Danier Leather Inc.

Danier Leather Inc.

March 28, 2005 17:11 ET

Danier Leather To Close Its 3 U.S. Stores


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DANIER LEATHER INC.

TSX SYMBOL: DL.SV

MARCH 28, 2005 - 17:11 ET

Danier Leather To Close Its 3 U.S. Stores

TORONTO, ONTARIO--(CCNMatthews - March 28, 2005) - Danier Leather Inc.
(TSX:DL.SV) today announced that it is closing its three retail stores
in the United States and will focus its resources on its Canadian
operations.

"We would rather focus our attention on generating the superior returns
from our Canadian operations that we have achieved in the past," said
Jeffrey Wortsman, President and Chief Executive Officer of Danier
Leather Inc.

"This decision reflects the prudent approach we've followed in exploring
opportunities in the U.S. marketplace and in pursuing value for our
shareholders. Our aim continues to be to create shareholder value
through the other elements of our strategy in Canada and elsewhere.
These include: enhancing the Danier brand; improved merchandise
strategies; opening, renovating and expanding our stores in Canada;
building our fast-growing accessories and corporate sales businesses;
and exploring emerging international opportunities. We'll also consider
future opportunities in the United States if we believe they can advance
the interests of our business and our shareholders," Mr. Wortsman added.

Two of the stores to be closed are located on Long Island, New York and
one store is located in Paramus, New Jersey.

During the third quarter a non-cash charge of approximately CDN $1.1
million will be recorded for the write-off of fixed assets and a cash
charge of approximately CDN $0.4 million will be recorded for lease and
employee termination costs. Annual savings from the closure of the U.S.
operations are expected to be approximately CDN $1.0 million.

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 99 shopping mall,
street-front, and power centre stores, or through its corporate sales
division and online through its website, www.danier.com.

Note: This press release may contain forward-looking statements that
involve risks, estimates, and uncertainties. Therefore, actual results
may differ materially. Examples of such risks and uncertainties include
those associated with product sales, demand for Danier's products,
availability of raw materials, foreign sourcing and manufacturing,
weather, estimates associated with the closure of the U.S. operation,
estimates of damages, costs and interest associated with the class
action lawsuit, continued growth of the leather apparel industry, and
competition and other associated risks with Danier's business. 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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Investor Relations Contact: Danier Leather Inc.
    Jeffrey Wortsman
    President and Chief Executive Officer
    (416) 762-8175 ext. 302
    (416) 762-7408 (FAX)
    Email: leather@danier.com
    or
    Danier Leather Inc.
    Bryan Tatoff
    Senior Vice-President and Chief Financial Officer
    (416) 762-8175 ext. 328
    (416) 762-7408 (FAX)
    Email: bryan@danier.com