Mossimo Posts 38.8% Sales Jump During Q3

Mossimo, Inc. reported a 38.8% increase in third quarter 2005 total net revenues to $6.8 million from $4.9 million for the same period last year. Net earnings for the quarter were $637,000 compared to net a net loss of $125,000 for the same period last year, and diluted earnings per share of 4 cents compared to diluted loss per share of 1 cents for the same period last year.

Net revenues for the nine months ended September 30, 2005 were $24.5 million compared to $17.4 million in the same period last year. The company reported net earnings for the first nine months of 2005 of $4.7 million compared to net earnings of $2.1 million in the corresponding period a year ago, and diluted earnings per share of 30 cents compared to diluted earnings per share of 13 cents for the same period last year.

Edwin Lewis, president and co-chief executive officer stated, “Our third quarter performance was primarily driven by continued improvements in our Target business, coupled with better regular price sales at Modern Amusement. While there is still much work to be done in both businesses, we are encouraged by the progress we are making.”

The company also announced that its agreement with Hudson's Bay Company has expired, and there are no plans to renew it.

The company also announced that it would be holding its 2005 Annual Meeting on December 15, 2005. Proxy materials are expected to be mailed on or about November 17, 2005 to holders of record of the company's shares as of October 19, 2005.

                           MOSSIMO, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                 (IN THOUSANDS, EXCEPT PER SHARE DATA)
                              (Unaudited)

                                     For the Three      For the Nine
                                         Months            Months
                                     September 30,     September 30,
                                   ----------------  ----------------
                                     2005     2004     2005     2004
                                   -------  -------  -------  -------

Revenue from license royalties 
 and design service fees           $ 4,238  $ 4,187  $19,705  $16,181

Product sales                        2,533      747    4,775    1,197
                                   -------  -------  -------  -------

Total revenues                       6,771    4,934   24,480   17,378

Operating expenses:
 Cost of product sales               1,204      665    2,937      889
 Selling, general and
  administrative                     4,935    4,470   14,864   13,014
                                   -------  -------  -------  -------
   Total operating expenses          6,139    5,135   17,801   13,903
                                   -------  -------  -------  -------

Earnings (loss) from operations        632     (201)   6,679    3,475

Interest income                        123       26      232       73
                                   -------  -------  -------  -------
Earnings (loss) before income
 taxes                                 755     (175)   6,911    3,548

Income taxes                           118      (50)   2,226    1,476
                                   -------  -------  -------  -------

Net earnings (loss)                $   637  $  (125) $ 4,685  $ 2,072
                                   =======  =======  =======  =======

Earnings (loss) per common share:
  Basic                            $  0.04  $ (0.01) $  0.30  $  0.13
                                   =======  =======  =======  =======
  Diluted                          $  0.04  $ (0.01) $  0.30  $  0.13
                                   =======  =======  =======  =======