Tag-It Pacific, Inc. (AMEX:TAG), one of the world's leading single-source provider of trim to the apparel industry, announced today it has entered into a ten-year exclusive license and distribution agreement with Talon, Inc., a pioneer and leading manufacturer of a broad line of "Talon" brand zippers for the world market. Tag-It Pacific has become the exclusive sales, marketing, distribution and e-commerce arm for Talon products for all customers in the United States, Mexico based Maquilladoras, Canada and the Pacific Rim. Additionally, Tag-It has been granted an exclusive license to market trim products under the "Talon" brand. With an over 100-year reputation for quality, innovation and state-of-the-art products, Talon is a leading zipper brand with the second largest world market share. The market for zippers within large brand apparel manufacturers in North America and the Pacific Rim is in excess of $500 million annually.

Colin Dyne, Chief Executive Officer of Tag-It Pacific said, "Talon is the 2nd largest approved manufacturer for large brand apparel manufacturers in North America and the Pacific Rim, yet due to several changes in ownership this premier brand is currently garnering less than 5% of this market. We believe Talon's has enormous brand equity and produces superior products. Tag-It sees substantial potential in re-launching and reinvigorating the brand as well as our ability to leverage the brand name through new trim products and line extensions. We also look to leverage our strong position in the Mexico denim and twill markets where Talon has little market penetration, to offer our customers there this premier zipper brand within our turnkey trim packages.

"We are very pleased to align ourselves with the Gicisa/Iusa group, a world class group of companies, and expect this agreement to benefit Tag-It in multiple respects, most clearly in its revenue contribution beginning in the second half of this year. Longer-term, the product line and Talon brand should further cement our position as a premier one-stop destination for all of our customers' trim needs. Additionally, we view Talon's presence within the automotive and furniture industries as providing an additional longer term opportunity to develop new markets for our core business."

Mr. Dyne added, "The Talon relationship, in addition to our recent alliance with The Virkler Company, a leading manufacturer of innovative chemicals and processes for textiles and apparel, reflects Tag-It's commitment to being a true `one-stop shopping' resource for apparel customers. We believe that this product breadth, combined with our proprietary Tag-It Turnkey(TM) business-to-business e-commerce infrastructure, puts Tag-It in an enviable competitive position to serve apparel manufacturers in major markets, with particular emphasis on the rapidly growing markets in Mexico and in the Pacific Rim."

In exchange for exclusive distribution rights for the next decade, Tag-It has issued 850,000 shares of restricted convertible preferred stock to Talon's parent company, by Grupo Industrial Cierres Ideal S.A. After a period of 30 months, the shares will be convertible into Tag-It common stock once the average closing share price of Tag-It's common stock reaches or exceeds $8.00.

About Talon, Inc.
Founded in 1891. Talon, Inc. is a leading producer of a broad array of zipper products for the apparel, handbag sportswear, luggage, automotive and furniture industries. Talon's world class manufacturing facilities produce metal, nylon and injection molded zippers in a wide variety of sizes and colors. Talon's zippers are used in a variety of products including footwear, luggage, wet suits, slipcovers, outerwear and automotive air bags and upholstery. Talon is controlled by Grupo Industrial Cierres Ideal S.A. (GICISA), a major trim manufacturer. GICISA is a subsidiary of Grupo IUSA, a large, closely-held industrial conglomerate.

About Tag-It Pacific
Tag-It Pacific is a single-source provider of complete brand identity programs and products as well as Web-based distribution and logistics systems to manufacturers of fashion driven apparel and to the licensed consumer product industries. The Company designs, produces and distributes woven and leather labels, paper-hanging and bar-coded tags, metal jeans buttons and sewing thread, and zippers and custom shopping bags, as well as high-quality paper-wrapped metal and injection-molded boxes. Tag-It Pacific also designs and/or manufactures products for a variety of major brand and private label oriented companies including Calvin Klein, Guess?, Tarrant Apparel, Tommy Hilfiger, Sony Signatures, Warner Bros. and Carole Little, among others.