NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS

FOR:  DANIER LEATHER INC.

TSE SYMBOL:  DL

JANUARY 20, 2000

Danier Leather Inc. Announces Fiscal 200 Second Quarter
Results--Net earnings increased 53%--

TORONTO, ONTARIO-- 


/T/

                     --Net earnings increased 53%--
                        --Total revenue up 36%--
                --Successful launch of e-commerce site--

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

         ---------------------------------------------------------------------
         For the 13 Weeks Ended       For the 26 Weeks Ended      Trailing 52
         ----------------------    %  ----------------------    % Weeks Ended
          Dec 25, 99  Dec 26, 98  chg  Dec 25, 99  Dec 26, 98  chg  Dec 25, 99
------------------------------------------------------------------------------
Sales       $59,826    $44,046    36%   $75,542     $58,336    29%  $126,183
------------------------------------------------------------------------------
Net Earnings $8,510     $5,547    53%    $7,262      $4,743    53%    $8,633
------------------------------------------------------------------------------
EPS - Basic   $1.17      $0.76    53%     $1.00       $0.65    53%     $1.19
------------------------------------------------------------------------------
EPS - Fully
Diluted       $1.10      $0.72    53%     $0.94       $0.62    53%     $1.13
------------------------------------------------------------------------------

/T/

Danier Leather Inc.  (TSE: DL) today announced results for the 
thirteen-week and twenty-six week periods ended December 25, 1999.


For the second quarter ended December 25, 1999, net earnings 
increased 53% to $8.5 million, or $1.17 per basic share ($1.10 per
share fully diluted), compared to $5.5 million, or $0.76 per basic
share ($0.72 per share fully diluted), for the same thirteen-week 
period last year.  

Earnings before interest, taxes, depreciation and amortization 
(EBITDA) increased 58% to $16.2 million, or $2.22 per basic share,
compared to $10.2 million, or $1.41 per basic share, last year.  
On a 52 week trailing basis, Danier's 14.8% ratio of EBITDA to 
sales is believed to be the highest for Canadian publicly traded 
specialty apparel retailers.  Operating cash flow for the period 
was $9.6 million compared to $6.2 million in the same period last 
year.  

Revenue in the second quarter ended December 25, 1999, was up 
significantly in every region increasing 36% overall to $59.8 
million, compared to $44.0 million, for the same thirteen week 
period last year. Comparable stores sales for the thirteen-week 
period increased 21.3%. 

Jeffrey Wortsman, President and Chief Executive Officer commented,
"Results from the December 2nd launch of our e-commerce site have 
been great."  Highlights include: 

* strong customer response.    

* 65% of the customers purchasing from our website reside 
throughout the United States.  

* The majority of our website shoppers are new Danier customers.  

* Distribution and logistics have proven highly efficient with 
almost all customers receiving their order within 24 hours. 

Mr. Wortsman  continued, "We are extremely encouraged with our 
e-commerce progress and we will continue to invest in our 
e-commerce initiatives throughout fiscal 2000."   

For the twenty-six weeks ended December 25,1999, net earnings 
increased 53% to $7.3 million, or $1.00 per basic share ($0.94 per
share fully diluted), compared to $4.7 million, or $0.65 per basic
share ($0.62 per share fully diluted), for the same period in 
fiscal 1999.  Earnings before interest, taxes, and depreciation 
and amortization (EBITDA), increased 58% to $14.9 million, or 
$2.06 per basic share, compared to $9.4 million, or $1.30 per 
basic share, for the same period last year.  Operating cash flow 
for the period was $9.2 million compared to $6.0 million for the 
same twenty-six week period last year.   

Revenue for the twenty-six weeks ended December 25, 1999, 
increased 29% to $75.5 million compared to $58.3 million for the 
same period last year.  Comparable store sales for the first half 
of the year increased 13.2%. 

Fiscal 2000 Strategic Highlights 

During the second quarter of fiscal 2000, the Company made 
considerable progress in the implementation of its business 
strategy including: 

* www.danier.com was launched to favorable customer response in 
December, 1999 

* The first U.S. store location is delivering positive results 
posting increased sales and strong consumer response  

* 3 new Power Centre locations were opened in Cambridge, Brampton,
and Sudbury, Ontario 

* 4 new Shopping Mall stores were opened in Montreal, Quebec; 
Vancouver, British Columbia; Calgary, Alberta; and a test location
for the Accessories Store in The Eaton Centre in Toronto, Ontario 

* The new distribution center was highly efficient and enabled 
more frequent shipments to the stores 

* Merchandise planning initiatives resulting in improved in-stock 
positions 

* Danier's internal controls and loss prevention programs 
continued to produce a shrink rate of less than 1% (well below 
industry standards) 

* A highly-targeted  "relationship marketing" program was launched
to showcase breadth of product offering 

* Accessory sales increased 91% in the second quarter increasing 
from 6% to 9% of total sales 

Mr. Wortsman concluded, "In terms of our future growth plans, we 
remain firmly committed to both investing in the Danier brand 
equity and creating shareholder value.  Our growth initiatives 
include expanding our existing product lines, introducing new 
product lines and increasing our market share and brand 
recognition worldwide.  Our balance sheet strength provides us 
with the flexibility and confidence necessary to fund our 
continuing expansion plans and take further advantage of the 
buying opportunities for leather and finished garments." 

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 75 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.   


/T/

DANIER LEATHER INC.          
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(thousands of dollars, except earnings per share and number of shares
 outstanding)
                                                                    Trailing 52
                                                                         Weeks 
                        For the 13 Weeks Ended  For the 26 Weeks Ended   Ended
                        ----------------------- ---------------------- --------
                         December  December  %  December  December  %  December
                         25, 1999  26, 1998 chg  25, 1999 26, 1998 chg 25, 1999
                        ----------------------- ---------------------- --------
                      (unaudited)(unaudited)  (unaudited)(unaudited)(unaudited)
Revenue                 $  59,826  $ 44,046 36% $ 75,542 $  58,336 29% $126,183
Cost of sales              27,054    20,668       35,800    28,887       63,226
                        --------------------    -------------------    --------
Gross profit               32,772    23,378 40%   39,742    29,449 35%   62,957
Selling, general and
 administrative expenses   17,696    13,756       26,690    21,231       47,199
                        --------------------    -------------------    --------
Earnings before interest
 and income taxes          15,076     9,622       13,052     8,218       15,758
Interest expense              123        22          202        11          143
                        --------------------    -------------------    --------
Earnings before income
 taxes                     14,953     9,600       12,850     8,207       15,615
Provision for income tax    6,443     4,053        5,588     3,464        6,982
                        --------------------    -------------------    --------
Net earnings for the
 period                 $   8,510  $  5,547 53% $  7,262 $   4,743 53% $  8,633
                        --------------------    -------------------    --------
                        --------------------    -------------------    --------
          
Retained earnings,
 beginning of period        6,407       737        7,655     1,541        6,284
                        --------------------    -------------------    --------
Retained earnings,
 end of period          $  14,917  $  6,284     $ 14,917 $   6,284     $ 14,917
                        --------------------    -------------------    --------
                        --------------------    -------------------    --------
          
Earnings per Share:          
 Basic                      $1.17     $0.76 53%    $1.00     $0.65 53%    $1.19
 Fully Diluted              $1.10     $0.72 53%    $0.94     $0.62 53%    $1.13

Number of Shares Outstanding:          
 Basic                  7,264,329 7,264,329    7,264,329 7,264,329    7,264,329
 Fully Diluted          7,795,225 7,791,829    7,786,395 7,787,608    7,780,431
          


DANIER LEATHER INC.
CONSOLIDATED BALANCE SHEETS
(thousands of dollars)

                                   December 25,            December 26,
                                      1999                      1998
                                  -----------------     ---------------
                                   (unaudited)             (unaudited)
ASSETS
Current Assets    
 Cash and short-term deposits  $           5,922    $             3,279
 Accounts receivable                       1,161                  3,638
 Inventories                              30,568                 28,149
 Prepaid expenses                            236                    184
                                  -----------------     ---------------
                                          37,887                 35,250
 
Other Assets    
 Capital assets                           20,122                  8,470
 Goodwill                                    362                    376
 Deferred income taxes                     1,578                  2,247
                                  -----------------     ---------------
                                $         59,949    $            46,343
                                  -----------------     ---------------
                                  -----------------     ---------------

LIABILITIES
Current Liabilities
 Bank overdraft                 $              -    $                 -
 Accounts payable and 
  accrued liabilities                     15,487                 11,854
 Income taxes payable                      3,475                  1,898
 Current portion of long-term debt           259                    232
                                  -----------------     ---------------
                                          19,221                 13,984
                                  -----------------     ---------------
Long-term debt                               607                    871
                                  -----------------     ---------------
                                          19,828                 14,855
                                  -----------------     ---------------

SHAREHOLDERS' EQUITY    
 Share capital                            25,204                 25,204
 Retained earnings                        14,917                  6,284
                                  -----------------     ---------------
                                          40,121                 31,488
                                  -----------------     ---------------
                                $         59,949      $          46,343
                                  -----------------     ---------------
                                  -----------------     ---------------

          

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
                                  25, 1999     26, 1998    25, 1999   26, 1998
                                 ----------------------  ----------------------
                               (unaudited)  (unaudited)  (unaudited) (unaudited)


Cash flows from operating activities:      
Net earnings for the period        $  8,510   $  5,547    $   7,262   $ 4,743 
Adjustments for:      
 Amortization                         1,079        613        1,897     1,219 
                                ----------------------  ----------------------
                                      9,589      6,160        9,159     5,962 
Change in operating assets and liabilities:      
 Accounts receivable                   (712)    (3,253)        (792)   (3,047)
 Inventories                         (2,488)    (6,992)      (7,909)   (8,365)
 Prepaid expenses                       (68)       (49)           6         1 
 Accounts payable and accrued 
 liabilities                          7,473      5,770        9,151     5,987 
 Income taxes payable                 5,272      3,257        2,002       352 
                                 ----------------------  ----------------------
Net cash provided by operating 
 activities                          19,066      4,893       11,617       890 
                                 ----------------------  ----------------------

Cash flows from investing activities:      
 Acquisition of capital assets       (3,288)    (2,752)      (7,202)   (4,253)
                                 ----------------------  ----------------------
Net cash used for investing 
 activities                          (3,288)    (2,752)      (7,202)   (4,253)
                                 ----------------------  ----------------------

Cash flows from financing activities:      
 Obligations under capital leases       (62)       (56)        (121)     (111)
                                 ----------------------  ----------------------
Net cash used for financing activities  (62)       (56)        (121)     (111)
                                 ----------------------  ----------------------
      
Net increase (decrease) in cash      15,716      2,085        4,294    (3,474)
Cash and short-term deposits 
 (bank overdraft), beginning 
  of period                          (9,794)     1,194        1,628     6,753 
                                 ----------------------  ----------------------
Cash and short-term deposits, 
 end of period                     $  5,922   $  3,279    $   5,922   $ 3,279 
                                 ----------------------  ----------------------
                                 ----------------------  ----------------------

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

or

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

or

Karen Goulet
Capital Markets Communications
Tel: (416) 322-3070
Fax: (416) 322-3055