TOMMY HILFIGER TO ACQUIRE EUROPEAN FOOTWEAR LICENSEE

New York, (July 24 2007). The Tommy Hilfiger Group announced today that it has acquired Tommy Hilfiger Footwear Europe GmbH, its European licensee based in Osnabruck, Germany.

"Tommy Hilfiger footwear was introduced to the European market back in 2002 when we signed a license with Hamm Shoe & Accessories Company GmbH. In a short five year period it has developed into a highly successful business with sales in Europe exceeding Euro 60 million (US$ 81.0 million). The brand is extremely well positioned and, like most other divisions of the group, experiences very strong sell through. We believe that there will be strong continued growth in the future and that integration within the Tommy Hilfiger Group will optimize activities both in terms of product development as well as commercially. This acquisition is in line with our strategy to consolidate brand management and approach the market in the most coordinated manner possible." said Fred Gehring, Chief Executive Officer of Tommy Hilfiger Group.

Dr. Hans-Peter Hamm, president of the Hamm Shoe & Accessories Group and stepping down as Managing Director of Tommy Hilfiger Footwear stated: "We have experienced a spectacular business development during the last five years, not in the least due to the fact that the Tommy Hilfiger brand is truly a global powerhouse. It has been a huge pleasure to have worked with the Tommy Hilfiger organization. I would like to thank all the members of the footwear team for their amazing work during these five incredible years. I am confident that the business will have many more successful years of growth".

The transaction is expected to close by August 15, 2007. No financial details have been disclosed. The organization in Osnabruck will remain an independent entity yet will be managed as a division of Tommy Hilfiger Europe BV. Mr. Dirk Pues, member of the Tommy Hilfiger Footwear management team since the start and recently one of its managing directors will remain in his position and report to Daniel Grieder, COO and President of Tommy Hilfiger Europe BV.

Tommy Hilfiger Group

Tommy Hilfiger Group, 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.

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Contacts:

Abdel El Hamri
Director of European Communications
Tommy Hilfiger Europe B.V.
+31 20 589 5701
Abdel.Elhamri@tommy.com

Quohnos Mitchell
Vice President of European Communications
Tommy Hilfiger Europe B.V.
+31 20 589 5851
Quohnos.Mitchell@tommy.com

Avery Baker
Executive Vice President Global Marketing and Communications
Tommy Hilfiger Europe B.V.
+31 20 589 5716
Avery.Baker@tommy.com