Danier Leather Inc.
TSX : DL

Danier Leather Inc.

October 12, 2007 11:02 ET

Danier Applauds Supreme Court Decision

TORONTO, ONTARIO--(Marketwire - Oct. 12, 2007) - Danier Leather Inc. (TSX:DL) today applauded the Supreme Court of Canada's unanimous decision to uphold the 2005 Ontario Court of Appeal's ruling in the matter of a class action concerning the Company's initial public offering ("IPO") in 1998.

"The Supreme Court decision removes any uncertainty and allows Danier to continue to build and grow its business," said Danier CEO Jeffrey Wortsman. "We're going to maintain our focus on improving profitability, providing exciting merchandise and great service to our customers and growing our international and direct sales business."

"This case was about a forecast contained in the IPO prospectus. At the time of closing of the IPO, management's analysis showed that the forecast would be achieved and it was in fact achieved," said Mr. Wortsman.

The Company currently has a provision of $18 million less future taxes of approximately $4.6 million related to this action. As a result of the Supreme Court decision, the provision will be reversed in Q1 2008 and shareholder's equity will increase by approximately $2 per share. The Company was also awarded costs and such costs will be determined at a later date.

About Danier

Danier Leather Inc. is a leading integrated designer, manufacturer, and retailer of high-quality leather and suede clothing and accessories. The Company's merchandise is marketed exclusively under the well-known Danier brand name and is available only at its 91 shopping mall, street-front, and power centre stores, and through its corporate sales division.

Note: This press release contains forward-looking statements that involve risks, estimates, and uncertainties in connection with the class action lawsuit. For an expanded discussion of risks and uncertainties, please see the documents filed by Danier Leather Inc. with the Ontario Securities Commission. Danier disclaims any responsibility to update or revise such forward-looking statements whether as a result of new information, future events or otherwise.

Contact Information

  • Trillium Corporate Communications Inc.
    Steve Skidd
    (416) 762-8175 ext. 333
    Email: steve@trilliumpr.com