Tarrant Apparel Group

Tarrant is a leading provider of men's, women's and children's casual, private label apparel. The Company has strong relationships with specialty retail, mass merchants and national department stores including Chicos, Dillards, Federated Department Stores, J.C. Penny, K-Mart, Kohl's, Lerner New York, Sears, Mervyn's, Lane Bryant, Mother Works and Walmart. In addition, the Company produces finished garments for several international designer brands as well as it's own brand, American RAG CIE. Tarrant is a value-added supplier. We have an in-depth understanding of the fashion and pricing strategies of our customers, which we support with our own teams of expert designers, our sample-making capability, and our ability to assist customers in market-testing designs with quick-turnaround production of 'test-order' products. Recognizing the tremendous opportunity in the private brand business, Tarrant adopted a new strategy to focus on developing and building its private brands. In April 2003, we acquired an equity interest in the owner of the trademark "American Rag CIE," and our subsidiary, Private Brands, Inc., acquired a license to certain exclusive rights to this trademark. Private Brands also entered into multi-year exclusive distribution agreement with Federated Merchandising Group ("FMG"), the sourcing arm of Federated Department Stores, to supply FMG with American Rag CIE, a new casual sportswear collection for juniors and young men. Private Brands will design and manufacture a full collection of American Rag apparel in vintage inspired themes, which will be distributed by FMG exclusively to Federated stores across the country. Beginning in August of 2003, the American Rag collection is available in approximately 100 select Macy's, the Bon Marche, Burdines, Goldsmith's, Lazarus and Rich's-Macy's locations.