New Guess Facility

Hot off the press:

Guess?, Inc. (NYSE: GES) announced today that it has entered into a five-year $85 million secured multinational revolving credit facility with Bank of America. This new facility replaces the Company's existing asset-based facility with a group led by Wachovia Securities, Inc., which had an initial term through September 27, 2006.

Commenting on the announcement, Carlos Alberini, President and Chief Operating Officer, stated, "During this process, we have developed a strong relationship with Bank of America. We are very pleased with the terms of the new facility. The arrangement is less costly than the previous credit facility and includes more favorable terms, which capitalizes on the strong financial performance that the Company has delivered over the past few years."

Mr. Alberini continued, "This facility, along with the Company's operating cash flows and strong cash position are expected to provide ample liquidity and financial flexibility to meet the Company's planned operating and strategic needs."

At the time of closing, there were no borrowings due under the old credit facility other than as a result of normal trade letter of credit obligations. The Company did not draw on the new facility at closing.

This news is timed to Bank of America's 36th Annual Investment Conference tomorrow, September 21, 2006 at 9:30 a.m. PT.

Guess Press Release