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Thursday, May 7, 2015

Kate Spade & Company & Exclusive Brands International Partnership

Kate Spade & Company (NYSE: KATE) and Exclusive Brands International S.A. (EBI), a leading retailer and distributor in Latin America and the Caribbean, today announced plans to expand the kate spade new york brand presence in Latin America with a new distribution agreement.  Under the terms of the agreement, EBI will have distribution rights to the kate spade new york brand, spanning 17 territories throughout Central and South Americaand the Caribbean.

The newly formed strategic partnership will leverage EBI's understanding of the region, international brand experience, and proven success at helping brands grow to expand the kate spade new york footprint in Latin America and distribute kate spade new york products to territories where the Company does not currently have store, wholesale, or eCommerce presence.    

Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company, said: "Latin America offers significant untapped potential where we see meaningful opportunity for growth. Currently in this region, we see significant brand awareness, increasing demand for our products and the desire to engage with the kate spade new york brand more deeply.  We look forward to connecting with these customers and providing them with access to the kate spade new york collections in their own countries."

Mr. Leavitt continued: "Our partnership with EBI is important as we establish a strong foundation for the kate spade new york brand across Latin America, helping us build scale and accelerate growth in that region. This strategic partnership is an important milestone in Kate Spade & Company's progression along our geographic expansion axis and is consistent with our partnered approach to expansion."

"We are extremely pleased to be partnering with Kate Spade & Company to launch the kate spade new york brand in Latin America.  We are confident that kate spade new york's colorful and sophisticated designs, along with EBI's extensive experience in retail and distribution in Latin America, will enhance the brand's success," said Alfredo Maduro Z., CEO of Exclusive Brands International S.A.

In connection with the partnership, the Company will no longer operate directly in Brazil and will evaluate the business in the region in partnership with EBI. Kate Spade & Company will continue its successful existing distribution agreement with Grupo Axo in Mexico, where kate spade new york already has four stores and two points of distribution.

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