Perry Ellis International, Inc. second quarter total revenues were $171.0 million, compared to $190.0 million, a 10.0% decrease versus the comparable period last year. The decline in total revenues during the quarter was anticipated in 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, the impact of Federated Department Store door closures due to the May Company merger integration and a reduction in off price sales. These factors also impacted total revenues for the six month period ended July 31, 2006, which were $385.0 million, compared to $415.6 million, a 7.4% decrease versus the comparable period last year.

Due to the seasonality of the Company’s business, second quarter results historically result in losses. For the second quarter of fiscal 2007, the net loss was 25 cents per fully diluted share. This result was the same as the loss per fully diluted share reported during the same period last year, because improved gross margin performance offset the impact of lower total revenues. Additionally, the second quarter of fiscal 2007 results include a reduction of $0.02 per share for the adoption of Statement of Financial Accounting Standards (“SFAS”) 123R requiring the expensing of stock options. These costs are not reflected in prior year results.

For the first half ended July 31, 2006, earnings were $0.34 per fully diluted share compared to earnings of $0.65 per fully diluted share for the comparable period last year. Proforma earnings for the first half of fiscal 2007 were $0.53 per fully diluted share. Proforma results exclude the impact of $3.0 million in debt extinguishment costs ($0.19 per fully diluted share) 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, first half fiscal 2007 proforma and reported first half of fiscal 2007 earnings per share include expenses of $0.04 per share related to the adoption of SFAS 123R, requiring the expensing of stock options. These costs are not reflected in prior year results.

George Feldenkreis, chairman and chief executive officer commented: “We continue to perform on plan despite the impact of retailer consolidation. We are pleased with the significant improvement of our gross profit margins, which is a result of great products performing exceptionally well at retail, as well as improved production planning and sourcing. We also continue to effectively manage our working capital, by significantly reducing inventory levels and improving inventory turns. Lastly, we continue to improve processes to lower our expense levels, which resulted in lower first half operating expenses versus last year, despite start-up investments in the outerwear and swim divisions as a result of our recently added Dockers® and JAG® license agreements, as well as the expensing of stock options.”

Oscar Feldenkreis, vice-chairman, president and chief operating officer stated: “We are excited about our growth opportunities and expect to resume strong growth in our fourth quarter across multiple product categories and channels. We are particularly enthused by the expected growth in swim, outerwear, Perry Ellis® sportswear, international and direct retail. Our Perry Ellis Collection sportswear is the leading indicator of consumer interest in the brand, and this business continues to trend up. The Collection’s strong current retail performance, coupled with retailers response to the spring 2007 deliveries we unveiled during August’s Men’s Market Week, fuel the excitement in Perry Ellis. Consequently, most department stores are planning for double digit Perry Ellis growth this spring.”

He concluded: “Although a variety of issues are weighing on consumer spending, we are confident that our standout brands will continue to claim a substantial share of the market. Our focused investments in our brands marketing will attract consumers to our various lifestyle concepts and continuously improved product offerings.”

           PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
                 SELECTED FINANCIAL DATA (UNAUDITED)
           (amounts in 000's, except per share information)

INCOME STATEMENT DATA:
                                Three Months Ended   Six Months Ended
                                     July 31,            July 31,
                                ------------------  ------------------
                                  2006      2005      2006      2005
                                --------  --------  --------  --------

Revenues
  Net sales                    $165,699  $184,298  $373,953  $404,692
  Royalty income                  5,323     5,686    11,067    10,892
                                --------  --------  --------  --------
    Total revenues              171,022   189,984   385,020   415,584
Cost of sales                   117,176   136,146   260,725   288,819
                                --------  --------  --------  --------
Gross profit                     53,846    53,838   124,295   126,765
Operating expenses
  Selling, general and
   administrative expenses       49,947    50,017    99,768   101,106
  Depreciation and
   amortization                   2,765     2,223     5,450     4,463
                                --------  --------  --------  --------
    Total operating expenses     52,712    52,240   105,218   105,569
                                --------  --------  --------  --------
Operating income                  1,134     1,598    19,077    21,196
Costs on early extinguishment
 of debt                              -         -     2,963         -
Interest expense                  4,755     5,411    10,650    10,781
                                --------  --------  --------  --------

(Loss) income before minority
 interest and income taxes       (3,621)   (3,813)    5,464    10,415
Minority interest                   145       125       144       368
Income tax (benefit) provision   (1,309)   (1,534)    1,863     3,560
                                --------  --------  --------  --------
Net (loss) income              $ (2,457) $ (2,404) $  3,457  $  6,487
                                ========  ========  ========  ========

Net (loss) income per share
  Basic                        $  (0.25) $  (0.25) $   0.36  $   0.68
                                ========  ========  ========  ========
  Diluted                      $  (0.25) $  (0.25) $   0.34  $   0.65
                                ========  ========  ========  ========

Weighted average number of
 shares outstanding
  Basic                           9,636     9,512     9,622     9,489
  Diluted                         9,636     9,512    10,146    10,013