John J. Pomerantz Remains with Company as Chairman of the Board

The Leslie Fay Company, Inc. (Nasdaq: LFAY) announced today that its Board of Directors has appointed John A. Ward, 46, Chief Executive Officer of the Company. He will also remain President of the Company, a position he has held since 1997. Mr. Ward joined Leslie Fay in 1989 where he held numerous positions prior to becoming President, including Chairman of the combined Leslie Fay Dress and Sportswear division. In his new position he will be responsible for the day-to-day operations of the Company. Prior to joining Leslie Fay, Mr. Ward held executive positions with Filene's and B.Altman.

John J. Pomerantz, 66, has been Chief Executive Officer of Leslie Fay since 1971 and will remain with the Company as Chairman of the Board, a position he has held since 1986. Mr. Pomerantz will be responsible for the Company's sales operations and its business development and strategy.

"We felt that this was a good time to shift the leadership of Leslie Fay. The Company is progressing well, and John is an excellent choice to take Leslie Fay to its next level. John brings over 25 years of industry experience to his new position and he has the highest respect of our employees, board and customers. We have worked with each other for over 10 years and I look forward to continuing our relationship," said John J. Pomerantz.

John A. Ward commented, "We are all excited about Leslie Fay's future. John has led us through some difficult and challenging times and as a result of his leadership the Company is well positioned to take advantage of a number of opportunities that will further its growth. John is one of most highly regarded people in our industry and I am happy that he will continue with Leslie Fay as Chairman of the Board. Working together I'm sure we will produce excellent results."

The Leslie Fay Company, Inc. sells its career, evening and social occasion dresses and its sportswear through leading department and specialty stores nationwide. The Company's moderate-priced brands include Leslie Fay -- one of the best-known trademarks in women's apparel -- Leslie Fay Haberdashery, Joan Leslie, and Reggio. Its "better" price brands include David Warren, Rimini by Shaw, Outlander Sportswear, and Hue. Leslie Fay is a licensee for the Liz Claiborne and Elisabeth dress labels and Cynthia Cynthia Steffe and Cynthia Steffe labels. The Company has operated continuously as an apparel company since its founding in 1947.

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Statements contained herein include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to, the uncertainty of potential manufacturing difficulties, the dependence on key personnel and customers, the possible impact of competitive products and pricing, the successful integration of the company's acquisitions, the Company's continued ability to finance its operations, and general economic conditions.