NEW YORK, Dec. 2 /PRNewswire-FirstCall/ -- As announced yesterday, Jones Apparel Group, Inc. (NYSE: JNY) has completed its acquisition of 100% of the common stock of Kasper A.S.L., Ltd. ("Kasper"). The purchase price consists of $221.0 million in cash and is subject to certain post-closing adjustments, including an adjustment based on closing working capital.

Peter Boneparth, Chief Executive Officer, stated, "We are very positive about this acquisition and look forward to the many opportunities that will present themselves now that Kasper is part of Jones Apparel Group. The addition of such highly-recognizable brands as Kasper, Anne Klein, Albert Nipon and LeSuit to our existing portfolio is an important component of our growth strategy."

Mr. Boneparth added, "I would like to welcome the Kasper team, which involves many talented associates, to Jones Apparel Group. Together, with a common focus, we intend to profitably grow the Kasper group of brands for the long-term benefit of our shareholders."

Wesley Card, Chief Operating and Financial Officer, commented, "We expect Kasper to add $415 to $435 million in 2004 net revenues to our previous net revenue forecast of $4.0 billion, and approximately $.15 of earnings per share to our previous 2004 earnings forecast of $2.25 to $2.50, thereby increasing forecasted 2004 earnings per share to a range of $2.40 to $2.65. Our revised 2004 guidance does not reflect the impact of possible financial transactions, such as stock repurchases and changes to our capital structure, or of additional acquisitions. As previously reported, we funded this acquisition with cash and project a net funded debt to book capitalization ratio of approximately 22% at December 31, 2003."

Company management will host a conference call to discuss this announcement today at 9:00 am eastern time, which is accessible by dialing 412-858-4600 or through a webcast at www.jny.com.

Jones Apparel Group, Inc. (www.jny.com), a Fortune 500 Company, is a leading designer and marketer of branded apparel, footwear and accessories. The Company's nationally recognized brands include Jones New York, Polo Jeans Company licensed from Polo Ralph Lauren Corporation, Evan-Picone, Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Napier, Judith Jack, Kasper, Anne Klein, Albert Nipon and LeSuit. The Company also markets costume jewelry under the Tommy Hilfiger brand licensed from Tommy Hilfiger Corporation and the Givenchy brand licensed from Givenchy Corporation, and footwear and accessories under the ESPRIT brand licensed from Esprit Europe, B.V. Celebrating more than 30 years of service, the Company has built a reputation for excellence in product quality and value, and in operational execution.

Certain statements herein are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements represent the Company's expectations or beliefs concerning future events that involve risks and uncertainties, including the strength of the economy and the overall level of consumer spending, the performance of the Company's products within the prevailing retail environment, and other factors which are set forth in the Company's 2002 Form 10-K and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. 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.