SOURCE: Innovo Group Inc.

February 07, 2007 16:02 ET

Innovo Group Signs License Agreement for Handbags and Belts

LOS ANGELES, CA -- (MARKET WIRE) -- February 7, 2007 -- Innovo Group Inc. (the "Company") (NASDAQ: INNO) announced today that it has signed a license agreement with The Betesh Group, in association with its Generation Company division, to produce and sell handbags and small leather goods, including belts and wallets, for men and women under the Joe's® brand. This license will become effective upon approval by the Company's shareholders of the merger announced today by the Company to acquire all right, title and interest in and to the Joe's® and Joe's Jeans™ brand and related marks from JD Holdings, Inc.

Marc Crossman, President and CEO of the Company, commented, "We are extremely excited to announce this partnership with The Betesh Group to produce handbags and small leather goods under the Joe's® brand. We have been working in advance with The Betesh Group to prepare our first showing of handbags at The Coterie Show in New York beginning this month on February 20. We look forward to working with The Betesh Group to create what we believe will be the finest quality products for our customers."

Said Elliot Betesh, President of The Betesh Group, "The Betesh Group is thrilled to partner with Innovo Group. We look forward to capturing the essence of Joe's Jeans and translating that into a successful line of unique, fashion forward accessories."

Crossman further commented, "This license agreement represents the first step toward generating additional revenue streams for our Joe's Jeans business. We believe that our trademark JD® logo translates very well onto handbag and small leather good products, as well as other categories, which we believe will greatly complement our denim offerings. As we move forward to consummate the acquisition of the Joe's® and Joe's Jeans™ marks we plan to expand our brand awareness by seeking other licensing opportunities that will complement our overall strategy to grow the brand worldwide."

About Innovo Group Inc.

Innovo Group Inc., through its operating subsidiary Joe's Jeans, Inc., is a design and sales organization designing, producing and selling apparel products to the retail and premium markets under the Joe's™ and Joe's Jeans® brands. Under these brands, the Company's apparel products consist of men's and women's denim and denim-related apparel products. More information is available at the company web site at or at

About The Betesh Group

The Betesh Group, in business for more than 35 years, is a family owned global consumer products organization with six distinct and growing companies. Since its inception, the dynamic entity has grown to a stellar $250 million business which includes: Mitzi International (Ladies Handbags and Accessories), Generation Company (Backpacks, Sports and Travel Related Accessories and Upscale Ladies' Accessories), Motion Systems (Computer, Audio and Video Accessories), Baby Boom (Diaper Bags, Infant Bedding and Room Décor), Bananafish (Upscale Infant Bedding and Room Décor) and Funhouse (Toddler Bedding and Toddler/Tween/Teen Furniture and Room Décor). Headquartered in New York, The Betesh Group operates eleven offices in four countries with over 800 employees worldwide.

The Betesh Group's portfolio of distinguished accessories licenses includes Baby Phat, Eddie Bauer and Southpole. The company also owns the acclaimed handbag line Sloane & Alex, designed by Carlos Falchi.

Statements in this news release which are not purely historical facts are forward-looking statements, including statements containing the words "intend," "believe," "estimate, "project," "expect" or similar expressions. Forward-looking statements in this press release include, without limitation, our ability to consummate the merger transaction to acquire the right, title and interest in the Joe's® and Joe's Jeans™ brand and marks, our ability to capture market share in other product categories for the Joe's® brand, our ability to achieve profitability, our expectations for our Joe's Jeans® brand in the marketplace and our belief in our growth strategy. 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 our reliance on our Joe's® brand to generate revenue, our ability and success in implementing our strategic plan to focus our resources on our Joe's® brand; acceptance and sales of the Company's Joe's® brand on a variety of product offerings in the marketplace; successful implementation of the Company's strategic plan, including a merger transaction to acquire the right, title and interest in the Joe's® and Joe's Jeans™ brand and marks; the Company's ability to seek additional licenses for the Joe's® brand and generate additional revenue from these licenses; the success of licensed products in the marketplace; the ability to generate positive cash flow from operations; and our ability to maintain and effectively manage relationships with vendors and third parties to whom we outsource certain of our business operations 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:
    Innovo Group Inc.
    Dustin Huffine

    Integrated Corporate Relations
    Investors: Brendon Frey/James Palczynski