NEW YORK, May 12 /PRNewswire-FirstCall/ -- Candie's, Inc. (Nasdaq: CAND) ("Candie's") announced today that it has licensed the exclusive right to manufacture, sell and distribute footwear under the CANDIE'S brand to Steven Madden, Ltd. (Nasdaq: SHOO) ("Steve Madden"). Under the terms of the new license, Candie's will continue to ship footwear orders for Spring 2003 and Steve Madden will ship orders commencing Fall 2003.

Neil Cole, CEO and President stated, "We are very excited about this strategic relationship and believe it will capitalize on the strength of the CANDIE'S brand. By adding another powerful license to the CANDIE'S stable, which already includes Liz Claiborne, Inc. for fragrance and Gadzooks, Inc. for apparel, Candie's, Inc. can continue to build the CANDIE'S name into a mega-brand that is one of the most recognized in the junior arena."

Commenting on the impact of the CANDIE'S footwear license on the operations of the Company, Mr. Cole continued, "As a result of this license and the Company's license of BONGO footwear to Kenneth Cole Productions, Inc., which was announced last week, the Company has eliminated the cost and risk associated with footwear operations in favor of a licensing model that is poised to deliver increased profitability and value to our shareholders."

About Candie's, Inc.

Candie's, Inc. is in the business of licensing the Candie's name on a variety of young women's footwear, apparel and fashion products and is a leading designer, distributor and marketer of jeans wear under the Bongo brand through its wholly owned subsidiary, Unzipped Apparel, LLC. Candie's also arranges for the manufacture of footwear products for mass market and discount retailers under the private label brand of the retailer or other trademarks owned or licensed by Candie's. The Company also licenses the Bongo brand for women's and kids' apparel, sportswear, cold weather accessories, swimwear, belts, eyewear, jewelry and watches, and operates 21 Candie's retail stores. For investor information please visit the corporate web site at http://www.candiesinc.com .

Forward-Looking Statement Disclosure

The statements which are not historical facts contained in this press release are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to the risks detailed in the Company's Securities and Exchange Commission filings, and uncertainty associated with the impact on the company in relation to recent events discussed in the Company's form 10-K for fiscal 2002. Readers are cautioned not to place undue reliance on these forward-looking statements.

CONTACT:
Richard Danderline of Candie's, Inc.
1-914-769-8600