LOS ANGELES--(BUSINESS WIRE)--Jan. 17, 2003--Guess?, Inc. ("Guess?") today announced that its indirect wholly-owned subsidiary Guess? Royalty Finance LLC (the "Issuer") began to privately offer $75,000,000 of its Secured Notes Due 2011.

These notes will be secured by the assets of the Issuer, which will include the royalties payable under certain trademark licenses originally entered into by Guess? and Guess?'s wholly-owned subsidiary Guess? Licensing, Inc. ("Licensing"), who will transfer such licenses and all material trademarks of Guess? (and the related goodwill) to Guess? IP Holder L.P. ("IP Holder"), a wholly-owned subsidiary of Guess?, who will transfer the royalties to the Issuer. The notes will have the benefit of a payment guaranty issued by IP Holder, which will be secured by a security interest in all of the trademarks and goodwill transferred to IP Holder and in the relevant license agreements.

The purpose of the offering is to partially monetize the expected future royalty payments to be generated by the licensing business Guess? has established, by transferring ownership of such assets to IP Holder and Issuer and imposing certain limitations on Guess? with respect to these assets, and thereby to generate proceeds that can be used for general corporate purposes including the repayment of outstanding indebtedness.

The notes have not been and will not be registered under the Securities Act of 1933, as amended, and will not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes.

Guess?, Inc. (NYSE: GES) designs, markets, distributes and licenses one of the world's leading lifestyle collections of contemporary apparel, accessories and related consumer products.

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 availability of sufficient working capital, the successful integration of new stores into existing operations, the continued desirability and customer acceptance of existing and future product lines, possible cancellations of wholesale orders, the success of competitive products, the availability of adequate sources of capital and the ability to complete the $75 million notes offering. In addition to these factors, the economic and other factors identified in the Company's most recent annual report on Form 10-K for the fiscal year ended December 31, 2001 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.

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