Vanity Fair Implements Plan To Improve Profitability

Vanity Fair Corp., Greensboro, N.C., announced a series of actions to position the company to
achieve its long-term earnings growth target of 8 to 10 percent. Now is the time to take a hard
look at our portfolio of businesses and our operations and determine the optimal mix for the
future, said Mackey McDonald, president and CEO.Specifically, the company plans to exit
nonstrategic workwear businesses, implement a new jeans strategy in Japan, consolidate several
distribution centers in both the United States and Europe, reorganize the Latin American jeans
business and restructure its international intimates business to improve the profitability of its
discount store locations.In conjuction with these actions, the company will take a charge to
fourth-quarter earnings of approximately $120 to $140 million, or $0.68 to $0.79 per share. The
cash requirement related to these actions is approximately $40 million.

January 2001