Donnkenny, Inc. (Nasdaq: DNKY) today announced that it has entered into arrangements to acquire the business currently being conducted by Ann Travis, Inc.

Daniel H. Levy, CEO of the Company, stated that the Company is very excited about its plans to distribute women's large sizes apparel under the Delta Burke label. Mr. Levy commented that this was an exciting step for Donnkenny. After over three years of rebuilding Donnkenny and recently completing significant cost reductions and efficiency changes, Donnkenny is embarking on a program to build its core businesses and pursue a further growth program through strategic acquisitions. Mr. Levy added that while the growth program would start off with modest objectives, it signals a positive change in the Company's direction. Mr. Levy noted that the Ann Travis acquisition would be accretive to earnings within the first six months since Donnkenny's existing back office and sales support could handle much of the increased Ann Travis business. Mitch Winter and Scott Yellin, formerly of Ann Travis, Inc., have agreed to join Donnkenny.

Donnkenny designs, manufactures, imports and markets a broad line of women's sportswear. The Company's major labels include Victoria Jones®, Casey & Max®, Pierre Cardin®, and Donnkenny®.

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include a softening of retailer or consumer acceptance of the Company's products or pricing pressures and other competitive factors. These and other risks are more fully described in the Company's 10-K and 10-Q filings with the Securities and Exchange Commission.