August 10, 2002

Master Licensee Will Open Mudd Retail Stores—Top youth brand, Mudd, will launch in Asia in August 2002. Mudd signed the deal with Worth Pacific Holdings, Ltd. (WPH). Brokered by Ingroup Licensing, Mudd’s exclusive licensing agency, Steven Seidman, chairman of Ingroup, and Angela Lu, Chairman of WPH, made the announcement.

Mudd is one of the leading youth brands in the US, with wholesale sales in excess of 500 million annually. According to Seidman and Lu, “This is the first time Mudd will have stand-alone stores. These shops will offer all of Mudd’s lifestyle accessories and fashions; many of our domestic licensees will provide product for the franchised stores.”

Franchisees previewed the line in late May at a fashion show in Guangzhou. According to Lu, “We approach this vast Asian market with a network of fashion retailing expertise supported by a core management team and over 10 local distributors and franchisees in Hong Kong, China, Taiwan, South Korea, Japan, Thailand, Singapore, Malaysia and Indonesia. Through franchise arrangements, we are capitalizing on local entrepreneurial talent and local relationships to achieve an aggressive growth rate for Mudd in Asia.”

The expansion will put Mudd in China, Hong Kong, Singapore, Japan, Malaysia, Taiwan, Korea, Indonesia, Australia, New Zealand, Cambodia, Thailand, Russia and Vietnam. The first six stores will open in Korea August 10, 2002. Stores will then open in China and Hong Kong. Denim will be produced in Asia, though franchisees will carry other products from Mudd’s 17 domestic licensees.

The Mudd denim line was founded in 1995 and has grown to include 19 domestic and international licensees ranging from shoes to home furnishings, which carry the Mudd name and create products in the Mudd image.

The house of Mudd creates clothing for trendsetters everywhere regardless of race, creed, color, sex or social status. Each style is as special as the person wearing it. Our name is Mudd.

Mudd Far East (a.k.a. WPH) is headquartered in Hong Kong and operates a regional office in Guangzhou, China. To help its franchisees adapt to the Mudd culture, and build and serve their local customer communities, Mudd Far East provides expert advice and a readily deployable program on retail management which covers staff training, store décor, merchandising and logistics.

Ingroup Licensing is the exclusive licensing agent for Mudd. Based in New York, Ingroup concentrates on developing fashion brands, with an emphasis on youth brands. Other clients include Plugg and Zena.