TOMMY HILFIGER CORPORATION ANNOUNCES THE CONSOLIDATION OF KARL LAGERFELD OPERATIONS

New York and Paris (June 8, 2006) - Tommy Hilfiger Corporation today announced the consolidation of its Karl Lagerfeld operations into a sole Paris headquarters. The KARL LAGERFELD line, based in New York, will be discontinued following the fall 2006 season. The Paris headquarters will continue to design, produce and sell the LAGERFELD COLLECTION designer line. All global licensing will continue to be managed from New York by the Tommy Hilfiger Corporation's established licensing organization.

Fred Gehring, CEO of Tommy Hilfiger, stated, "We believe strongly in the enormous potential of the Karl Lagerfeld brand. Karl is one of the great design icons of our time.  However, the management of dual headquarters in both Paris and New York is complex and specifically at odds with the Company's core mission following the acquisition by Apax Partners to focus resources on our core activity of further developing the Tommy Hilfiger brand. In addition, we believe that Paris as the sole creative and organizational base will provide the focus necessary to further develop LAGERFELD COLLECTION  while allowing the Company to continue to assess future growth opportunities."

Mr. Lagerfeld added, "I am pleased to be focusing all my creative energies at this time on the global LAGERFELD COLLECTION designer line from Paris, which has always been the heart and soul of my atelier.  While the Tommy Hilfiger Corporation focuses more intensely on its name brand, the power and energy that I have experienced with our recent presence in New York will continue to drive and grow the spirit of LAGERFELD COLLECTION around the world."

In January 2005, the Karl Lagerfeld business was acquired by the Tommy Hilfiger Corporation.
 
About Tommy Hilfiger Corporation
Tommy Hilfiger Corporation, through its subsidiaries, designs, sources and markets men’s and women’s sportswear, jeanswear and childrenswear. The Company’s brands include Tommy Hilfiger and Karl Lagerfeld. Through a range of strategic licensing agreements, the Company also offers a broad array of related apparel, accessories, footwear, fragrance, and home furnishings. The Company’s products can be found in leading department and specialty stores throughout the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, Australia and other countries in the Far East, as well as the Company’s own network of outlet and specialty stores in the United States, Canada and Europe.

About Karl Lagerfeld LLC
Karl Lagerfeld LLC, a wholly-owned subsidiary of the Tommy Hilfiger Corporation, together with its affiliates, designs, sources and markets luxury and contemporary ready-to-wear designer apparel for both men and women. The Company also offers an array of related accessories through strategic licensing agreements. The Company's products can be found in boutique specialty stores and upscale department stores worldwide.

Contact:

Avery Baker
Executive Vice President Global Communications
Tommy Hilfiger U.S.A., Inc.
Tel: 212 549 5959
ABaker@tommy-usa.com