R.G. Barry Corporation Secures Factoring and Financing From CIT

R.G. Barry Corporation Secures Factoring and Financing From CIT 


PICKERINGTON, Ohio, March 29  /PRNewswire-FirstCall/ -- R.G. Barry Corporation 
said today that it entered into a factoring and financing agreement with The CIT
Group/Commercial Services.  Under the credit facility, CIT may advance to the
Company loans and arrange for the issuance of letters of credit in an aggregate
amount up to $35 million, subject to a borrowing base formula.  The agreement is
for a stated term of three years.

Fromfunds to be borrowed under the new CIT facility, the Company will retire
all indebtedness to its current lending bank and to an institutional lender.

To secure the financing, the Company is granting to CIT a security interest and
pledge in substantially all of its assets, including a mortgage on all of its
real estate.  The Company's current bank facility, which will be retired, is
also secured by substantially all of the assets of the Company.

The CIT agreement permits the Company to convert its factoring arrangement to an
asset-based revolving loan on terms to be mutually agreed upon.

"We are pleased to have established this relationship with CIT which has such an
excellent reputation in providing financial services to the apparel and footwear
industries, and we believe that it provides a financing arrangement that is
well-suited to our comfort footwear business," said Thomas Von Lehman, President
and Chief Executive Officer.

"CIT has long been committed to financing the apparel and footwear industries,
and we are pleased to have the opportunity to play a role in R.G. Barry's
business strategy," said John F. Daly, President of CIT Commercial Services.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Thestatements in this release, other than statements of historical fact,
are forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. All forward-looking statements are based upon
information available tothe Company on the date of this release. Any
forward-looking statement inherently involves risks and uncertainties that could
cause actual results and outcomes to differ materially from those anticipated by
our forward-looking statements. Factors that would cause or contribute to such
differences include, but are not limited to, continued acceptance of the
Company's products in the marketplace, the success of the Company's on-going
efforts to achieve profitability, the decision of CIT to continue to fund under
its discretionary factoring and financing arrangement with the Company,
competitive factors, dependence on third party contract manufacturers, and the
continuing support of the Company's suppliers and customers. Other risks to the
Company's business are detailed in our press releases, shareholder
communications and Securities and Exchange Commission filings. 

DATASOURCE: R.G. Barry Corporation



CONTACT:  Daniel D. Viren, Senior Vice President-Finance, or Roy Youst,

Director Corporate Communications, both of R.G. Barry Corporation,

[phone]

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