GUESS RECENT DEVELOPMENTS
Two decades after the birth of the first GUESS? jean, the company continues to be guided by the Marciano brothers. GUESS? derives its net revenue from the sale of GUESS? men's and women's apparel and licensed products, through its network of retail and factory stores primarily in the United States and Canada, through its online store at www.GUESS.com, from worldwide sale to wholesale customers and distributors, and from net royalties from worldwide licensing activities.

As it progresses into the 21st century, GUESS? continues to challenge its already high standards in order to remain a driving force in the world of fashion. Now a $1.2 billion multinational retailer, GUESS? sells clothing and accessories to enhance the casual lifestyle of people with a flair for individualism.

In the fall of 2000, GUESS? Inc. introduced GUESS Premium, a complete line of superior men's and women's jeanswear. Using the highest quality ring spun denim imported from Italy, and utilizing European designs, this line stands alone in the saturated industry of denim. GUESS Premium can be purchased in select GUESS? retail stores or on www.GUESS.com.

In the fall of 2003, GUESS? Inc. announced a collaboration with Parlux Fragrances, Inc. in the development and distribution of a GUESS? fragrance collection. The collection will reflect the GUESS? image, and will complement its customers' relaxed, sexy lifestyle. The fragrance line is a welcome addition to the fashion giant's licensed product family, and it will work to uphold GUESS? as a complete lifestyle brand.

In the Summer of 2004, GUESS? Inc. launched its first ever brand extension, Marciano. Marciano follows suit in true GUESS style with apparel and accessories that are on the edge of the fashion forefront. Daringly sexy, yet highly sophisticated, Marciano represents pure glamour in everyday fashion. Marciano boutiques will be opening in major metropolitan cities throughout North America. You can also find the Marciano collection in select flagship GUESS store locations, specialty stores, and online at www.marciano.com.

Most recently, GUESS? launched its new innovative, freestanding GUESS? Accessory stores which focus on a complete range of products for both men and women including luggage, handbags, watches, eyewear, and small leather goods. The first GUESS? Accessory store opened its doors on September 15, 2004 at The Grove in Los Angeles, California. Since then, there has been no slowing down, as two more stores launched domestically, and nine internationally including Italy and Lebanon, with many more under way both in the United States and abroad.