NEW YORK--(BUSINESS WIRE)--July 22, 1999--

Aris Industries, Inc. (OTC BB: AISI) and Lola, Inc., which owns the brand and trademark for XOXO, today announced they have signed a definitive agreement for Aris to purchase 100% of Lola's common stock and assets.

The transaction is anticipated to be finalized during August following normal Hart Scott Rodino clearance. Aris and Lola previously announced the signing of a letter of intent on May 6, 1999.

"It has been our strategy to use Aris as a platform to help expand existing strong brand names. The acquisition of Lola and the XOXO brand name, along with the recently announced licensing agreement with Stetson, complements this strategy," said Arnold S. Simon, Aris Industries Chief Executive Officer. "The Lola purchase makes sense for Aris because it fits well with our plan to expand the diversity of Aris Industries and enables us to utilize our experience in women's apparel."

Lola, Inc. is based in Los Angeles and owns the XOXO trademark and worldwide licensing rights and has 11 current licensees in various product categories that complement the Company's core brands. XOXO is one of the most successful, well-recognized and fastest moving lines of young contemporary apparel. It is distributed in major department and specialty stores. The Company also operates three freestanding retail stores and is expecting to open a fourth store on Rodeo Drive in Beverly Hills in October. Lola will continue to operate as an independent unit under the leadership of its current Chief Executive Officer, Gregg Fiene. Mr. Fiene will become CEO of Aris' operating subsidiaries with responsibilities for all women's divisions and will be nominated to the Aris Board of Directors as Vice Chairman.

Separately, Aris had also recently announced a licensing agreement with John B. Stetson Company, based in Mount Kisco, NY, to design, manufacture and market a full line of men's, women's and children's casual apparel and to establish free-standing retail stores worldwide. The two companies formed an autonomous subsidiary, Stetson Clothing Company Ltd., specifically created to develop Stetson-inspired casual apparel.

Aris Industries designs and imports "Members Only" and private label men's outerwear and sportswear, as well as "FUBU" boy's sportswear and men's loungewear, "Perry Ellis" men's, "Perry Ellis America" men's outerwear and loungewear, boy's outerwear and sportswear. It is also the licensor of other "Members Only" products domestically and internationally and the exclusive worldwide licensor of Stetson inspired casual apparel.