Everlast Worldwide Inc. Announces Agreement to Be Acquired by The Hidary Group

  
    
  
  
    
      Everlast Worldwide Inc. (Nasdaq: EVST) announced today that it had 
      signed a definitive agreement to be acquired by The Hidary Group, for 
      $26.50 per share in cash, a 14.5% premium to its closing price on May 
      31, 2007, and a 30% premium to the average closing price over the last 
      month. The total value of the all-cash transaction is over $146 million.
    
    
      The Board of Directors of Everlast Worldwide approved the agreement in a 
      special meeting June 1, 2007. The transaction is subject to stockholder 
      approval and other customary conditions and is expected to be completed 
      during the third quarter of 2007.
    
    
      In making the announcement, Seth Horowitz, Chairman, President and Chief 
      Executive Officer of Everlast Worldwide, said, “We 
      are pleased with the terms of this transaction and believe it is in the 
      best interests of the Company’s stockholders. 
      The Hidary Group has been an excellent licensing partner and, as such, 
      has not only embraced the Everlast brand but also our strategic 
      direction and long-term vision.”
    
    
      Jack D. Hidary, Managing Partner of The Hidary Group said, “We 
      have tremendous respect for Seth Horowitz and his team, and look forward 
      to our partnership with Everlast Worldwide. We have a long history in 
      the sports and athletic apparel marketplace, including a strong 
      relationship and knowledge of the Everlast brand as one of Everlast 
      Worldwide’s licensees.”
    
    
      Hidary continued, “We believe that the depth 
      of our experience growing brands online and offline offers an exciting 
      fit to help management further enhance Everlast’s 
      iconic global brand. Everlast Worldwide, its management and its 
      employees are a great addition to our group of companies.”
    
    
      A special meeting of stockholders of Everlast Worldwide will be 
      announced soon to obtain stockholder approval of the transaction.
    
    
      The Hidary Group is the lead sponsor of the deal. Other investors 
      include multi-billion dollar investment funds Gracie Capital, Ore Hill 
      Partners, and Seneca Capital. Each fund manages in excess of $1 billion.
    
    
      Piper Jaffray & Co. is serving as financial advisor to Everlast 
      Worldwide. Clarence Schwab, Managing Partner of C. Schwab LLC, is 
      serving as financial advisor to the Hidary Group. Mr. Schwab also works 
      closely with certain Hidary Group portfolio companies. Olshan Grundman 
      Frome Rosenzweig & Wolosky LLP and Proskauer Rose LLP acted as legal 
      advisors to Everlast Worldwide and Hidary Group, respectively.
    
    
      About Everlast Worldwide Inc.
    
    
      Everlast Worldwide Inc. is a leading designer, manufacturer and marketer 
      of boxing and fitness related sporting goods equipment under the 
      well-recognized Everlast brand name and a worldwide licensor of the 
      Everlast brand for apparel, footwear, sporting goods equipment and other 
      active lifestyle products and accessories. Since 1910, Everlast has been 
      the preeminent brand in the world of boxing and among the most 
      recognized brands in the overall sporting goods and apparel industries.
    
    
      In order to capitalize on the rich heritage and authenticity of the 
      Everlast brand, the company has extended the Everlast brand outside of 
      the boxing ring into complementary product categories. Its strategy is 
      to continue to leverage the unique qualities represented by the Everlast 
      brand -- Strength, Dedication, Individuality and Authenticity -- to 
      become a leading global athletic brand and a necessary part of the lives 
      of consumers who train, compete and live an active lifestyle. URL: http://www.everlast.com
    
    
      About The Hidary Group
    
    
      The Hidary Group is a New York-based family office investor group. The 
      firm’s portfolio consists of companies in 
      various industries, including consumer goods, real estate, technology 
      and financial services.
    
    
      Forward-Looking Statements
    
    
      This press release contains certain forward-looking statements within 
      the meaning of Section 27A of the Securities Act of 1933, as amended, 
      and Section 21E of the Securities Exchange Act of 1934, as amended. 
      Although the Company believes the assumptions underlying the 
      forward-looking statements contained herein are reasonable, any of the 
      assumptions could be inaccurate, and therefore, there can be no 
      assurance that the forward-looking statements contained in this press 
      release will prove to be accurate.
    
    
      In connection with the proposed transaction, the Company will file a 
      proxy statement with the Securities and Exchange Commission. INVESTORS 
      AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT 
      BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. 
      Investors and security holders may obtain a free copy of the proxy 
      statement (when available) and other documents filed by the Company at 
      the Securities and Exchange Commission’s web 
      site at www.sec.gov. The proxy 
      statement and such other documents may also be obtained for free from 
      the Company by directing such request to the Company, Attention: Angelo 
      V. Giusti, Secretary, Everlast Worldwide, Inc., 1350 Broadway, Suite 
      2300, New York, New York 10018, Telephone: [phone].
    
    
      The Company and its directors, executive officers and other members of 
      its management and employees may be deemed to be participants in the 
      solicitation of proxies from its stockholders in connection with the 
      proposed transaction. Information concerning the interests of Company’s 
      participants in the solicitation is set forth in the Company’s 
      proxy statements and Annual Reports on Form 10-K, previously filed with 
      the Securities and Exchange Commission, and in the proxy statement 
      relating to the transaction when it becomes available.