NEWS RELEASE TRANSMITTED BY CCN - A NEWSWIRE SERVICE OF ITG

FOR:  DANIER LEATHER INC.

TSE SYMBOL:  DL

JANUARY 17, 2001 - 11:00 EST

Danier Leather Inc. Announces Strong Second Quarter
Results: Earnings Per Share up 22%-Comparable Store Sales
up 10%

TORONTO, ONTARIO-- 


/T/

HIGHLIGHTS ($000, except percentages and earnings per share):

          For the 13        %      For the           %    Trailing 52 
          Weeks Ended      chg     26 Weeks Ended   chg   Weeks Ended 
          Dec 23,  Dec 25,         Dec 23,  Dec 25,       Dec 23,
          00       99              00       99            00
----------------------------------------------------------------------
Sales    $69,573  $59,826  16%    $91,510   $75,542  21%    $158,979
EBITDA   $18,895  $16,155  17%    $18,225   $14,949  22%     $25,832
Net 
 Earnings $9,872   $8,510  16%     $8,717    $7,262  20%     $12,165
EPS - 
 Basic     $1.42    $1.17  22%      $1.25     $1.00  25%       $1.72
EPS - 
 Fully 
 Diluted   $1.32    $1.10  20%      $1.17     $0.94  24%       $1.62
----------------------------------------------------------------------
/T/

Danier Leather Inc. (TSE: DL) today announced that net earnings 
increased 16% to $9.9 million, or $1.42 per basic share ($1.32 per
share fully diluted) in the fiscal second quarter ended December 
23, 2000, compared to $8.5 million, or $1.17 per basic share 
($1.10 per share fully diluted) in the second quarter last year.  
Basic and fully diluted earnings per share increased by 22% and 
20%, respectively, due to shares repurchased under the Normal 
Course Issuer Bid.  

Earnings before interest, taxes, depreciation and amortization 
(EBITDA) rose 17% to $18.9 million, or $2.73 per basic share, 
compared to $16.2 million, or $2.22 per basic share for the same 
13-week period last year. 

On a 52-week trailing basis, Danier's 16.2% ratio of EBITDA to 
sales is believed to be the highest among Canadian publicly traded
specialty apparel retailers. 

Revenue in the fiscal 2001 second quarter was up in every region 
and increased 16% overall to $69.6 million from $59.8 million in 
the comparable quarter of the prior year. Comparable store sales 
increased 10% during the same period. 

"As a strong and essentially debt-free company, Danier is 
well-positioned to continue to meet its objectives and implement 
its growth strategy," said Jeffrey Wortsman, President and Chief 
Executive Officer. "We established a strong brand by offering high
quality, fashionable leather clothing at reasonable prices. Now we
are leveraging this accomplishment in complementary markets such 
as our initial U.S. stores and our rapidly expanding accessories 
business. As well, we are encouraged by the growth in sales and 
success of our award-winning e-commerce site.  As a multi-channel 
retailer, we are integrating Danier's physical stores, 1 million 
name customer database, and E-commerce site to increase Danier's 
brand awareness and to find better ways to serve our customers," 
Mr. Wortsman added. 

For the 26-week period ended December 23, 2000, net earnings 
increased 20% to $8.7 million, or $1.25 per basic share ($1.17 per
share fully diluted), compared to $7.3 million, or $1.00 per basic
share ($0.94 per share fully diluted) for the same period last 
year. Earnings before interest, taxes, depreciation and 
amortization (EBITDA) increased 22% to $18.2 million, or $2.62 per
basic share, compared to $14.9 million, or $2.06 per basic share, 
for the same period last year. 

Revenue for the six months ended December 23, 2000 increased 21% 
to $91.5 million from $75.5 million in the prior year period. 
Comparable store sales in the first half increased 14%. 

The Company continued to repurchase shares under the Normal Course
Issuer Bid and has repurchased 429,500 shares (approximately 7% of
the total number of subordinate voting shares outstanding) since 
receiving regulatory approval for the Bid in January 2000. 

Q2 Highlights 

During the fiscal 2001 second quarter, Danier achieved a number of
strategic milestones, including: 

* Opening three new Power Centre locations in Kanata, Ontario; 
Winnipeg, Manitoba; and Coquitlam, British Columbia; and one new 
shopping mall store in Sherbrooke, Quebec; 

* Increasing accessories sales by 34% to 11% of total Company 
sales; 

* Raising Danier brand name market visibility through an extensive
outdoor advertising and PR campaign; 

* Leveraging multiple channels of retail including, e-commerce, 
physical stores and customer database. 

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 82 shopping mall, street front, and power 
centre stores and online through its website, www.danier.com. 

Certain statements in this press release contain forward-looking 
statements that deal with potential future circumstances and 
developments. Forward-looking statements involve risks and 
uncertainties, including, but not limited to, the weather and 
performance of the economies in the markets in which the Company 
operates, continued acceptance of the Company's products, 
competitive factors, the Company's ability to identify and 
interpret fashion trends, factors affecting its sourcing of skins 
from operations in Europe, New Zealand and Asia, and other such 
risks as we may identify in this release or in other published 
documents.  Accordingly, there is no certainty that the Company's 
plans will be achieved.   

Investors, analysts and the media are invited to participate in a 
conference call today at 2:00 p.m. Eastern Time to discuss the 
results. Please dial 1-888-343-1303 (U.S. and Canada) at least 
five minutes prior to the call. The call will also be webcast at 
www.q1234.com. 


/T/

DANIER LEATHER INC.         
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS   
(thousands of dollars, except earnings per share and number 
 of shares outstanding)       
-------------------------------------------------------------------------

                                                           
                 For the 13              For the 26           Trailing 52
                Weeks Ended              Weeks Ended          Weeks Ended
             ------------------        ------------------     -----------
             December   December   %   December   December   %  December 
             23, 2000   25, 1999  chg  23, 2000   25, 1999  chg 23, 2000
             -----------------------------------------------------------
           (unaudited) (unaudited)   (unaudited) (unaudited)  (unaudited)

Revenue    $  69,573   $  59,826  16%   $91,510   $ 75,542  21% $158,979
Cost of 
 sales        31,152      27,054         42,821     35,800        76,886
            --------------------       -------------------     ---------
Gross profit  38,421      32,772  17%    48,689     39,742  23%   82,093
Selling, 
 general and 
 administrative 
 expenses     20,720      17,696  17%    32,776     26,690  23%   60,137
            --------------------       -------------------     ---------
Earnings 
 before 
 interest and 
 income taxes 17,701      15,076  17%    15,913     13,052  22%   21,956
Interest 
 expense         382         123            619        202           450
            --------------------       -------------------     ---------
Earnings before 
 income taxes 17,319      14,953  16%    15,294     12,850  19%   21,506
Provision for 
 income tax    7,447       6,443  16%     6,577      5,588  18%    9,341
            --------------------       -------------------     ---------
Net earnings 
 for the 
 period     $  9,872   $   8,510  16%   $ 8,717   $  7,262  20%  $12,165
            --------------------       -------------------     ---------
            --------------------       -------------------     ---------

Retained 
 earnings, 
 beginning of
 period       15,600       6,407         17,209      7,655        14,917
Future income 
 tax adjustment    -           -              -          -          (118)
            --------------------       -------------------     ---------
Retained earnings, 
 beginning of 
 period as 
 restated     15,600       6,407         17,209      7,655        14,799
Share 
 purchases      (953)          -         (1,407)         -        (2,445)
            --------------------       -------------------     ---------
Retained 
 earnings, end 
 of period  $ 24,519   $  14,917       $ 24,519   $ 14,917     $  24,519
            --------------------       -------------------     ---------
            --------------------       -------------------     ---------


Earnings 
 per Share:         
  Basic        $1.42       $1.17   22%    $1.25      $1.00   25%   $1.72
  Fully 
   Diluted     $1.32       $1.10   20%    $1.17      $0.94   24%   $1.62

Weighted Average 
 Number of 
 Shares 
 Outstanding:         
  Basic      6,930,076   7,264,329      6,965,449  7,264,329    7,073,669
  Fully 
   Diluted   7,487,082   7,795,225      7,507,812  7,786,395    7,599,872
Number of 
 Shares 
 Outstanding 6,834,829   7,264,329      6,834,829  7,264,329    6,834,829


DANIER LEATHER INC.  
CONSOLIDATED BALANCE SHEETS 
(thousands of dollars)  
   
                               December 23,         December 25,
                                  2000                 1999
                               ---------------------------------
                               (unaudited)          (unaudited) 
ASSETS  
Current Assets  
 Cash and short-term deposits  $    1,394         $      5,922  
 Accounts receivable                3,545                1,161
                               --------------------------------
 Inventories                       44,410               30,568
 Prepaid expenses                      37                  236
 Current portion of future 
  income tax asset                  1,163                  918 
  50,549 38,805
   
Other Assets  
 Capital assets                    22,759               20,122
 Goodwill 348 362
 Future income tax asset                -                  660 
                               --------------------------------
                               $   73,656         $     59,949 
                               --------------------------------
                               --------------------------------
   
LIABILITIES  
Current Liabilities  
 Bank overdraft                $    2,969         $          - 
 Accounts payable and 
  accrued liabilities              18,716               15,487 
 Income taxes payable               3,222                3,475 
 Current portion of long-term debt    203                  259
                               --------------------------------
                                   25,110               19,221
                               --------------------------------
Long-term debt                        252                  607
Future income tax liability           363                   - 
                               --------------------------------
                                   25,725               19,828
                               --------------------------------
   
SHAREHOLDERS' EQUITY  
 Share capital                     23,412               25,204 
 Retained earnings                 24,519               14,917
                               --------------------------------
                                   47,931               40,121
                               --------------------------------
                               $   73,656         $     59,949
                               --------------------------------
                               --------------------------------

DANIER LEATHER INC.     
CONSOLIDATED STATEMENTS OF CASH FLOW   
(thousands of dollars)     
--------------------------------------------------------------
      
                 For the 13 Weeks Ended       For the 26 Weeks Ended
                 December      December       December    December 
                 23, 2000      25, 1999       23, 2000    25, 1999
                 ---------------------------------------------------
                (unaudited)  (unaudited)    (unaudited)  (unaudited)

Operating 
 activities     
 Net earnings 
  for the period  $  9,872   $   8,510      $    8,717   $   7,262
 Items not 
  affecting cash:     
 Amortization        1,194       1,079           2,312       1,897
                 ---------------------       ---------------------
                    11,066       9,589          11,029       9,159
Change in non-cash 
 working capital 
 items              15,564       9,477          (6,430)      2,458
                 ---------------------       ---------------------
Cash flows from 
 operating 
 activities         26,630      19,066           4,599      11,617
                 ---------------------       ---------------------
      
Financing activities
 Bank overdraft    (20,949)     (9,794)          2,969          -
 Subordinate voting 
  shares purchased  (1,503)          -          (2,231)         -
 Obligations under 
  capital leases      (220)        (62)           (285)      (121)
                 ---------------------       ---------------------
Cash flows from 
 financing 
 activities        (22,672)     (9,856)            453       (121)
                 ---------------------       ---------------------
      
Investing activities     
 Acquisition of 
  capital assets   (2,564)      (3,288)        (4,433)     (7,202)
                 ---------------------       ---------------------
Cash flows from 
 investing 
 activities        (2,564)      (3,288)        (4,433)     (7,202)
                 ---------------------       ---------------------
      
Increase in cash    1,394        5,922            619       4,294 
Cash, beginning of 
 period                 -            -            775       1,628 
                 ---------------------       ---------------------
Cash, end of 
 period          $  1,394   $    5,922       $  1,394    $  5,922 
                 ---------------------       ---------------------
                 ---------------------       ---------------------
Supplementary cash 
 flow information:     
  Interest paid      501          108            615         140
  Income taxes 
   paid            2,175        1,427          6,606       3,582


Notes to the Consolidated Financial Statements

 1. The interim financial statements follow the same accounting  
policies and methods of computation as outlined in the Company's 
June 24, 2000 Annual Report.

 2. The interim financial statements are unaudited and are subject 
to year-end adjustments. 

/T/

FOR FURTHER INFORMATION PLEASE CONTACT:
Investor Relations Contact:
Jeffrey Wortsman, President and Chief Executive Officer
(416) 762-8175 ext. 302
(416) 762-7408 (FAX)
leather@danier.com

or

Bryan Tatoff
Vice-President and Chief Financial Officer
(416) 762-8175 ext. 328
(416) 762-7408 (FAX)
bryan@danier.com