Signal Apparel Company (OTCBB:SIAY) today reported $38.4 million in sales for the quarter ended March 31, 2000, compared to sales of $33.4 million in the first quarter of 1999. The company reported a net loss of $5.4 million, or $0.10 a share for the first quarter. This compares to a loss of $3.6 million and $0.10 per share in the first quarter of 1998.

Statements contained in this release that are not based on historical fact are ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. The risk factors and cautionary statements identifying important factors that could cause actual results to differ materially from those in the forward-looking statements are detailed in the Company's 10-K filing and other filings with the Securities and Exchange Commission.

SIGNAL APPAREL COMPANY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
     
 
Three Months Ended
 
March 31,
April 3,
 
2000
1999
     
Net Sales
$38,400
$33,418
Cost of Sales
29,328
24,765
 
Gross Profit
9,072
8,653
Royalty Expense
1,445
1,986
Selling, General and Administrative Expenses
7,852
7,009
Interest Expense
4,206
3,298
Other Income, net
(31)
 
Loss Before Income Taxes
(4,431)
(3,609)
Income Taxes
0
0
 
Net Loss
(4,431)
(3,609)
Less: Preferred Stock Dividends
997
0
 
Net Loss Applicable to Common Stock
($5,428)
($3,609)
 
Weighted Average Shares Outstanding,
Basic and Diluted
53,352
36,591
Basic/Diluted Net Loss Per Share
($0.10)
($0.10)