LOS ANGELES, Sept. 19 /PRNewswire-FirstCall/ -- Guess?, Inc. (NYSE: GES) announced today that Guess?, Inc. and Fossil, Inc. have terminated negotiations for a global license agreement for Fossil to produce and distribute Guess? watches. Guess and Fossil were unable to reach agreement regarding certain material terms. On August 26, 2005, the two companies announced that they were in advanced negotiations for a global watch license.

Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, accessories and related consumer products. At August 27, 2005 the Company owned and operated 302 retail stores in the United States and Canada. The Company also distributes its products through better department and specialty stores around the world. For more information about the Company, please visit http://www.guess.com.

Except for historical information contained herein, certain matters discussed in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are only expectations, and involve known and unknown risks and uncertainties, which may cause actual results in future periods and other future events to differ materially from what is currently anticipated. Factors which may cause actual results in future periods to differ from current expectations include, among other things, the continued desirability and customer acceptance of existing and future product lines (including watches and other licensed product lines), the continued availability of sufficient working capital, the successful integration of acquisitions, new stores and new licensees into existing operations, possible cancellations of wholesale orders, the success of competitive products, the availability of adequate sources of capital, general economic conditions, competition, acts of terrorism or acts of war, government regulation, currency fluctuations and possible future litigation. In addition to these factors, the economic and other factors identified in the Company's most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission, including but not limited to the risk factors discussed therein, could affect the forward-looking statements contained herein and in the Company's other public documents.

     Contact:  Carlos Alberini
               President & Chief Operating Officer
               (213) 765-3582

               Frederick G. Silny
               SVP & Chief Financial Officer
               (213) 765-3289



SOURCE  Guess?, Inc.
    -0-                             09/19/2005
    /CONTACT:  Carlos Alberini, President & Chief Operating Officer,
+1-213-765-3582, or Frederick G. Silny, SVP & Chief Financial Officer,
+1-213-765-3289, both of Guess?, Inc./
    /Web site:  http://www.guess.com /
    (GES)

CO:  Guess?, Inc.; Fossil, Inc.
ST:  California
IN:  TEX FAS HOU
SU:  LIC

AA
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4856 09/19/2005 06:00 EDT http://www.prnewswire.com