Perry Ellis International, Inc. reported record fourth quarter revenues of $231.6 million, an 8.3% increase compared to $213.9 million for the same quarter last year. Fourth quarter of fiscal 2007 revenue increases were balanced across a number of the company's business units including Perry Ellis, swimwear/action sports, direct retail and international.

Fourth quarter of fiscal 2007 EBITDA grew to $25.7 million, a $4.8 million or 23% increase over the same period last year. A table showing the reconciliation of EBITDA to net income is attached. Net income was $10.7 million, a 32% increase compared to $8.1 million reported in the fourth quarter of fiscal 2006, and fourth quarter of fiscal 2007 earnings per share were 68 cents per fully diluted share, a 26% increase from 54 cents per fully diluted share reported in the fourth quarter of fiscal 2006.

George Feldenkreis, chairman and chief executive officer, commented, “We are very proud of our numerous fourth quarter accomplishments, with record revenues, EBITDA, earnings and the purchase and successful re-licensing of Perry Ellis fragrance operations. During the quarter, we also declared and paid a 3-for-2 stock dividend – a strong indication of our confidence in our future growth potential. During fiscal 2007 we have exhibited significant gross profit margin expansion as a result of improved production planning, sourcing and, most importantly, our products' continued exceptional performance at retail. This led to strong cash flow generation which enabled us to reduce overall debt levels by over $21 million and lower our overall cost of capital with the retirement of high cost $57 million senior secured notes. We are excited about our position in the market today and look forward to strong results in fiscal 2008.”

Fiscal 2007 total revenues were $829.8 million, a 2.3% decline compared to $849.4 million reported in the year ended January 31, 2006 (“fiscal 2006”), reflecting the impact of retail consolidation and elimination of certain private label sportswear programs during the first half of the year. Fiscal 2007 EBITDA grew to a record $70.9 million, a $3.6 million or 5.4% increase over fiscal 2006 levels, and EBITDA margins improved 63 basis points to 8.5% of revenues.

Fiscal 2007 earnings were $22.4 million or $1.45 per fully diluted share compared to $22.7 million or $1.51 per fully diluted share in fiscal 2006. On a proforma basis, which the company believes provides a more meaningful comparison of financial performance, fiscal 2007 earnings were $1.58 per fully diluted share compared to $1.51 per fully diluted share last year, a 4.6% increase. Proforma results exclude the impact of $3.0 million in debt extinguishment costs ($0.13 per fully diluted share) incurred as a result of the March 2006 repayment of the company's $57 million senior secured notes. A table showing the reconciliation of actual to proforma results is attached. Additionally, both proforma and reported results include expenses of approximately $0.05 per share related to the adoption of SFAS 123R, requiring the expensing of stock-related compensation. These costs are not reflected in fiscal 2006 results.

Oscar Feldenkreis, president and chief operating officer, remarked, “More than ever, this year was a testament to the power of our brands. The sell throughs of Perry Ellis, the best performing neo-traditional men's collection at department stores, helped us increase door penetration and floor space; our golf performance products for Grand Slam, PING and PGA TOUR are doing extremely well across all distribution channels; Original Penguin continues its wholesale expansion with concepts such as Black Label; Cubavera is increasingly reaching new demographics beyond Hispanics; and our re-launched Jantzen and recently-added JAG brand are performing extraordinarily well in the department store channel during the current swim season.”

Oscar Feldenkreis concluded: “We believe the feedback from the MAGIC show in February and our results in fiscal 2007, especially our fourth quarter, put us on track for a record year in fiscal 2008. We expect strong growth coming from our Perry Ellis brand, golf and Hispanic lifestyles, swimwear/action sports, international and direct retail operations. We remain poised to continue leveraging the sourcing and planning platforms we have built to deliver efficiencies across all of our businesses. For fiscal 2008, we anticipate revenue growth in the 8-10% range to $900 – $910 million and earnings to increase in the range of 14% – 16% for $1.81 – $1.84 per fully diluted share.”

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

                               Three Months Ended      Year Ended
                                   January 31,         January 31,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------

  Net sales                    $225,869  $208,147  $807,616  $827,504
  Royalty income                  5,714     5,728    22,226    21,910
                               --------- --------- --------- ---------
     Total revenues             231,583   213,875   829,842   849,414
Cost of sales                   152,540   148,486   554,046   586,900
                               --------- --------- --------- ---------
Gross profit                     79,043    65,389   275,796   262,514
Operating expenses
  Selling, general and
   administrative expenses       53,369    44,482   204,883   195,236
  Depreciation and
   amortization                   3,258     2,658    11,608     9,557
                               --------- --------- --------- ---------
     Total operating expenses    56,627    47,140   216,491   204,793
                               --------- --------- --------- ---------
Operating income                 22,416    18,249    59,305    57,721
Costs on early extinguishment
 of debt                              -         -     2,963         -
Interest expense                  5,464     5,528    21,114    21,930
                               --------- --------- --------- ---------

Income before minority
 interest and income taxes       16,952    12,721    35,228    35,791
Minority interest                   272        43       508       470
Income tax provision              5,969     4,576    12,311    12,639
                               --------- --------- --------- ---------
Net income                      $10,711    $8,102   $22,409   $22,682
                               ========= ========= ========= =========

Net income per share
   Basic                          $0.73     $0.56     $1.55     $1.59
                               ========= ========= ========= =========
   Diluted                        $0.68     $0.54     $1.45     $1.51
                               ========= ========= ========= =========

Weighted average number of
 shares outstanding(a)
   Basic                         14,610    14,379    14,504    14,301
   Diluted                       15,824    15,021    15,455    15,050

(a) On November 21, 2006, the Company announced 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 press release have been restated to include
 the impact of the stock dividend.