Liz Claiborne Inc. and Li & Fung USA reach sale agreement

NEW YORK Liz Claiborne Inc. and Li & Fung USA, a member of Li & Fung Limited, today announced that they have reached an agreement for the sale of the assets of four of Liz Claiborne Inc.'s brands: Emma James, Intuitions, JH Collectibles and Tapemeasure.

The transaction, expected to close in the fourth quarter of 2007, includes the sale of trademarks and inventory. Liz Claiborne Inc. has agreed to provide transition services to Li & Fung USA to ensure a smooth transition for retail partners, vendors and employees.

The company also announced that it will incorporate Stamp 10 and Tint product into the Axcess and Liz & Co. lines, respectively, to help boost business at Kohl's and JCPenney. It has also decided to discontinue its First Issue business at Sears by the end of 2007.

"While this is only the first phase of the strategic review process, we are pleased with the outcome. Li & Fung is a terrific company that will nurture these businesses, seek to provide jobs for many of hte associates working on these brands and enable the transition from Liz Claiborne with minimal disruption to the business," stated William L. McComb, ceo of Liz Claiborne Inc.

"We are pleased to have reached this agreement with Liz Claiborne and will use these well established brands to expand our proprietary brand portfolio," said Li & Fung USA president Rick Darling. "Everyone involved at Liz Claiborne has shown genuine concern for the various stakeholders affected by this phase of their strategic review, including the retailers, the employees that have worked hard to develop the brands and the integrity of the brands themselves. It has been a very professional and cooperative effort and we now look forward to reinvigorating and growing the brands at retail."