SOURCE: Innovo Group Inc.

February 13, 2006 06:00 ET

Innovo Group Announces the Sale of Its Former Headquarters

LOS ANGELES, CA -- (MARKET WIRE) -- February 13, 2006 -- Innovo Group Inc. (NASDAQ: INNO) today announced it is in the final stages of the disposition of its former headquarters located in Springfield, Tennessee. The Company has closed on two of three sales of the three separate parcels comprising the property, and plans to close the final contract on February 15, 2006.

Marc B. Crossman, Interim Chief Executive Officer stated, "We are extremely pleased to be able to dispose of this property and its parcels successfully. Upon closing on the remaining parcel, we expect to pay off our mortgage on the property and receive additional cash proceeds of approximately $300,000. While this asset is a discontinued operation, we firmly believe that this effort complements our previously announced goals to restructure and improve our operations, and we plan to inform our shareholders of each initiative achieved as we move forward."

About Innovo Group Inc.

Innovo Group Inc., through its operating subsidiaries Innovo Azteca Apparel, Inc. and Joe's Jeans, is a sales and marketing organization designing and selling apparel products to the retail and premium markets. The Company currently produces products under license agreements and other agreements for private label and branded products. The Company's apparel products consist of men's and women's denim and denim-related apparel products, including, women's high-end denim jeans and knit shirts featuring the Joe's Jeans® brand. More information is available at the company web site at www.innovogroup.com.

Statements in this news release which are not purely historical facts are forward-looking statements, including statements containing the words "believe," "plan," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are based upon information available to Innovo Group Inc. on the date of this release. Any forward-looking statement inherently involves risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to: uncertainty regarding the effect or outcome of the Company's ability to successfully close on the sale of its former headquarters located in Springfield, Tennessee; the likelihood of the Company to receive approximately $300,000 in net proceeds; the ability of the Company to use any need proceeds for working capital purposes; the ability to generate positive cash flow from operations and asset sales; and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. Readers are cautioned not to place undue reliance on forward-looking statements.

Contact Information

  • Contact:
    Dustin A. Huffine
    323-278-6687