Innovo Completes Phase 1 Of Azteca Knit Acquisition

Innovo Group Inc., Knoxville, Tenn., has completed Phase I of its acquisition of certain assets of
Los Angeles-based Azteca Production International Inc.s Knit Apparel Division.Innovos subsidiary,
Innovo Apparel Inc. (IAI), purchased the customer lists, right to manufacture and market all
current products, non-compete and non-solicitation agreements, and other intangible assets from
Aztecas Knit Division. IAI will purchase the inventory under Phase II of the acquisition, and, in
addition, will hire certain employees of the Knit Division to assist in the management of IAI.

October 2001