Enters into Joint Venture Agreement with Rachel Roy, Damon Dash and TSM Capital, LLC

Opportunities to Expand Rachel Roy Brand

NEW YORK, June 12 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc. (NYSE: JNY) ("Jones" or the "Company") today announced that it has formed a joint venture with Rachel Roy, Damon Dash and TSM Capital, LLC to develop, market and license the New York-based fashion brand, Rachel Roy. Under the terms of the agreement, Jones owns 50% of the joint venture interest. The remaining interest is owned by the two founders, Rachel Roy and Damon Dash, as well as TSM Capital which acquired a minority stake in the business last November. Jones will assume operations of the existing designer collection business under license with the new joint venture.

Rachel Roy launched her label in spring of 2005. Effortlessly elegant and modern are adjectives that can be used to describe both the collection and the woman, Rachel Roy. With striking silhouettes, a refined color palette and inventive pairings that transition from day to evening, Rachel Roy embodies everything for women who embrace fashion and dress with confidence and sophistication. The line is currently available in premier luxury department and select specialty stores in the United States, including Bergdorf Goodman, Neiman Marcus, Nordstrom and Saks, and internationally in the United Kingdom, Hong Kong, the United Arab Emirates, Kuwait, South Korea, Canada, Turkey and Indonesia.

Wesley R. Card, Jones Apparel Group President and Chief Executive Officer, said, "Rachel Roy is a gifted design talent and represents the new wave of modern fashion. We look forward to working closely with Rachel and Marvin's team as we invest in the Designer business and explore opportunities to broaden her reach to a larger audience. We see tremendous opportunity in Rachel Roy as a designer and brand; we welcome her and her team to Jones."

Marvin Traub, one of TSM's founders, said, "We are pleased with the success of the Rachel Roy brand since investing in the company in November 2007. We believe Rachel is an exciting fashion designer and Jones will be the ideal partner to take the brand to the next level, both domestically and internationally. I am very pleased that we have been able to enter into a joint venture agreement with Jones only six months after completing our initial investment in Rachel Roy. I very much look forward to working with Jones to further develop the Rachel Roy brand."

Founder and artistic director, Rachel Roy, said, "TSM is an excellent partner, and I am excited to be part of a leading American company like Jones, which shares my commitment to quality and innovation. I am excited for the future and to uncover the label's full potential."

Partner, Damon Dash, said, "Both Rachel and her clothing appeal to many audiences around the world, making her a widely renowned design talent. Through this partnership, we will be able to explore new opportunities for Rachel Roy, the brand."

The Company noted that Rachel Roy and her team will work with Susan Metzger, Chief Executive Officer of the Women's Wholesale Sportswear division. Ms. Metzger will be responsible for the operations of the business.

Susan Metzger added, "I am thrilled that Rachel and her team are joining Jones, and I look forward to working directly with them."

The joint venture partners plan to further develop the successful Rachel Roy brand through continued global expansion of the wholesale business, introduction of new product categories, and stand-alone retail stores in key U.S. and international locations. Rachel Roy will continue to lead the design, manufacturing and production of the brand. Additional terms of the transaction were not disclosed.

About Jones Apparel Group, Inc.

Jones Apparel Group, Inc. (http://www.jny.com) is a leading designer, marketer and wholesaler of branded apparel, footwear and accessories. The Company also markets directly to consumers through its chain of specialty retail and value-based stores. The Company's nationally recognized brands include Jones New York, Nine West, Anne Klein, Gloria Vanderbilt, Kasper, Bandolino, Easy Spirit, Evan-Picone, l.e.i., Energie, Enzo Angiolini, Joan & David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Albert Nipon and Le Suit. The Company also markets costume jewelry under the Givenchy brand licensed from Givenchy Corporation and footwear under the Dockers Women brand licensed from Levi Strauss & Co. Each brand is differentiated by its own distinctive styling, pricing strategy, distribution channel and target consumer. The Company contracts for the manufacture of its products through a worldwide network of quality manufacturers. The Company has capitalized on its nationally known brand names by entering into various licenses for several of its trademarks, including Jones New York, Evan-Picone, Anne Klein New York, Nine West, Gloria Vanderbilt and l.e.i., with select manufacturers of women's and men's products which the Company does not manufacture. For more than 30 years, the Company has built a reputation for excellence in product quality and value, and in operational execution.

About Rachel Roy

Founded in 2004, by existing shareholders Rachel Roy and Damon Dash, the Rachel Roy collection embodies effortless glamour, and is sophisticated with a modern edge. In 2007, Rachel Roy was inducted as a new member to the Council of Fashion Designers of America. The Rachel Roy collections are available at Saks Fifth Avenue, Bergdorf Goodman, Neiman Marcus, Nordstrom and designer specialty stores worldwide. For more information, please visit www.rachelroy.com.

About TSM Capital, LLC

TSM Capital was founded in 2007 by Marvin Traub, Mortimer Singer and Aslaug Magnusdottir. The company specializes in investments in early stage apparel, accessories, jewelry, cosmetics and home furnishing brands and retailers in the U.S. and internationally. TSM Capital is headquartered in New York. Special advisor to TSM Capital on marketing, PR and styling is Lauren Davis, contributing editor and stylist. In August 2007, TSM Capital announced its first transaction, which involved an investment in British designer brand Matthew Williamson.

About Damon Dash

At 37-years-old, Damon Dash has constructed a business empire, which began with the powerhouse Roc-A-Fella Records, signing artists Jay-Z and Kayne West among numerous others. Dash then started Rocawear and has since spurred the creation of a number of influential brands. His portfolio includes apparel, entertainment, publishing, film, spirits, automotive and a non-profit community outreach foundation. An enviable figure with his peers, business leaders and aspiring entrepreneurs, a key to Dash's success is his ability to reach a cross-section of cultures and audiences. Dash has evolved from a music mogul to become an international businessman.

Forward Looking Statements

Certain statements contained herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding the Company's expected financial position, business and financing plans are forward-looking statements. The words "believes," "expect," "plans," "intends," "anticipates" and similar expressions identify forward-looking statements. Forward-looking statements also include representations of the Company's expectations or beliefs concerning future events that involve risks and uncertainties, including:

• those associated with the effect of national and regional economic conditions;
• lowered levels of consumer spending resulting from a general economic downturn or lower levels of consumer confidence;
• the performance of the Company's products within the prevailing retail environment;
• customer acceptance of both new designs and newly-introduced product lines;
• the Company's reliance on a few department store groups for large portions of the Company's business;
• consolidation of the Company's retail customers;
• financial difficulties encountered by customers;
• the effects of vigorous competition in the markets in which the Company operates;
• the Company's ability to attract and retain qualified executives and other key personnel;
• the Company's reliance on independent foreign manufacturers;
• changes in the costs of raw materials, labor, advertising and transportation;
• the general inability to obtain higher wholesale prices for the Company's products that the Company has experienced for many years;
• the uncertainties of sourcing associated with an environment in which general quota has expired on apparel products (while China has agreed to safeguard quota on certain classes of apparel products through 2008, political pressure will likely continue for restraint on importation of apparel);
• the Company's ability to successfully implement new operational and financial computer systems; and
• the Company's ability to secure and protect trademarks and other intellectual property rights.

A further description of these risks and uncertainties and other important factors that could cause actual results to differ materially from the Company's expectations can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2007, including, but not limited to, the Statement Regarding Forward-Looking Disclosure and Item 1A-Risk Factors therein, and in the Company's other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such expectations may prove to be incorrect. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

SOURCE Jones Apparel Group, Inc.

CONTACT: John T. McClain, CFO of Jones Apparel Group, +1-212-642-3860;
Aslaug Magnusdottir, Managing Director of TSM Capital, LLC, 1+646-723-2973,
amagnus@marvintraub.com; Debra Thom of HL Group for Rachel Roy, +1-212-529
5533, dthom@hlgrp.com; or Joele Frank and Sharon Stern, both of Joele Frank,
Wilkinson Brimmer Katcher, +1-212-355-4449 /
/Web site: http://www.jny.com
http://www.rachelroy.com /
(JNY)