Mossimo Q4 Earnings Down 9.2% on 6.6% Sales Gain

Mossimo, Inc. announced financial results for the fourth quarter and year ended December 31, 2004.

Mossimo, Inc. reported fourth quarter 2004 net revenues of $3.2 million compared to $3.0 million for the same period last year. The company reported fourth quarter net earnings of $629,000 compared to net earnings of $693,000 for the same period last year, and diluted earning per share of 4 cents compared to diluted earnings per share of 4 cents for the same period last year.

Net revenues for the year ended December 31, 2004 were $20.5 million compared to $19.9 million in the same period last year. The company reported net earnings for fiscal 2004 of $2.7 million compared to net earnings of $4.6 million in fiscal 2003, and diluted earnings per share of 17 cents compared to diluted earnings per share of 29 cents for the same period last year.

Edwin Lewis, President and co-chief executive officer stated, “2004 was a period of transition for our company. During the year we invested in our infrastructure in order to enhance our performance at Target. We also restructured our operations at Zellers. At the same time, we further diversified our business with the acquisition of Modern Amusement and our licensing agreement with Intermoda in Mexico. While we are encouraged by the progress we have made, there is still much work to be done, and we remain focused on executing our strategy.”

MOSSIMO, INC.
                  CONDENSED STATEMENTS OF OPERATIONS
                 (In thousands, except per share data)
                               Unaudited


                              For the Three Months    For the Years
                                Ended December 31,  Ended December 31,
                                  2004      2003      2004      2003
                                  ----      ----      ----      ----
REVENUE FROM LICENSE ROYALTIES
 AND DESIGN SERVICE FEES       $  2,533  $  2,993  $ 18,714  $ 19,895

Product Sales                       624        --     1,821        --

Total Revenues                    3,157     2,993    20,535    19,895

OPERATING EXPENSES:
Cost of Product Sales               352               1,241
Selling, general and
 administrative                   1,897     2,621    14,843    13,477

Operating earnings                  908       372     4,451     6,418

Other expense, net                    -      (411)      (71)        -

Interest income, net                 27        27       104        23
                               --------  --------  --------  --------
Earnings (loss) before income
 taxes                              935       (12)    4,484     6,441

Provision (benefit) for income
 taxes                              306      (705)    1,783     1,875
                               --------  --------  --------  --------
Net earnings                   $    629  $    693  $  2,701  $  4,566
                               ========  ========  ========  ========
Earnings per common share:
    Basic                      $   0.04  $   0.04  $   0.17  $   0.29
                               ========  ========  ========  ========

    Diluted                    $   0.04  $   0.04  $   0.17  $   0.29
                               ========  ========  ========  ========

Weighted average common shares
 outstanding:

    Basic                        15,738    15,613    15,738    15,613
                               ========  ========  ========  ========

    Diluted                      15,774    15,658    15,774    15,658
                               ========  ========  ========  ========