Court Of Appeal Allows Danier Appeal


Dec 15, 2005 - 19:42

TORONTO, ONTARIO--(CCNMatthews - Dec. 15, 2005) -

Finds that Company met its disclosure obligation

Danier Leather Inc. (TSX:DL.SV), announced that the Ontario Court of Appeal has allowed its appeal from the May 2004 judgment of the Superior Court of Justice (Ontario) in the matter of a class action concerning the Company's initial public offering ("IPO") in 1998.

In its unanimous decision released late this afternoon, a panel of the Court of Appeal allowed the appeal on three separate grounds, set aside the trial decision and dismissed the class action.

The decision stated that the Company had met its statutory disclosure obligations during the IPO process. It noted that the Company's achievement of its financial forecast was a relevant consideration. And it stated that greater deference should have been accorded the business judgment of the Company's senior management, judgment that turned out to be correct.

Edwin Hawken, Chairman of the Board of Danier Leather Inc., said, "We're delighted with this decision of Ontario's highest Court. It vindicates the conduct of the Company, its directors and its senior officers during the IPO process."

Jeffrey Wortsman, President and Chief Executive Officer of Danier Leather Inc., noted, "I'm pleased with the decision of the Court of Appeal. The Company can continue to focus its attention on the business, on meeting the needs of our customers, and on creating value for our shareholders."

The matter of Danier's entitlement of costs will be addressed in the future.

About Danier

Danier Leather Inc. is a leading integrated designer, manufacturer, and retailer of high-quality leather and suede clothing and accessories. The Company's merchandise is marketed exclusively under the well-known Danier brand name and is available only at its 97 shopping mall, street-front, and power centre stores, or through its corporate sales division and online through its website,

Note: This press release may contain forward-looking statements that involve risks, estimates, and uncertainties. Therefore, actual results may differ materially. Examples of such risks and uncertainties include those associated with product sales, demand for Danier's products, availability of raw materials, foreign sourcing and manufacturing, the class action lawsuit, continued growth of the leather apparel industry, and competition and other associated risks with Danier's business. For an expanded discussion of risks and uncertainties, please see the documents filed by Danier Leather Inc. with the Ontario Securities Commission. Danier disclaims any responsibility to update or revise such forward-looking statements whether as a result of new information, future events or otherwise.

Investor Relations Contact: Danier Leather Inc.
Jeffrey Wortsman
President and Chief Executive Officer
(416) 762-8175 ext. 302
(416) 762-7408 (FAX)


Danier Leather Inc.
Bryan Tatoff
Senior Vice-President and Chief Financial Officer
(416) 762-8175 ext. 328
(416) 762-6072 (FAX)