The Warnaco Group (NYSE: WAC) today announced its financial results for the second quarter and first half of fiscal 2000, the period ended July 1, 2000.

The Company previously reported that it expects operating earnings for fiscal 2000, before charges and investments gains, to be in the range of $0.26 to $0.36 per share, and that it had received commitments from its lead banks to amend and extend up to $2.9 billion of existing financing facilities through August 12, 2002. Warnaco said that upon satisfaction of the closing conditions to and completion of the planned transactions, the Company will have no material debt maturities or principal amortization prior to August 2002. The amending facilities will be secured by assets owned by Warnaco and its subsidiaries. The lead banks include holders of approximately $1.7 billion of the Company's worldwide debt facilities.

Second Quarter Results:

For the second quarter of fiscal 2000, net income, before a previously announced special charge, was $7.5 million, or $0.14 per diluted share on a weighted average of 54.8 million shares outstanding, on net revenues of $596.6 million. Including the special charge which related to its previously announced global operating initiatives, the Company's net loss in the second quarter of fiscal 2000 was $62.4 million, or a loss of $1.18 per share on a weighted average of 52.8 million shares outstanding. Net income for the year-ago second quarter was $27.8 million, or $0.49 per diluted share on a weighted average of 57.2 million shares outstanding, on net revenues of $484.7 million.

First Half Results:

Net income for the six-month period of fiscal 2000, before the charge taken in the second quarter and the investment income taken in the first quarter, was $13.7 million, or $0.25 per diluted share on a weighted average of 54.1 million shares outstanding, on net revenues of $1,203.5 billion. Including the charge and investment income, the Company's net loss in the first half of fiscal 2000 was $33.8 million, or a loss of $0.64 per share on a weighted average of 52.8 million shares outstanding. Net income for the fiscal 1999 first half was $50.7 million, or $0.87 per diluted share on a weighted average of 58.3 million shares outstanding, on net revenues of $928.8 million.

Linda J. Wachner, chairman and chief executive officer, said, "Warnaco is well-positioned in this difficult period for the apparel industry and our long-term future based on our strong brand position and cash flow. Our company has a sound base of core basic apparel products, which provides us with a strategic foundation to expand market share through new product opportunities. As we have reported, we are taking a series of steps aimed at restoring our Company's stable operating and financial history which Warnaco has demonstrated for well over a decade. When completed, we feel confident that our efforts in fiscal 2000 will result in improved financial performance for Warnaco in fiscal 2001 and the years to follow."

As part of the July 20, 2000 announcement, Warnaco reported that the closing of the new facility agreements with its lenders are subject to customary financing conditions, to the completion of bank debt amendments by the holders of the Company's committed and bilateral financing facilities including approval of the amendments by the requisite lenders, the execution of appropriate documentation, the satisfactory completion of confirmatory due diligence by the bank agents, and the absence of any material adverse change in Warnaco and its subsidiaries taken as a whole. Warnaco also has completed interim agreements anticipated in the July 20, 2000 announcement which waive certain requirements in various of its existing debt facilities. The Company said that the interim agreements are effective through September 30, 2000 and that it expects to close the refinancing transactions previously announced prior to that time. Prior to closing, Warnaco will utilize bilateral trade facilities for its normal trade and letter of credit requirements.

The Warnaco Group, Inc has its headquarters in New York and is a leading manufacturer of intimate apparel, menswear, jeanswear, swimwear, men's and women's sportswear, better dresses, fragrances and accessories sold under such brands as Warner's®, Chaps by Ralph Lauren®, Calvin Klein® men's, women's, and children's underwear, men's accessories, and men's, women's, junior women's and children's jeans, Speedo®/Authentic Fitness® men's, women's and children's swimwear, sportswear and swimwear accessories, and Polo by Ralph Lauren (R) women's and girls' swimwear.