Kellwood Company has signed an agreement to acquire Royal Robbins, Inc., a division of Phoenix Footwear Group, Inc., for approximately $40 million. Sales for Royal Robbins, which was acquired by Phoenix in October 2003,were approximately $30 million in calendar year 2006. The transaction is expected to close by early July.

Kellwood does not anticipate the acquisition will significantly impact 2007 results.

Phoenix Footwear expects to report a net pre-tax gain of approximately $23 million on the sale including transaction costs. Phoenix Footwear had acquired Royal Robbins, which is based in MOdesto, Calif., for a total of $11.7 million.

Robert Skinner, Kellwood CEO commented, “The acquisition of Royal Robbins allows us to expand our outdoor recreation
and leisure products platform. We have a very strong portfolio of brands already in the camping,
mountaineering and outdoor products category such as Kelty and Sierra Designs. Royal Robbins
introduces us to the outdoor apparel sector of that industry and will become part of our American
Recreation Products, Inc. division.”

“We have been searching for the right outdoor apparel company to add to our division¬ís product
mix and Royal Robbins is the perfect fit. Their highly visible, strong consumer base enhances our
positioning and allows us to accelerate our growth and profitability,” said George J. Grabner, Jr., president
of American Recreation Products.
Robert (Bob) Orlando, president of Royal Robbins, and his team will continue with the company.
He will report to Grabner.

Commenting on the transaction, Jim Riedman, Chairman of Phoenix Footwear Group, Inc., said, “Royal Robbins is an outstanding brand with strong revenues and a very loyal following, and we are very pleased with a three-fold return we expect to achieve on this asset in just over a three-year period. This transaction represents a significant step in our plan to position our company to further enhance shareholder value. It provides a source of capital that will allow us to further pursue our growth strategy of focusing on the strengthening of our remaining brands and paying down the majority of our long-term debt.”

Kellwood was represented by Financo, Inc. and
Phoenix Footwear by Kurt Salmon Associates Capital Advisors, Inc.