VALHALLA, N.Y.--(BUSINESS WIRE)--April 30, 2003--Candie's, Inc. (NASDAQ: CAND) ("Candie's" or the "Company") today announced that it has reached an agreement with the United States Securities and Exchange Commission (the "Commission") to settle the Commission's previously disclosed investigation of the Company.

The agreement settles allegations regarding matters that have been under investigation by the Commission since July 1999. These matters were also the subject of a previously disclosed internal investigation completed by a Special Committee of the Board of Directors of the Company in August 1999, which culminated in the Company's September 1999 restatement of the financial statements in its Form 10-K for the fiscal year ended January 31, 1998 and its Forms 10-Q for the first three quarters of the fiscal year ended January 31, 1999. Candie's Chief Executive Officer, Neil Cole, has also reached a settlement with the Commission.

The respective administrative cease and desist orders that will be entered in accordance with the settlements allege the use of fraudulent accounting practices by certain former members of Candie's senior management from August 1997 until the Spring of 1999. Pursuant to its settlement, the Company, without admitting or denying any of the Commission's allegations, has consented to the entry of an administrative order to cease and desist from violations of the books and records, internal controls, periodic reporting and anti-fraud provisions of the Securities Exchange Act of 1934 (the "34 Act") and the anti-fraud provisions of the Securities Act of 1933. The order recognizes the Company's cooperation with the Commission's Staff and its prompt implementation of remedial measures. No civil monetary penalty will be imposed against the Company.

Pursuant to the terms of his settlement, Mr. Cole, without admitting or denying the Commission's allegations, has consented to an administrative order to cease and desist from violating or causing the violation of certain books and records, internal controls and periodic reporting provisions and the anti-fraud provisions of the '34 Act. Mr. Cole will also pay a $75,000 fine.

Deborah Sorell Stehr, the Company's Senior Vice President, Secretary and General Counsel commented: "The Company's settlement recognizes both our prompt remediation and full cooperation with the Commission's Staff and will enable Candie's to put this investigation behind it and to continue to move forward in a positive direction."

About Candie's Inc.

Candie's, Inc. is a leading designer and marketer of young women's footwear under the Candie's and Bongo brands and jeans wear under the Bongo brand through its wholly owned subsidiary, Unzipped Apparel, LLC. The Company distributes its products under the Candie's and Bongo brand names through department and specialty stores nationwide, as well as through company-owned stores and specialty stores internationally. Additionally, the Candie's brand is licensed for the manufacture and sale of apparel, swimwear, fragrances, eyewear and watches, and the Bongo brand is licensed for womens' and kids' apparel, sportswear, cold weather accessories, swimwear, belts, eyewear, jewelry and watches. Candie's, Inc. operates its website at http://www.candies.com. For investor information please visit the corporate web site at http://www.candiesinc.com.

CONTACT:
Candie's, Inc.
Richard Danderline, 914/749-2912
rdanderline@candiesinc.com
SOURCE: Candie's, Inc.