Narciso Rodriguez to Regain Full Ownership of His Namesake Trademark and Business

Liz Claiborne Inc. to Cease Ongoing Investment in the Business

NEW YORK, Oct. 8 /PRNewswire-FirstCall/ -- Liz Claiborne Inc. (NYSE: LIZ) and Narciso Rodriguez today announced that they have agreed to terminate their business relationship initiated in May 2007. As a result of this agreement, Narciso Rodriguez will regain full ownership of the trademarks and business bearing his name. Liz Claiborne Inc. will provide certain limited transition services as the operations transfer fully to Narciso Rodriguez. The company is in the process of determining the impact of the non-recurring cash charges, which will be insignificant to the company's cash flows, and non-cash charges associated with this transaction. The operating results of the Narciso Rodriguez brand and the impact of this termination will be included as discontinued operations in the company's financial statements.

Commenting on the announcement, William L. McComb, Chief Executive Officer, Liz Claiborne Inc., said: 'We continue to believe Narciso is one of the great American designers and we have the utmost respect for his talent and creative abilities.'

Mr. McComb continued, 'Initially we both saw significant opportunities to develop the collection in multiple product categories, channels and geographies, but differences emerged as to how best to achieve this organic growth, and we have decided to terminate our business relationship by mutual agreement.'

Mr. Rodriguez said: 'I am pleased that Liz Claiborne Inc. and I have found a mutually beneficial agreement. Ownership of my trademark and the company will give me the ability to explore a multitude of new opportunities and realize our full potential as a luxury brand.'

About Liz Claiborne Inc.

Liz Claiborne Inc. designs and markets a global portfolio of retail-based premium brands including Kate Spade, Juicy Couture, Lucky Brand and Mexx. The Company also has a refined group of department store-based brands with strong consumer franchises including the Liz Claiborne and Monet families of brands, Kensie, Mac & Jac, Enyce and the licensed DKNY Jeans Group. For more information visit www.lizclaiborneinc.com.

SOURCE Liz Claiborne Inc.