Jones New York

Through 1984, Jones was very profitable, but beginning in 1985 and running through 1987, Jones incurred net losses. A subsequent turnaround was extremely successful as Jones returned to profitability in 1988 commenced its rapid growth.

On May 15, 1991, Jones became a public company with a listing on the New York Stock Exchange. Growth continued as record sales and profits were announced in each subsequent year, with Jones reaching the $1 billion sales level in 1996.

In 1993, Jones purchased the Evan-Picone label.

In 1995, Jones Apparel Group established a licensing agreement with Polo Ralph Laruen Corporation that resulted in the enormously successful Lauren by Ralph Lauren line.

In October 1998, Jones announced its first major acquisition � the purchase of Sun Apparel, Inc. of El Paso, Texas. Sun is a designer, manufacturer and distributor of jeanswear, sportswear and related apparel for men, women and children. Sun markets products under the Polo Jeans Company brand, licensed from polo Ralph Lauren Corporation, as well as other owned, licensed and private label brands.

Jones concurrently announced its first public debt offering of both $265 million in senior notes due 2001 and a $550 million bank credit facility to finance the acquisition as well as for working capital, general corporate and trade letter of credit requirements.

In 1999, Jones introduced a sportswear line for woman age 16 to 24 under the licensed Ralph by Ralph Lauren brand. In June 1999, Jones completed the acquisition of Nine West Group Inc.

In April 2000, Jones acquired the Canadian licenses for several Polo Ralph Lauren brands, including polo Jeans Company, Polo by Ralph Lauren, Polo Sport for Men, and Polo Golf.

In July 2000, Jones completed the acquisition of Victoria + Co Ltd. Victoria is a leading designer and marketer of branded and private label costume jewelry.

In June 2001, Jones completed the acquisition of McNaughton Apparel Group Inc. McNaughton designs, markets and contracts for the manufacture of broad line of brand name, moderately-priced women�s and juniors� career and casual clothing.

In April 2001, Jones completed the acquisition of Judith Jack, LLC. Judith Jack is a manufacturer and distributer of women�s jewelry, including marcasite and sterling silver products.

In April 2002, Jones completed its acquisition of Gloria Vanderbilt Apparel Group. Gloria Vanderbilt is a leading designer, marketer and distributor of women�s moderately priced stretch and twill jeanswear.

In August 2002, Jones completed its acquisition of of RSV Sport, Inc. and its related companies, herein referred to as l.e.i. l.e.i. is a leading designer manufacturer and distributor of girls� and young women�s moderately-priced jeanswear.

In August 2003, Jones Apparel Group completed its strategic acquisition of Kaser, Ltd. as part of its global multiproduct, multi-channel diversification strategy. Kasper, Ltd. is a leading marketer and manufacturer of women�s suits and sportswear.

Form its original Pennsylvania and new York locations, Jones has grown to include warehouses and offices in Canada, Mexico, New Jersey, Tennessee, Texas, Delaware, North Carolina and Virginia. By the end of 2003, Jones employed over 17,000 full-time and 4,500 part-time people worldwide.