Candie's, Inc (Nasdaq NMS symbol: CAND) today announced that it has entered into an exclusive apparel license agreement with Gadzooks, Inc.

Under the terms of the agreement, Gadzooks will exclusively offer categories of apparel and swimwear under the CANDIE'S label in Gadzooks specialty retail stores. Candie's apparel under license with Gadzooks will be available starting October 15, 2000.

Neil Cole, Candie's chairman and CEO stated, "This agreement is mutually beneficial to both companies. It brings Candie's closer to reaching its objective, which is to focus the company's in-house efforts on footwear and marketing, and allows Gadzooks to continue to build its branded apparel business.

"The licensing partnership with Gadzooks allows us to begin implementing a successful apparel strategy for the Candie's brand without the additional resources required to operate Candie's jeanswear through our apparel joint venture."

Commenting from Gadzooks, Paula Masters, senior vice president of merchandising stated, "The popularity of the Candie's brand fits in well with our branded apparel strategy. We continue to refine our national and teen brand name product assortments, and Candie's will compliment and strengthen our junior apparel offerings, which include DKNY Jeans and Guess."

About Candie's Inc

Candie's is a leading designer and marketer of young women's footwear, apparel and accessories. The company distributes its products through better department and specialty stores nationwide, as well as through seven company-owned stores and specialty stores internationally. Candie's Inc also owns and markets footwear, accessories and apparel under the Bongo trademark. 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. For investor information please visit the corporate web site at www.candiesinc.com.

About Gadzooks

Dallas-based Gadzooks, Inc is a specialty retailer of casual apparel and accessories for young men and women principally between the ages of 14 and 18. Established in 1983, Gadzooks operates 328 mall-based stores in metropolitan markets and in middle markets in 34 states East of the Rocky Mountains.