Perry Ellis International, Inc. third quarter revenues were $213.2 million, compared to $220.0 million, a 3.1% decline from the comparable period a year ago. For the third quarter of fiscal 2007, net earnings were $8.2 million compared to $8.1 million for the comparable quarter last year and per share results were equal to last year at 80 cents per fully diluted share.

The decline in total revenues during the quarter was anticipated as a part of management's fiscal 2007 plan and is primarily attributable to the final impacts of retailer consolidation and elimination of certain private label sportswear programs. Total revenues for the nine month period ended October 31, 2006 were $598.3 million, compared to $635.5 million, a 5.9% decline versus the comparable period last year.

Third quarter earnings were above last year's levels as improved gross profit margin performance and lower interest costs offset the impact of lower total revenues. Additionally, the third quarter of fiscal 2007 results include expenses 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.

Overall third quarter results were ahead of management's previously announced plans, and included a 200 basis point improvement in gross profit margin and a 29 basis point improvement in EBITDA margin.

For the nine months ended October 31, 2006, earnings were $1.14 per fully diluted share compared to earnings of $1.45 per fully diluted share for the comparable period last year. However, proforma earnings for nine months of fiscal 2007 were $1.33 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 earnings per share results is attached. Additionally, both proforma and reported earnings per share results for the nine months of fiscal 2007 include expenses of $0.06 per share related to the adoption of SFAS 123R, requiring the expensing of stock options. These costs are not reflected in prior year results.

Looking forward for the balance of fiscal 2007, Perry Ellis indicated it anticipates annual revenue in the range of $840 – $850 million, and confirmed it's previously announced proforma earnings view range of $2.30 – $2.40 per fully diluted share.

In a separate release today Perry Ellis International also reported a 3-for-2 stock split effected in the form of a stock dividend payable on December 29, 2006 to stockholders of record as of December 12, 2006. All earnings per share references in this release do not include the impact of the stock dividend.

George Feldenkreis, Chairman and Chief Executive Officer commented: “We are pleased with our strong gross profit margin improvement both during the third quarter and on a year to date basis. This is a consequence of our products continuing to perform exceptionally well at retail, as well as improved production planning and sourcing. We are also pleased to announce a 3-for-2 stock split which reflects the confidence we have in our future business growth.”

Oscar Feldenkreis, Vice-Chairman, President and Chief Operating Officer stated: “Third quarter results reflect the end of the impact of retail consolidation and other factors that have impacted top line growth. We are well positioned for record sales and gross margins in our upcoming fourth quarter with our diversified growth platforms including swim, outerwear, Perry Ellis sportswear, international and direct retail. We expect these and other growth platforms to continue to show strong growth as we enter fiscal 2008.”

           PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
                 SELECTED FINANCIAL DATA (UNAUDITED)
           (amounts in 000's, except per share information)
INCOME STATEMENT DATA:
                              Three Months Ended   Nine Months Ended
                                  October 31,          October 31,
                              -------------------- -------------------
                                2006      2005       2006      2005
                              --------- ---------  --------- ---------

Revenues
  Net sales                   $207,794  $214,665   $581,747  $619,357
  Royalty income                 5,445     5,290     16,512    16,182
                              --------- ---------  --------- ---------
      Total revenues           213,239   219,955    598,259   635,539
Cost of sales                  140,781   149,595    401,506   438,414
                              --------- ---------  --------- ---------
Gross profit                    72,458    70,360    196,753   197,125
Operating expenses
  Selling, general and
   administrative expenses      51,746    49,648    151,514   150,754
  Depreciation and
   amortization                  2,900     2,436      8,350     6,899
                              --------- ---------  --------- ---------
      Total operating
       expenses                 54,646    52,084    159,864   157,653
                              --------- ---------  --------- ---------
Operating income                17,812    18,276     36,889    39,472
Costs on early extinguishment
 of debt                             -         -      2,963         -
Interest expense                 5,000     5,621     15,650    16,402
                              --------- ---------  --------- ---------

Income before minority
 interest and income taxes      12,812    12,655     18,276    23,070
Minority interest                   92        59        236       427
Income tax provision             4,479     4,503      6,342     8,063
                              --------- ---------  --------- ---------
Net income                      $8,241    $8,093    $11,698   $14,580
                              ========= =========  ========= =========

Net income per share
   Basic                         $0.85     $0.85      $1.21     $1.53
                              ========= =========  ========= =========
   Diluted                       $0.80     $0.80      $1.14     $1.45
                              ========= =========  ========= =========

Weighted average number of
 shares outstanding
   Basic                         9,692     9,471      9,645     9,516
   Diluted                      10,360    10,090     10,218    10,039