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AMERICAN APPAREL WITH SUPPORT OF CITY SPONSORED FASHION BUSINESS INC. CREATE NEW INNER-CITY JOBS IN LOS ANGELES

-Fashion Business Inc. (FBI)
-January 29, 2003

Los Angeles (CA) - Fashion Business Inc. (FBI) and the Valley Economic Development Center will be holding a breakfast reception and fashion show on February 12th, 2003 at the New Mart, located at 127 East 9th Street, 3rd floor to announce a $400,000 low-interest rate loan that it has secured for American Apparel, one of the fastest growing and largest T-shirt manufacturers in the United States. American Apparel is located in Downtown LA's federally designated Empowerment Zone and this loan will help American Apparel propel its business model of sustainability. This loan from the Los Angeles Community Development Bank (LACDB) will contribute to fund expansion for machinery and equipment that will support generating new jobs as part of the City's Growth Contract initiative.

American Apparel known for its socially responsible business practices and stylish form-fitting T-shirts and apparel recently announced the addition of health care benefits for its employees expanding on the company's various proactive employee environment and programs. American Apparel is out-performing all economic indicators having created 150 new jobs during a sluggish economy in the second half of 2002 and implemented new worker friendly modular production realizing an 80% increase in sales. American Apparel has grown to be the largest, fully integrated garment factory in the United States employing over 1000 people at the factory.

"This loan will give us the ability to create new growth to purchase more equipment and to hire more workers that will allow us to supply the demand for more American Apparel products," said Dov Charney, co-founder and senior partner of American Apparel. As a result of American Apparel's location in the Empowerment Zone, the company also receives State sponsored training for its employees and a utility rate reduction, allowing American Apparel to leverage its technology, designs and production, providing increased employee pay and benefits. American Apparel is rapidly growing, helping to revitalize L.A.'s downtown economy creating more jobs and producing a renaissance in a distressed community.

Councilman Nick Pachecho noted that, "The Garment Industry employs over 100,000 workers within the Los Angeles Region. It contributes $ 9 billion annually to the local economy and is the largest manufacturing sector in Los Angeles County. It provides more jobs for low and moderate-income workers than any other industry sector." Councilman Pachecho's office was significant to American Apparel's recent expansion within the 14th Council District.

The FBI was founded to help develop and support start-up and small to mid-size apparel manufacturing companies in Los Angeles. The FBI in partnership with the City's largest economic development provider, the Valley Economic Development Center is receiving funds from the City of LA's Community Development Department, as part of its Growth Business Component. Funded by the US Department of Housing and Urban Development, this grant is specifically geared to create and save jobs for low and moderate-income workers within distressed portions of the City of Los Angeles.

"Here's an excellent example of a private-public partnership that works," said FBI Executive Director, Frances Harder. "By providing technical assistance to American Apparel and some 14 other companies in the garment industry we're able to create jobs even in an economic downturn. This is only possible because of the City's Growth Business Contract initiative and the Community Development Department's faith in our consulting staff." The Fashion Business Inc. (FBI) is a non-profit technical assistance and educational provider for the Los Angeles Garment Industry. The FBI seeks to strengthen what is already the nation's capital for the Garment Industry. Its goal is to create hundreds of new garment jobs over the next two years and spark $6 million in new investment in plant, equipment and technology so that LA can retain its economic position of national dominance. The breakfast reception and fashion show will also highlight 16 other apparel manufacturers in Los Angeles that are participating in the City's Growth Initiative."

FOR FURTHER INFORMATION CONTACT:
FRANCES HARDER
FASHION BUSINESS INC.
PH: 213-892-1669
127 East 9th Street
Suite 212
E-mail: Fharder@aol.com