Van Heusen Sportswear Program to be Launched in Mexico

NEW YORK--(BUSINESS WIRE)--Eurostyle de Mexico, S.A. de B.V., A.C. and Ben Betesh International S.A. d/b/a Euro CVH S.A. de C.V. have been licensed by Phillips-Van Heusen Corporation (NYSE: PVH) to manufacture and market a full range of Van Heusen sportswear and accessories and operate Van Heusen retail stores in Mexico.

“The Van Heusen brand is an icon of American apparel, with a track record of almost a century of style and quality. We consider it a privilege to continue its rich history in Mexico.”

The Van Heusen brand, which dates back to the early 1900s, has had a presence in the Mexican market for more than six decades. Euro CVH has been granted the right under the license agreement to manufacture and market in Mexico woven and knit shirts, knitwear, pants, jeans, jackets, hats, caps, socks, shoes, swimwear, T-shirts, underwear, neckwear, khakis, scarves, handkerchiefs and luggage under the Van Heusen brand. In addition to distribution in Sears Mexico and other department and specialty stores, the license agreement grants Euro CVH the right to open Van Heusen retail stores Mexico and obligates Euro CVH to open seven Van Heusen retail stores by 2012. The licensee will also coordinate the establishment of shop-in-shops in Mexican retail stores.

In addition to PVH’s namesake Van Heusen brand, Euro CVH will market products under the Editions by Van Heusen label, unique to the Mexican market, and the Studio by Van Heusen brand.

“The Van Heusen brand has a rich history and superb consumer recognition in the Mexican market,” said Allen Sirkin, President and Chief Operating Officer of Phillips-Van Heusen. “By expanding our partnership with Euro CVH, we are taking an important step in projecting a singular image for our namesake brand with a company that clearly understands the power and prestige of the brand.”

Euro CVH became the Mexican distributor for dress shirts under PVH’s owned Van Heusen and Calvin Klein brands and its licensed Geoffrey Beene brand in 2006, and prior to such time, Euro CVH held a license from PVH for such products. The current distribution arrangement also includes dress shirts under the Chaps brand, for which PVH holds rights as licensee from PRL USA, Inc. and The Polo Lauren Company, LP, and, beginning in Fall 2008, will include PVH’s ARROW dress shirts as well.

“We are extremely excited about this opportunity to build on our strong, mutually beneficial relationship with PVH,” said Mauricio Sacal, Chief Executive Officer of Eurostyle. “The Van Heusen brand is an icon of American apparel, with a track record of almost a century of style and quality. We consider it a privilege to continue its rich history in Mexico.”

Phillips-Van Heusen Corporation is one of the world’s largest apparel companies. It owns and markets the Calvin Klein brand worldwide. It is the world’s largest shirt and neckwear company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, IZOD, ARROW, Bass and G.H. Bass & Co., and its licensed brands, including Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Unlisted, A Kenneth Cole Production, BCBG Max Azria, BCBG Attitude, MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection, JOE Joseph Abboud, Tommy Hilfiger, Perry Ellis Portfolio, DKNY and, beginning in Fall 2008, Timberland.

Euro CVH is a leading manufacturer, marketer, retailer and distributor of fashion apparel and footwear in Mexico and throughout Latin America.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements made in this release, including, without limitation, statements relating to the Company's future revenues and earnings, plans, strategies, objectives, expectations and intentions, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, the following: (i) the Company's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the levels of sales of the Company's apparel, footwear and related products, both to its wholesale customers and in its retail stores, the levels of sales of the Company's licensees at wholesale and retail, and the extent of discounts and promotional pricing in which the Company and its licensees and other business partners are required to engage, all of which can be affected by weather conditions, changes in the economy, fuel prices, reductions in travel, fashion trends, consolidations, repositionings and bankruptcies in the retail industries, repositionings of brands by the Company's licensors and other factors; (iii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth and inventory, including the Company's ability to continue to realize revenue growth from developing and growing Calvin Klein; (iv) the Company's operations and results could be affected by quota restrictions and the imposition of safeguard controls (which, among other things, could limit the Company's ability to produce products in cost-effective countries that have the labor and technical expertise needed), the availability and cost of raw materials (particularly petroleum-based synthetic fabrics, which are currently in high demand), the Company's ability to adjust timely to changes in trade regulations and the migration and development of manufacturers (which can affect where the Company's products can best be produced), and civil conflict, war or terrorist acts, the threat of any of the foregoing or political and labor instability in the United States or any of the countries where the Company's products are or are planned to be produced; (v) disease epidemics and health related concerns, which could result in closed factories, reduced workforces, scarcity of raw materials and scrutiny or embargoing of goods produced in infected areas; (vi) acquisitions and issues arising with acquisitions and proposed transactions, including without limitation, the ability to integrate an acquired entity into the Company with no substantial adverse affect on the acquired entity's, or the Company's existing, operations, employee relationships, vendor relationships, customer relationships or financial performance; (vii) the failure of the Company's licensees to market successfully licensed products or to preserve the value of the Company's brands, or their misuse of the Company's brands and (viii) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.

The Company does not undertake any obligation to update publicly any such forward-looking statement, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events or otherwise.