NEWS RELEASE TRANSMITTED BY CCN - A NEWSWIRE SERVICE OF ITG

FOR:  DANIER LEATHER INC.

TSE SYMBOL:  DL

OCTOBER 11, 2000 - 08:59 EDT

Danier Leather Inc. Announces Strong Fiscal 2001 First
Quarter Results: Revenue Up 40% And Comparable Store
Sales Up 29%

TORONTO, ONTARIO-- 


/T/

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

-----------------------------------------------------------------
                      For the 13 Weeks Ended    %     Trailing 52
                      ----------------------   chg    Weeks Ended
                                                      -----------
-----------------------------------------------------------------
                       Sep 23, 00 Sep 25, 99         Sep 23, 00
-----------------------------------------------------------------
Sales                 $21,937    $15,716       40%    $149,232
-----------------------------------------------------------------
Net Profit  (Loss)    ($1,155)   ($1,248)      (7%)    $10,803
-----------------------------------------------------------------
EPS - Basic            ($0.16)    ($0.17)             $1.51
-----------------------------------------------------------------
EPS - Fully Diluted       n/a        n/a              $1.43
-----------------------------------------------------------------

/T/

Danier Leather Inc. (TSE: DL) today announced strong results for 
the thirteen-week period ended September 23, 2000. 

Revenue in the first quarter ended September 23, 2000, was up 
significantly in every region increasing 40% overall to $21.9 
million, compared to $15.7 million, for the same thirteen week 
period last year. Comparable stores sales for the thirteen-week 
period were up dramatically, increasing 29%. 

For the first quarter ended September 23, 2000, the Company 
reported a reduced net loss of $1.16 million, or ($0.16) per 
share, compared to a net loss of $1.25 million, or ($0.17) per 
share, for the same thirteen-week period last year.  Gross profit 
for the first quarter of fiscal 2001 increased 47% to $10.3 
million or 46.8% of sales compared to $7.0 million or 44.3% of 
sales for the same period last year.  

Earnings before interest, taxes, depreciation and amortization 
(EBITDA) increased by 44% to negative $0.7 million compared to 
negative $1.2 million last year.  On a 52 week trailing basis, 
Danier's 15.5% ratio of EBITDA to sales is the highest for 
Canadian publicly traded specialty apparel retailers.  

Jeffrey Wortsman, President and Chief Executive Officer commented,
"This quarter is traditionally slower in the retail industry and 
Danier historically reports a loss.  We are extremely pleased to 
report a 40% increase in sales this quarter and a smaller loss 
than last year.  We are confident that this early year sales 
momentum suggests strong and continued growth for the remainder of
the year." 

The board of directors is committed to maximizing shareholder 
value and believes that the corporation's subordinate voting 
shares continue to represent an attractive investment.  Since 
January 2000, 297,700 shares (approximately 5% of the total number
of subordinate voting shares outstanding) have been repurchased 
under the Normal Course Issuer Bid.   

Fiscal 2001 Strategic Highlights 

During the first quarter of fiscal 2001, the Company continued to 
reach a number of strategic milestones including: 


/T/

* A second U.S. store was opened on Long Island, New York, in the same
  trade area.
* Danier.com continues to generate a majority of its orders from the
  United States.  
* Accessories sales doubled during the quarter. 
* The Danier brand is gaining increased market visibility through an
  extensive outdoor advertising and PR campaign.
* Two Canadian shopping mall stores were opened during the quarter.

/T/

Mr. Wortsman concluded, "In terms of our future growth plans, we 
remain firmly committed to investing in the Danier brand in order 
to further develop Danier's profile as a global lifestyle brand 
while 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 78 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 (LOSS) AND RETAINED EARNINGS
(thousands of dollars, except earnings per share and number of shares 
outstanding)   
      
                                                            Trailing 52
                           For the 13 Weeks Ended           Weeks Ended
                           ----------------------           -----------
                           September   September      %     September 
                           23, 2000    25, 1999      chg    23, 2000
                           ----------------------    ---    -----------
                          (unaudited) (unaudited)           (unaudited)

Revenue                     $ 21,937    $ 15,716     40%      $ 149,232
Cost of sales                 11,669       8,746                 72,788
                           ----------------------           -----------
Gross profit                  10,268       6,970     47%         76,444
Selling, general and 
administrative expenses       12,056       8,994     34%         57,113
                           ----------------------           -----------
Earnings (loss) before
interest and income taxes     (1,788)     (2,024)    (12%)        19,331
Interest expense                 237          79                    191
                           ----------------------           -----------
Earnings (loss) before 
income taxes                  (2,025)     (2,103)     (4%)        19,140
Provision for income tax        (870)       (855)      2%          8,337
                           ----------------------           -----------
Net earnings (loss) for 
the period                  $ (1,155)   $ (1,248)    (7%)      $ 10,803
                           ----------------------           -----------
                           ----------------------           -----------
      
Retained earnings, 
beginning of period           17,209       7,655                  6,407
Future income tax adjustment       -           -                   (118)
                           ----------------------           -----------
Retained earnings, beginning 
of period as restated         17,209       7,655                  6,289
Share purchases                 (454)           -                 (1,492)
                           ----------------------           -----------
Retained earnings, end of 
period                      $ 15,600     $ 6,407               $ 15,600
                           ----------------------           -----------
                           ----------------------           -----------
      
Earnings (Loss) per Share:     
 Basic                        ($0.16)     ($0.17)                 $1.51
 Fully Diluted                   n/a         n/a                  $1.43
      
Weighted Average Number of 
Shares Outstanding:     
 Basic                     7,000,822   7,264,329              7,157,232
 Fully Diluted             7,528,542   7,777,629              7,676,908
Number of Shares 
Outstanding                6,966,629   7,264,329              6,966,629


DANIER LEATHER INC.   
CONSOLIDATED BALANCE SHEETS  
(thousands of dollars)   
    
    
                                September 23,2000     September 25,1999
                                -----------------     -----------------
                                   (unaudited)           (unaudited)
ASSETS   
Current Assets   
 Accounts receivable                   $      521            $      449
 Income taxes recoverable                   2,050                 1,797
 Inventories                               49,968                28,080
 Prepaid expenses                             125                   168
 Current portion of future 
 income tax asset                           1,163                   918
                                       ----------            ----------
                                           53,827                31,412
    
Other Assets   
 Capital assets                            21,385                17,910
 Goodwill                                     352                   365
 Future income tax asset                        -                   660
                                       ----------            ----------
                                       $   75,564            $   50,347
                                       ----------            ----------
                                       ----------            ----------

LIABILITIES   
Current Liabilities   
 Bank overdraft                        $   23,918            $    9,794
 Accounts payable and 
 accrued liabilities                       11,046                 8,014
 Current portion of long-term debt            276                   253
                                       ----------            ----------
                                           35,240                18,061
                                       ----------            ----------
Long-term debt                                399                   675
Future income tax liability                   363                     -
                                       ----------            ----------
                                           36,002                18,736
                                       ----------            ----------

SHAREHOLDERS' EQUITY   
 Share capital                             23,962                25,204
 Retained earnings                         15,600                 6,407
                                       ----------            ----------
                                           39,562                31,611
                                       ----------            ----------
                                       $   75,564            $   50,347
                                       ----------            ----------
                                       ----------            ----------


DANIER LEATHER INC.    
CONSOLIDATED STATEMENTS OF CASH FLOW  
(thousands of dollars)    
     
                                         For the 13 Weeks Ended  
                                 --------------------------------------
                                 September 23,2000    September 25,1999
                                 --------------------------------------
                                    (unaudited)          (unaudited)  
Operating activities    
 Net loss for the period               $   (1,155)          $   (1,248)
 Items not affecting cash:    
 Amortization                               1,118                  818
                                       --------------------------------
                                              (37)                (430)
Change in non-cash working 
capital items                             (21,994)              (7,019)
                                       --------------------------------
Cash flows from operating activities      (22,031)              (7,449)
     
Financing activities    
 Bank overdraft                            23,918                9,794
 Subordinate voting shares purchased         (728)                   -
 Obligations under capital leases             (65)                 (59)
                                       --------------------------------
Cash flows from financing activities       23,125                9,735
                                       --------------------------------
Investing activities    
 Acquisition of capital assets             (1,869)              (3,914)
                                       --------------------------------
Cash flows from investing activities       (1,869)              (3,914)
                                       --------------------------------
Decrease in cash                             (775)              (1,628)
Cash, beginning of period                     775                1,628
                                       --------------------------------
Cash, end of period                    $        -           $        -
                                       --------------------------------
                                       --------------------------------
     
Supplementary cash flow information:    
 Interest paid                                114                   32
 Income taxes paid                          4,431                2,155

Notes to the Consolidated Financial Statements    

 1.  Certain of the prior period's figures have been reclassified to
     conform to the current year's presentation.
 2.  The interim financial statements follow the same accounting
     policies and methods of computation as outlined in the Company's
     June 24, 2000 Annual Report.   
 3.  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)
Email: leather@danier.com

or

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