Perry Ellis International, Inc. first quarter total revenues were $214.0 million, a 5% decrease compared to $225.6 million reported during the comparable period last year. The decline in total revenues during the quarter was anticipated as part of management’s fiscal 2007 plan and was primarily a result of previously announced reductions of private label and branded programs at a national mid tier chain as well as the impact of Federated Department Store door closures due to the May Company merger integration.

First quarter of fiscal 2007 earnings were 59 cents per fully diluted share compared to 89 cents per fully diluted share last year. Proforma earnings were 78 cents per fully diluted share compared to 89 cents per fully diluted share last year. Proforma results exclude the impact of $3.0 million in debt extinguishment costs ($1.9 million net of taxes) incurred as a result of the March 2006 repayment of the company’s $57 million senior secured notes. The company believes that proforma results provide a more meaningful comparison of financial performance. A table showing the reconciliation of actual to proforma results is attached. Additionally, both proforma and reported earnings per share results for the first quarter of fiscal 2007 include expenses of $0.02 per share related to the adoption of SFAS 123R, requiring the expensing of stock options, which are not reflected in prior year results.

George Feldenkreis, Chairman and Chief Executive Officer commented: “We performed on plan for the first quarter of fiscal 2007 despite the impact of retailer consolidation. In response to today’s challenges, we effectively improved our gross margins and reduced our operating expenses compared to last year. In addition, we continue to effectively manage our working capital, by significantly reducing our inventory levels and improving inventory turns. As a result of this, we were able to repay our $57 million senior secured notes during the quarter, which will lower our cost of capital by $1.5 million on an annual basis and we reduced overall debt levels by over $56 million versus a year ago.”

Mr. Feldenkreis continued: “We continue to take advantage of opportunities to strategically expand our brand and product category portfolio. Our recent addition of the Dockers license for men’s outerwear increases our importance to our customers and provides us a significant platform for new growth opportunities. In the action sports/swimwear category, our upcoming growth plans for Gotcha, MCD and Girl Star, as well as today’s announcement of the addition of the JAG® brand men’s and women’s swimwear adds to our portfolio of brands. We had a good swim year and the JAG addition provides an exciting new growth opportunity with significant cost leverage from our existing operations. We remain committed to maximizing opportunities across all distribution channels.”

Oscar Feldenkreis, President and Chief Operating Officer stated: “We continue to perform well across multiple distribution channels. Perry Ellis Collection continued its trend as one of the best performing collections in department stores, with strong comparable store sales increases and improved margins. Savane bottoms are performing well in an expanded number of department store doors, demonstrating the potential for additional expansion. In the mid tier channel, Axist and Natural Issue showed excellent sales gains. Internationally, we showed strong growth in the quarter with the successful launch of Original Penguin throughout Europe. Our Perry Ellis direct retail stores showed double digit comparable store growth during the quarter and recent Original Penguin store openings in South Beach and Newport Beach continue to confirm the expansion potential of this concept.”

           (amounts in 000's, except per share information)

                                                  Three Months Ended
                                                       April 30,
                                                    2006       2005
                                                 ---------- ----------
  Net sales                                      $ 208,254  $ 220,394
  Royalty income                                     5,744      5,206
                                                 ---------- ----------
       Total revenues                              213,998    225,600
Cost of sales                                      143,549    152,673
                                                 ---------- ----------
Gross profit                                        70,449     72,927
Operating expenses
  Selling, general and administrative expenses      49,821     51,088
  Depreciation and amortization                      2,685      2,240
                                                 ---------- ----------
       Total operating expenses                     52,506     53,328
                                                 ---------- ----------
Operating income                                    17,943     19,599
Costs on early extinguishment of debt                2,963          -
Interest expense                                     5,895      5,370
                                                 ---------- ----------

Income before minority interest and income taxes     9,085     14,229
Minority interest                                       (1)       243
Income tax provision                                 3,172      5,095
                                                 ---------- ----------
Net income                                       $   5,914  $   8,891
                                                 ========== ==========

Net income per share
   Basic                                         $    0.62  $    0.94
                                                 ========== ==========
   Diluted                                       $    0.59  $    0.89
                                                 ========== ==========

Weighted average number of shares outstanding
   Basic                                             9,607      9,465
   Diluted                                          10,097     10,000