NEWS RELEASE TRANSMITTED BY CCN - A NEWSWIRE SERVICE OF ITG

FOR:  DANIER LEATHER INC.

TSE SYMBOL:  DL

AUGUST 2, 2000 - 11:59 EDT

Danier Leather Inc. Announces Fiscal 2000 Year End Record
Results; Net Earnings Increased 75% Total Revenue Up 31%

TORONTO, ONTARIO-- 

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


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---------------------------------------------------------------
                              For the 52 Weeks Ended 
                              ------------------------      %             
                                 Jun 24, 00   Jun 26, 99   chg
---------------------------------------------------------------
Sales                              $143,011     $108,977   31%
EBITDA                              $22,556      $13,222   71%
Net Earnings                        $10,710       $6,114   75%
EPS - Basic                           $1.48        $0.84 
EPS - Fully Diluted                   $1.40        $0.81 
---------------------------------------------------------------

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Danier Leather Inc.  (TSE: DL) today announced record results for 
the year ended June 24, 2000. 

For the year ended June 24, 2000, net earnings increased 75% to 
$10.7 million, or $1.48 per basic share ($1.40 per share fully 
diluted), compared to $6.1 million, or $0.84 per basic share 
($0.81 per share fully diluted), for the year ended June 26, 1999.
  

Earnings before interest, taxes, and depreciation and 
amortization, (EBITDA) increased 71% to $22.6 million, or $3.12 
per basic share, compared to $13.2 million, or $1.82 per basic 
share, for the same period last year.  Danier's 15.8% ratio of 
EBITDA to sales ranks number one for Canadian publicly traded 
specialty apparel retailers for three years in a row and also 
ranks it among the top publicly traded U.S. specialty apparel 
retailers.  Net operating cash flow increased 68% to $10.4 million
compared to $6.2 million for the same fifty-two week period last 
year. 

Revenue for the year ended June 24, 2000, increased 31% to $143.0 
million compared to $109.0 million, for the same fifty-two week 
period last year. Comparable stores sales for the fifty-two week 
period increased 15.6%.   

The gross margin rate for the year ended June 24, 2000 was 51.1% 
compared to 48.3% for the year ended June 26, 1999.  As a 
percentage of sales, selling, general and administrative costs 
decreased to 37.7% for fiscal 2000 from 38.3%, in fiscal 1999. 

Jeffrey Wortsman, President and Chief Executive Officer commented,
"Danier has delivered another record year of revenue and earnings 
growth.  Our merchandising and marketing strategies continue to be
highly effective with strong consumer response to our product 
offering. In addition, the results from www.danier.com continue to
be strong with a majority of sales being derived from outside of 
Canada." 

For the fourth quarter ended June 24, 2000, a historically weak 
retail period, Danier reported a reduced net loss of $55,000, or 
$0.01 per basic share, compared to a net loss of $389,000, or 
$0.05 per basic, for the same thirteen week period last year.  

Earnings before interest, taxes, depreciation and amortization 
(EBITDA) increased to $670,000, or $0.09 per basic share, compared
to $8,000, or $NIL per basic share, for the same thirteen week 
period last year.   

Revenue for the fourth quarter ended June 24, 2000, increased 35% 
to $24.5 million compared to $18.1 million, for the same 
thirteen-week period last year. Comparable stores sales for the 
thirteen-week period increased 23.3%.   

The gross margin rate for the thirteen weeks ended June 24, 2000 
increased to 50.7% from 46.7% in the same period last year 
reflecting less promotional activity and improved merchandise 
planning. 

The board of directors is committed to maximizing shareholder 
value and believes that the corporation's subordinate voting 
shares represent an attractive investment.  Share repurchases 
under the Normal Course Issuer Bid continued with 232,000 shares 
(approximately 4% of the total number of subordinate voting shares
outstanding) being repurchased since January 2000.   

Fiscal 2000 Strategic Highlights 

The Company made considerable progress in the implementation of 
its business strategy in fiscal 2000 including: 


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* Danier.com was successfully launched in December 1999 and has generated strong
  customer response, significant U.S. traffic and sales, and was recently rated
  the #1 Canadian apparel site and 4th in North America in a study of 170 web
  sites conducted by Ryerson Polytechnic University.  In addition, Retail
  Information Systems News, a prominent industry publication, ranked Danier as
  one of the top 10 retailers able to fuse its bricks and mortar stores with its
  e-commerce site.
* The first U.S.A. store location generated increased sales and strong consumer
  response.  A second location was opened in July 2000 in the same trade area.
* Accessory sales increased 77% and now represent 8.9% of total sales compared
  to 6.6% last year.
* Danier delivered a 2.8% increase in gross margin year-over-year due to an
  excellent response to the Company's product offering, improved merchandise
  planning, and strategic buying and pricing.
* The move to a new head office, retail store, manufacturing facility and
  distribution center in July 1999 was seamless and provides increased
  distribution efficiencies and the infrastructure necessary for growth. 
* The total number of store locations increased to 75 from 69 (includes U.S.
  location).  This resulted in a square footage increase of 25,320. 
* Danier's internal controls and loss prevention programs continued to produce a
  shrink rate of approximately 1% (well below industry standards).
* The Company's balance sheet has remained virtually debt-free providing
  continued flexibility for the strategic purchase of leather and finished
  garments.

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Mr. Wortsman concluded, "We remain firmly committed to both 
investing in the Danier brand equity and our e-commerce 
initiatives. Our growth initiatives going forward include; 
Canadian and U.S. expansion, introducing new product lines, 
expanding our existing product lines, increasing our market share 
and brand recognition worldwide and expanding our e-commerce 
marketing programs.  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.  We are confident
that our success will continue throughout fiscal 2001.   

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 or 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, consumer
shopping patterns, 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,
overseas sourcing, 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 (LOSS)      
                               AND RETAINED EARNINGS      
                              (thousands of dollars)      
           
           
                            For the 13 Weeks Ended    For the Year Ended 
                             --------------------------------------------
                             June 24,   June 26,      June 24,   June 26,
                               2000       1999          2000       1999
                             --------------------------------------------
                            (unaudited)(unaudited)    
Revenue                  $   24,478    $   18,100   $ 143,011  $ 108,977 
Cost of sales                12,069         9,654      69,865     56,313
------------------------------------------------------------------------- 
Gross profit                 12,409         8,446      73,146     52,664 
-------------------------------------------------------------------------
Selling general and 
 administrative expenses     12,455         8,892      54,051     41,740
------------------------------------------------------------------------- 
Earnings (loss) before 
 interest 
 and income taxes               (46)         (446)     19,095     10,924 
Interest expense (income)       (59)          (37)         33        (48)
-------------------------------------------------------------------------
Earnings (loss) before income 
 taxes                           13          (409)     19,062     10,972 
Provision for income taxes       68           (20)      8,352      4,858
------------------------------------------------------------------------- 
Net earnings (loss)      $      (55)   $     (389)  $  10,710  $   6,114
------------------------------------------------------------------------- 
-------------------------------------------------------------------------

Retained earnings, beginning 
 of period               $   18,207    $     8,044  $   7,655  $   1,541 
Future income tax adjustment   (118)             -       (118)         - 
-------------------------------------------------------------------------
Retained earnings, beginning 
 of period as restated       18,089          8,044      7,537      1,541 
Share purchases                (825)             -     (1,038)         - 
-------------------------------------------------------------------------
Retained earnings, 
 end of period           $   17,209    $     7,655  $  17,209  $   7,655 
-------------------------------------------------------------------------
-------------------------------------------------------------------------           

Net earnings (loss) per share:           
 Basic                   $    (0.01)   $     (0.05) $    1.48  $    0.84 
 Fully diluted                  n/a            n/a  $    1.40  $    0.81 
           
Weighted average number of shares outstanding:           
 Basic                    7,138,861      7,264,329  7,223,108  7,264,329 
 Fully diluted            7,650,361      7,771,829  7,739,163  7,781,038 


                               DANIER LEATHER INC.    
    
                           CONSOLIDATED BALANCE SHEETS    
                             (thousands of dollars)    
         
         
                                            June 24,      June 26, 
                                              2000         1999
--------------------------------------------------------------------
ASSETS         
Current Assets         
 Cash and short-term deposits              $    775    $    1,628 
 Accounts receivable                            762           369 
 Inventories                                 35,124        22,659 
 Prepaid expenses                               197           242 
 Current portion of future income tax asset   1,163           918
-------------------------------------------------------------------- 
                                             38,021        25,816 
         
Other Assets         
 Capital assets                              20,631        14,810 
 Goodwill                                       355           369 
 Future income tax asset                          -           660
-------------------------------------------------------------------- 
                                           $ 59,007    $   41,655
-------------------------------------------------------------------- 
--------------------------------------------------------------------        

LIABILITIES         
Current Liabilities         
 Accounts payable and accrued liabilities  $ 13,208    $    6,336 
 Income taxes payable                         3,251         1,473 
 Current portion of long-term debt              270           247
-------------------------------------------------------------------- 
                                             16,729         8,056 

Long-term debt                                  470           740 
Future income tax liability                     363             - 
--------------------------------------------------------------------
                                             17,562         8,796
-------------------------------------------------------------------- 
         
SHAREHOLDERS' EQUITY         
 Share capital                               24,236        25,204 
 Retained earnings                           17,209         7,655
-------------------------------------------------------------------- 
                                             41,445        32,859 
--------------------------------------------------------------------
                                           $ 59,007     $  41,655 
--------------------------------------------------------------------
--------------------------------------------------------------------

                           DANIER LEATHER INC.      
              
                 CONSOLIDATED STATEMENTS OF CASH FLOW      
                         (thousands of dollars)      
          
          
                           For the 13 Weeks Ended    For the Year Ended
------------------------------------------------------------------------- 
                           June 24, June 26,        June 24,   June 26,
                              2000      1999            2000       1999
-------------------------------------------------------------------------
                         (unaudited)(unaudited)    
OPERATING ACTIVITIES          
 Net earnings (loss)       $   (55)  $    (389)    $ 10,710   $   6,114 
 Items not affecting cash:         
 Amortization                  716         454        3,461       2,298 
 Loss on disposal of capital 
  assets                       227          28          227          28 
 Future income taxes           186          80          186          80
-------------------------------------------------------------------------
                             1,074         173       14,584       8,520 
 Net change in non-cash 
  working capital items     (7,798)     (1,313)      (4,163)     (2,314)
-------------------------------------------------------------------------
Cash flows from operating 
 activities                 (6,724)     (1,140)      10,421       6,206 
-------------------------------------------------------------------------
          
FINANCING ACTIVITIES          
 Subordinate voting shares 
  purchased                 (1,574)          -       (2,006)          - 
 Future income taxes related 
  to the IPO                   474         589          474         589 
 Obligations under capital 
  leases                       (43)        (59)        (247)       (227)
-------------------------------------------------------------------------
Cash flows from financing 
 activities                 (1,143)        530       (1,779)        362 
-------------------------------------------------------------------------
          
INVESTING ACTIVITIES          
 Acquisition of capital 
  assets                    (1,493)     (3,044)      (9,495)    (11,693)
-------------------------------------------------------------------------
Cash flows from investing 
  activities                (1,493)     (3,044)      (9,495)    (11,693)
-------------------------------------------------------------------------
          
Decrease in cash            (9,360)     (3,654)        (853)     (5,125)
Cash and short term  
 deposits, beginning of 
  period                    10,135       5,282        1,628       6,753 
-------------------------------------------------------------------------
Cash and short term 
 deposits, end of period   $   775    $  1,628    $     775   $   1,628 
-------------------------------------------------------------------------
-------------------------------------------------------------------------          
Supplementary cash 
 flow information:            
 Interest paid                  18          23          183         120 
 Income taxes paid           1,170         776        5,934       4,579 

/T/

FOR FURTHER INFORMATION PLEASE CONTACT:
Danier Leather Inc.
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

or

Capital Markets Communications
Karen Goulet
(416) 322-3644
(416) 322-3055 (FAX)
capitalmarkets@on.aibn.com