Mossimo, Inc. Reports First Quarter Fiscal 2006 Results

Mossimo, Inc. (NASDAQ: MOSS) today announced financial
results for the first quarter ended March 31, 2006.
   In connection with its negotiations with Iconix Brand Group, Inc.
(NASDAQ: ICON), the Company amended and restated its license agreement
with Target to extend the term through January 31, 2010 and
transferred certain expenses associated with the license to Target. In
exchange Target received a one time non-refundable rebate of $6
million in royalties earned to date for contract year 2006 and a
reduction of 40 basis points in the royalties for contract years 2007
and beyond. The Company may charge Target for certain expenses
incurred in contract year 2006, up to the amount of the rebate.
   Mossimo, Inc. reported first quarter 2006 total net revenues were
$4.9 million compared to $8.7 million for the same period last year.
The Company reported a first quarter net loss of $1.17 million, which
included a non-recurring charge of $6 million, compared to net
earnings of $1.8 million for the same period last year. Including the
charge, first quarter 2006 diluted loss per share was $0.07 compared
to diluted earnings per share of $0.12 for the same period last year.
   Edwin Lewis, President and Co-Chief Executive Officer stated, "We
were pleased with the pace of our business during the quarter, as we
registered meaningful gains in our both men's and women's business at
Target. With regard to Modern Amusement, we experienced better
full-price selling compared to a year ago, and while there is still
work to be done, we are encouraged by our recent progress."
   Founded in 1987, Mossimo, Inc. is a designer, licensor and
distributor of men's, women's, boys' and girls' apparel, footwear, and
other fashion accessories such as jewelry, watches, handbags and
belts.

   The matters discussed in this news release with respect to
operations and future results, and the benefits thereof, are
forward-looking statements that involve risks and uncertainties,
including the demand for the Company's products in Target stores,
changes in consumer demands and preferences, shifting trends in the
overall retail and apparel market, competition from other lines,
changes in consumer spending patterns and general economic conditions,
and uncertainties generally associated with product introductions and
apparel retailing. Forward-looking statements are not guarantees and
involve known and unknown risks and uncertainties, any of which could
cause actual results to vary materially from anticipated results.
Operating results stated herein are not necessarily indicative of
results that may be expected in future periods. More information on
risk factors, which could affect the Company's financial results, is
included in the Company's Forms 10-K and 10Q, periodically filed with
the Securities and Exchange Commission.
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                            MOSSIMO, INC.
                     CONSOLIDATED BALANCE SHEETS
                  (IN THOUSANDS, EXCEPT SHARE DATA)
                             (Unaudited)
                                             March 31,    December 31,
                                            ------------  ------------
                                                2006          2005
                                            ------------  ------------
                   ASSETS
CURRENT ASSETS:
Cash and cash equivalents                   $    17,273   $    19,658
Restricted cash                                     732           726
Accounts receivable, net                         10,296         4,372
Merchandise inventory                               122           101
Deferred income taxes                             5,290         4,004
Prepaid expenses and other current assets           481           388
                                            ------------  ------------
Total current assets                             34,194        29,249

PROPERTY AND EQUIPMENT, at cost, net of
 accumulated
depreciation and amortization                       867           893

DEFERRED INCOME TAXES                             1,622         1,923

TRADENAME                                            87            90

OTHER ASSETS                                         43            79
                                            ------------  ------------
                                            $    36,813   $    32,234
                                            ============  ============

    LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable                            $     1,628   $       884
Accrued liabilities                               7,014           503
Accrued commissions                               1,081           388
Accrued bonuses                                     787         3,458
                                            ------------  ------------
Total current liabilities                        10,510         5,233

DEFERRED RENT                                       124           128
                                            ------------  ------------
Total liabilities                                10,634         5,361

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Preferred stock, par value $.001;
 authorized shares 3,000,000;
 no shares issued or outstanding                      -             -
Common stock, par value $.001; authorized
 shares 30,000,000; issued and outstanding
 15,908,775 at March 31, 2006 and 
 15,828,754 at December 31, 2005                     15            15
Additional paid-in capital                       40,702        40,222
Accumulated deficit                             (14,538)      (13,364)
                                            ------------  ------------
Net stockholders' equity                         26,179        26,873
                                            ------------  ------------
                                            $    36,813   $    32,234
                                            ============  ============
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                            MOSSIMO, INC.
                 CONSOLIDATED STATEMENTS OF EARNINGS
                (IN THOUSANDS, EXCEPT PER SHARE DATA)
                             (Unaudited)

                                               For the Three Months
                                                    March 31,
                                            --------------------------
                                                2006          2005
                                            ------------  ------------

Revenue from license royalties and design
 service fees                               $     2,561   $     7,354

Product sales                                     2,378         1,310
                                            ------------  ------------

Total revenues                                    4,939         8,664

Operating expenses:
Cost of product sales                             1,297         1,038
Selling, general and administrative               5,778         4,575
                                            ------------  ------------
Total operating expenses                          7,075         5,613
                                            ------------  ------------

Operating earnings (loss)                        (2,136)        3,051

Interest income                                     194            30
                                            ------------  ------------
Earnings (loss) before income taxes              (1,942)        3,081

Income taxes                                       (768)        1,260
                                            ------------  ------------

Net earnings (loss)                         $    (1,174)  $     1,821
                                            ============  ============

Net earnings (loss) per common share:
Basic                                       $     (0.07)  $      0.12
                                            ============  ============
Diluted                                     $     (0.07)  $      0.12
                                            ============  ============
Weighted average common shares outstanding:
Basic                                            15,889        15,738
                                            ============  ============
Diluted                                          15,889        15,757
                                            ============  ============
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