Perry Ellis International, Inc. reported record total revenue for the first quarter ended April 30, 2004 of $197 million, an increase of $89 million or 82 percent over the $108 million reported for the same period last year.

The company benefited from the June 2003 acquisition of Salant Corporation and from strong organic growth. Approximately $65 million of the increase in revenue is attributable to the Salant acquisition. Approximately $23 million of the increase in revenue is attributable to increases in the company's swim and core wholesale businesses that represented an increase of approximately 21 percent over last year's comparable period.

The company reported net income of $8.2 million for the quarter, an increase of $2.6 million or 46 percent over the same period last year. Earnings per fully diluted share were $0.89, an increase of $0.09, or 11.3% over the first quarter last year. Earnings per diluted share included nearly 2 million additional shares compared to the year ago quarter as a result of the June 2003 Salant acquisition.

George Feldenkreis, chairman and chief executive officer, stated: “The strength of the men's apparel business drove our record first quarter results. The dramatic shift in the men's retail climate that began last quarter has continued to boost sales through the first quarter of this year. We are benefiting not only from an improving economy, but also from our focus on newness and innovation. Our outstanding design team has been able to develop trend-right products that raise the fashion bar.”

Oscar Feldenkreis, president and chief operating officer, voiced his pleasure with the company's success across all its divisions. “In our core wholesale division, our Hispanic brands are benefiting from the trend toward fashion and color. Our Cubavera® brand is a leading brand in department stores with some of the best sell throughs in the industry. Our recent agreement with PGA TOUR® adds this powerful name to our portfolio of golf brands that includes PING® COLLECTION and Grand Slam®. Our Perry Ellis division is also thriving in the positive retail climate. In our swim division, we are pleased with the bookings and sell-throughs of our Jantzen® and Nike® brands. Nike® swim is exceeding plan in all channels. Our licensing division gives us much reason for optimism. A number of new license agreements that were finalized in fiscal 2004 are doing very well.”

                         (Dollars in 000's)

                                                 Three Months Ended
                                                      April 30,
                                                   2004        2003
                                                ----------  ----------
  Net sales                                    $  192,104  $  101,867
  Royalty income                                    5,315       6,411
                                                ----------  ----------
       Total revenues                             197,419     108,278
Cost of sales                                     134,616      71,545
                                                ----------  ----------
Gross profit                                       62,803      36,733
Operating expenses
  Selling, general and administrative expenses     44,873      21,610
  Depreciation and amortization                     1,505       1,112
                                                ----------  ----------
       Total operating expenses                    46,378      22,722
                                                ----------  ----------
Operating income                                   16,425      14,011
Interest expense                                    3,445       4,963
                                                ----------  ----------
Income before minority interest and income
 taxes                                             12,980       9,048
Minority interest                                      59          46
Income taxes                                        4,716       3,374
                                                ----------  ----------
Net income                                     $    8,205  $    5,628
                                                ==========  ==========

Net income per share
   Basic                                       $     0.97  $     0.87
                                                ==========  ==========
   Diluted                                     $     0.89  $     0.80