.3% from $1.63 per diluted share from
ongoing operations forecasted for fiscal year 2005 to $1.70 per diluted share in 2006 due to having
fewer shares outstanding. The average number of diluted shares outstanding is expected to drop by
approximately one million shares to 26.0 million in fiscal year 2006 versus 27.1 million shares in 2005
as the result of the stock buyback program initiated in 2005. Included in this earnings guidance for
2006 is approximately $4.3 million before tax, $2.8 million after tax or $0.11 per diluted share of stock
option expense, as called for under the new accounting requirements. Approximately $1.8 million of
expense before tax will be booked in the first quarter with approximately $0.8 million recorded in each of
the three remaining quarters.

Operating earnings in fiscal year 2006
before expensing stock options are planned to increase by approximately $5 million to $104 million, or
5.2% of sales versus $99 million, or 4.8% of sales from ongoing operations in fiscal year
2005. The year-to-year improvement is expected to come from an increase in gross profit as a percent of
sales. The Company expects to see meaningful year-to-year improvement in gross and operating margins
beginning in the second half. Selling, general and administrative expense levels in fiscal year 2006
should be in the range of $350 million.

Non-operating expenses including amortization of intangibles ($10.0 million) net interest expense ($23.5
million) and other income of ($1.0) million in fiscal year 2006 should remain in the same range as
incurred in fiscal year 2005. The effective tax rate in fiscal year 2006 is expected to increase by two
percentage points to 34 percent versus 32 percent in fiscal year 2005 due to a change in the mix of
foreign versus domestically generated income. Capital expenditures and depreciation expense are each
planned to be in the range of $30 million, essentially the same as in fiscal year 2005.

The Company also noted that because of the seasonality and lead-time associated with the apparel
business, the benefit from the personnel and process changes implemented to enhance the retail
performance of a select number of its consumer lifestyle brands is not expected to be manifested in the
financial performance of the company until the second half. Additionally, the lost volume resulting from
consolidations at retail will have a greater negative impact on Kellwood’s results in the first half.
Therefore, sales in the first half of fiscal year 2006 are expected to approximate $960 million versus
$1,042 million from ongoing operations in the first half of fiscal year 2005. Sales in the second half of
fiscal year 2006 are planned to increase by approximately $12 million to $1,040 million, versus $1,028
million from ongoing operations forecasted for the second half of fiscal year 2005.

Most of the year-to-year decrease in sales for the first half will likely occur in the first quarter. First
quarter sales in fiscal year 2006 are planned at $485 million, versus $554 million in fiscal year 2005
from ongoing operations with the majority of the year-to-year decrease in sales occurring in Women's
Sportswear. The expected drop in sales is due to retailer consolidations, lower sales of off price
merchandise, and the planned exit of certain private label programs.

First quarter fiscal 2006 net earnings are planned at $4.0 million, or $0.15 per diluted shares versus
$15.1 million, or $0.54 per share from ongoing operations in fiscal 2005. The year-to-year expected
decline in net earnings is due to lower sales volume as previously discussed and the expensing of stock
options, which will reduce first quarter pre tax earnings by $1.8 million and after tax earnings by
$1.2 million or $0.05 per diluted share.

Commenting on the announcement, Robert C. Skinner, Jr., president and chief executive officer stated:

“The Kellwood senior management team is wholly focused on substantial improvement in the earnings
and economic value of the company. We continue to progress toward repositioning Kellwood, as a
premiere marketer of lifestyle brands across a broad array of price points. To date, we have sold and or
exited non-core businesses while attracting top industry executives to our team. Additionally, we have
implemented plans to improve the profitability of our ongoing business with better merchandise flow, and
more fashion appropriate styles. This is expected to reduce end of season markdowns and off price sales
beginning in the second half of fiscal 2006, as our product offerings and assortments will better match
the taste levels and lifestyles of consumers. We are also pleased to report the substantial completion of
our restructuring plan and believe we have taken the necessary steps to stabilize the business in order to
set the stage for a turnaround that is expected to result in a significant improvement in operating results.

We were able to execute the restructuring plan in accordance with the time schedule originally established
and the related expenses incurred relative to this restructuring are expected to be at least $20 million
below budget.”