Hidary Group Settles Litigation with Everlast

  
    
  
  
    
      The Hidary Group announced today that, in light of Everlast Worldwide 
      Inc. (Nasdaq: EVST) removing significant impediments to Hidary's ability 
      to compete economically on a level playing field to acquire Everlast, 
      Hidary has settled its litigation with Everlast.
    
    
      Hidary’s proposal to acquire Everlast has 
      received increasing support from key shareholders. The Everlast board of 
      directors received separate letters from Aquamarine Capital Management, 
      LLC, on July 13, 2007, and Burlingame Asset Management, LLC, the company’s 
      largest independent shareholder, on July 25, 2007, in favor of Hidary’s 
      most recent proposal with its valuable tax-free roll-over feature. In 
      addition, several shareholder lawsuits have been commenced against the 
      company regarding its recent actions. Given these developments, Hidary 
      does not require the intervention of the Delaware courts at this time to 
      ensure that the Everlast Board will fulfill its fiduciary responsibility 
      to its shareholders. Hidary has thus voluntarily dismissed its Delaware 
      Chancery Court litigation against Everlast.
    
    
      Jack D. Hidary, Managing Partner of The Hidary Group stated: "We 
      appreciate the increasing shareholder support for our most recent 
      proposal, and we are pleased that we can now focus our efforts 
      exclusively on delivering superior value to each and every Everlast 
      shareholder.”
    
    
      Hidary's last offer to Everlast shareholders, which was publicly 
      disclosed on June 29, 2007, was to purchase their shares for $31.25 per 
      share in cash in an all cash transaction. In addition, the offer gave 
      all Everlast shareholders the option, as well as the flexibility, to 
      invest up to 50 percent of their shares into the transaction to become 
      investors in the new entity. Existing stockholders thus had the rare 
      opportunity to invest:
    
    
      
        on a tax-deferred basis (i.e., stockholders who own shares for less 
        than a year, and who elect to roll over their shares, could defer 
        paying as much as $4 out of every $10 of gain that would be realized 
        if such stockholder sold shares);
      
      
        in a company they already know based on their current investment;
      
      
        on the same economic terms as large equity investors;
      
      
        with an equity sponsor incentivized to maximize shareholder value; and
      
      
        in a global brand with potentially large growth prospects.
      
    
    
      Burlingame noted in a letter to Everlast's Board dated July 25, 2007: 
      "the roll over option gives stockholders the ability to participate in 
      the future successes of Everlast, while also deferring taxes on up to 
      half of their gains. The tax deferral alone probably makes the Hidary 
      proposal superior to stockholders; let alone what value they could 
      ultimately receive by rolling over up to half their interests into the 
      surviving private company."
    
    
      Everlast began to remove impediments to Hidary's ability to compete on 
      an economic basis for the acquisition of Everlast by sending Hidary a 
      letter dated July 26, 2007. The letter stated that in the event that 
      Hidary proposed either a new acquisition proposal or commenced a 
      non-coercive tender offer for Everlast's shares, Everlast would not 
      enforce the standstill provisions of the Confidentiality and Standstill 
      Agreement, dated as of May 9, 2007, between M. Hidary & Company, Inc. 
      and Everlast. Everlast's public reaffirmation of its commitment to 
      discharge its fiduciary duties under Delaware law with respect to any 
      Hidary acquisition proposal also makes clear that Hidary is now free to 
      compete economically without artificial impediments or obstacles.
    
    
      Clarence Schwab, Managing Partner of C. Schwab LLC, an investment firm, 
      is serving as financial advisor to the Hidary Group. Proskauer Rose LLP 
      and Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal 
      advisors to The Hidary Group.
    
    
      About The Hidary Group
    
    
      The Hidary Group is a New York-based investor group. The firm's 
      portfolio consists of companies in various industries, including 
      consumer goods, real estate, technology and financial services.