NEW YORK--(BUSINESS WIRE)--Delta Galil Industries, Ltd. (DELT/Tel Aviv Stock Exchange, DELTY.PK/OTCQX), the global manufacturer and marketer of branded and private label apparel products for men, women and children, today announced, pursuant to Section 36a of the Israeli Securities Law Regulations (Periodic and Immediate Statements) – 1970, and in response to the article published at the Globes newspaper’s website on October 10, 2011 (hereinafter, the "Publication"), that it is currently negotiating an agreement to purchase the jeanswear business of The Jones Group Inc. including several of its owned brands the working capital, tangible property used in said business and a licenses to certain other brands related to the jeanswear business.

Delta Galil estimates that the purchase price in the transaction will be an aggregate amount between 350 and 400 million USD. The purchase price may be adjusted above or below the said range following the conclusion of the negotiations and depending on the level of net working capital and additional adjustments.

It should be noted that the parties are still negotiating the terms of the transaction and that any definitive agreement between the parties, if and to the extent executed, may include different terms than those detailed above. There is no assurance that the negotiations will result in a definitive agreement being executed. The execution of a definitive agreement is subject, inter alia, to the conclusion of the negotiations with Jones Group and receipt of all required approvals by the parties. In addition, the execution of a definitive agreement is subject to the conclusion of the negotiations of financing arrangements between the Delta Galil and the Israeli and US financing banks

Delta Galil estimates that the negotiations with Jones Group and the banks will be concluded or terminated within a month.

The submission of a report concerning the negotiations was delayed to date, in accordance with the terms of Section 36(b) of the Securities Law Regulations (Periodic and Immediate Statements) – 1970, and pursuant to Delta Galil’s Board resolution that publication of the negotiations may prevent the completion of the transaction or significantly worsen the terms thereof.

If and when a definitive agreement is executed, Delta Galil shall submit an immediate report as to the details thereof, as required by law.

This report does not refer to the accuracy of all other details mentioned in the Publication, which do not directly relate to the negotiations with Jones Group.

Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, the Company has continually strived to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. Delta develops an eclectic offering of made-to-order products, including intimate apparel for women; extensive lines of underwear for men; innovative bras and socks; babywear, leisurewear and nightwear; knitted fabrics, elastic ribbons, trimmings and a variety of other basic apparel materials. Product range includes ready-to-wear, outerwear, intimate apparel.

Safe Harbor Statement:

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

* Release translated from the Hebrew.

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