NEWS RELEASE TRANSMITTED BY CCN NEWSWIRE

FOR:  DANIER LEATHER INC.

TSE SYMBOL:  DL

OCTOBER 17, 2001 - 09:08 EDT

Danier Leather Reports Fiscal 2002 First Quarter Results

TORONTO, ONTARIO-- 

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


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                  ----------------------------------------------------
                  For the 13 Weeks Ended       For the 12 Months Ended
                  ----------------------       -----------------------
----------------------------------------------------------------------
                  Sep 29, 01   Sep 23, 00      Sep 29, 01   Sep 23, 00
----------------------------------------------------------------------
Sales                $21,426      $21,937        $164,907     $149,232
----------------------------------------------------------------------
Net Earnings
 (Loss)              ($2,315)     ($1,155)        $10,918      $10,803
----------------------------------------------------------------------
EPS - Basic           ($0.34)      ($0.16)          $1.59        $1.51
----------------------------------------------------------------------
EPS - Fully
 Diluted                 n/a          n/a           $1.57        $1.50
----------------------------------------------------------------------

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Danier Leather Inc. (TSE: DL) today announced its consolidated 
financial results for the first quarter ended September 29, 2001. 

Revenue for the first quarter was $21.4 million, compared to $21.9
million for the first quarter last year. Comparable store sales 
for the first quarter were down 10% compared with a 29% increase 
during the same period last year.  

For the 13 weeks ended September 29, 2001, the net loss was $2.3 
million, or ($0.34) per share, compared with a net loss of $1.2 
million, or ($0.16) per share for the 13-week period ended 
September 23, 2000.  

Jeffrey Wortsman, President and Chief Executive Officer commented,
"The first quarter is a historically weak retail period and this 
year's first quarter results, when viewed on a year-over-year 
basis, also reflect the exceptionally strong first quarter we had 
last year, during which we posted comparable store sales gains of 
29%. Given the uncertain retail environment, we are particularly 
encouraged by the continued growth of our Accessories business, 
where sales climbed 35% in the quarter, and represented 15% of 
total first quarter sales compared with 11% in the first quarter 
last year."  

"Like many other retailers, results have been impacted by the 
challenging economic environment and the attacks on and subsequent
to September 11th. While store traffic levels have declined, we 
believe that our customers remain interested and are temporarily 
deferring purchases. At this time it is difficult to assess the 
full impact for the remainder of the year. However, as we enter 
our second quarter, which is traditionally a very strong one, we 
remain optimistic that we can continue to build on our strong 
track record, meet our objectives and implement our long-term 
growth strategy. We are closely managing our inventory and using 
our strong financial condition to position us for continued good 
performance when shoppers resume more normalized buying patterns. 
Furthermore, we are continuing to make great strides in the areas 
of marketing and brand awareness."   

The Danier brand is gaining increased prominence and recognition 
among U.S. fashion magazine editors, with Danier product featured 
in recent issues of InStyle, Lucky and Mode Magazine. Danier's 
recognition among influential celebrities is also increasing with 
Danier clothing being worn by Heather Locklear, Camryn Manheim and
The Backstreet Boys. During the MTV Video Music Awards, Danier 
accessories were selected to be given to presenters and award 
winners. 

The Company's store openings remain on schedule. Three power 
centre locations were opened during the first quarter (two in 
Montreal, one in Quebec City) and two additional power centre 
locations are expected to open this year, one in each of the next 
two quarters. In addition, the company's flagship store in the 
fashionable Bay & Bloor district of Toronto is set to open in 
November. All other store renovations and relocations are on 
schedule. 

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 86 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 
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 11:00 a.m. Eastern Time to discuss the 
results. Please dial 1-800-381-7839 (U.S. and Canada) at least 
five minutes prior to the call. The call will also be webcast at 
www.q1234.com. 


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DANIER LEATHER INC.      
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND RETAINED EARNINGS
(thousands of dollars, except earnings per share and number
 of shares outstanding)    
----------------------------------------------------------------------
       
                   For the 13 Weeks Ended      For the 12 Months Ended
                   ----------------------      -----------------------
                   September    September       September    September 
                    29, 2001     23, 2000        29, 2001     23, 2000
                  -----------------------      -----------------------
                  (unaudited)  (unaudited)     (unaudited)  (unaudited) 
                                                (53 weeks)   (52 weeks) 

Revenue           $   21,426   $   21,937      $  164,907   $  149,232  
Cost of sales         11,940       11,669          83,089       72,788  
                  -----------------------      -----------------------
Gross profit           9,486       10,268          81,818       76,444  
Selling, general
 and
 administrative
 expenses             13,192       12,056          62,038       57,113  
                  -----------------------      -----------------------
(Loss) Earnings
 before interest
 and income taxes     (3,706)      (1,788)         19,780       19,331  
Interest expense         218          237             564          191  
                  -----------------------      -----------------------
(Loss) Earnings
 before income
 taxes                (3,924)      (2,025)         19,216       19,140  
Provision for
 income tax           (1,609)        (870)          8,298        8,337  
                  -----------------------      -----------------------
Net (loss)
 earnings for
 the period       $   (2,315)  $   (1,155)     $   10,918   $   10,803  
                  -----------------------      -----------------------
                  -----------------------      -----------------------
       
Retained earnings,
 beginning of
 period               27,880       17,209          15,600        6,407  
Future income tax
 adjustment                -            -               -         (118) 
Share purchases            -         (454)           (953)      (1,492) 
                  -----------------------      -----------------------
Retained earnings,
 end of period    $   25,565   $   15,600      $   25,565   $   15,600  
                  -----------------------      -----------------------
                  -----------------------      -----------------------
       
(Loss) Earnings
 per Share:      
  Basic               ($0.34)      ($0.16)          $1.59        $1.51  
  Fully Diluted          n/a          n/a           $1.57        $1.50  
       
Weighted Average
 Number of Shares
 Outstanding:      
  Basic            6,837,263    7,000,822       6,859,097    7,157,232  
  Fully Diluted    6,951,079    7,096,556       6,956,933    7,196,146  
Number of Shares
 Outstanding       6,839,329    6,966,629       6,839,329    6,966,629  
       


DANIER LEATHER INC.     
CONSOLIDATED BALANCE SHEETS    
(thousands of dollars)     
----------------------------------------------------------------------             
      
                                September       September         June 
                                 29, 2001        23, 2000     30, 2001
                               ----------      ----------   ----------
                               (unaudited)     (unaudited)  
ASSETS     
Current Assets     
 Cash                          $        -      $        -   $    1,663 
 Accounts receivable                  606             521          664 
 Income taxes recoverable           3,190           2,050            - 
 Inventories                       53,258          49,968       39,227 
 Prepaid expenses                     390             125          459 
 Current portion of future
  income tax asset                    944           1,163          932 
                               ----------      ----------   ----------
                                   58,388          53,827       42,945 
      
Other Assets     
 Capital assets                    26,561          21,385       25,151 
 Goodwill                             342             352          342 
                               ----------      ----------   ----------
                               $   85,291      $   75,564   $   68,438 
                               ----------      ----------   ----------
                               ----------      ----------   ----------
      
LIABILITIES     
Current Liabilities     
 Bank overdraft                $   28,129      $   23,918   $    3,486 
 Accounts payable and
  accrued liabilities               7,659          11,046       11,945 
 Income taxes payable                   -               -        1,184 
 Current portion of
  long-term debt                        -             276            - 
                               ----------      ----------   ----------
                                   35,788          35,240       16,615 
Long-term debt                          -             399            - 
Future income tax liability           501             363          531 
                               ----------      ----------   ----------
                                   36,289          36,002       17,146 
                               ----------      ----------   ----------
      
SHAREHOLDERS' EQUITY     
 Share capital                     23,437          23,962       23,412 
 Retained earnings                 25,565          15,600       27,880 
                               ----------      ----------   ----------
                                   49,002          39,562       51,292 
                               ----------      ----------   ----------
                               $   85,291      $   75,564   $   68,438 
                               ----------      ----------   ----------
                               ----------      ----------   ----------
        

DANIER LEATHER INC.   
CONSOLIDATED STATEMENTS OF CASH FLOW  
(thousands of dollars)   
----------------------------------------------------------------------        
    
                                                For the 13 Weeks Ended 
                                               -----------------------
                                                September    September 
                                                 29, 2001     23, 2000 
                                               -----------------------
                                               (unaudited)  (unaudited) 
Operating activities   
 Net loss for the period                       $   (2,315)  $   (1,155) 
 Items not affecting cash:   
 Amortization                                       1,322        1,118  
 Future income taxes                                  (42)           -  
                                               -----------------------
                                                   (1,035)         (37) 
Change in non-cash working capital items          (22,564)     (21,994) 
                                               -----------------------
Cash flows from operating activities              (23,599)     (22,031) 
                                               -----------------------
    
Financing activities   
 Issuance of subordinate voting shares                 25            -  
 Subordinate voting shares
  purchased for cancellation                            -         (728) 
 Obligations under capital leases                       -          (65) 
                                               -----------------------
Cash flows from financing activities                   25         (793)
                                               ----------------------- 
    
Investing activities   
 Acquisition of capital assets                     (2,732)      (1,869) 
                                               -----------------------
Cash flows from investing activities               (2,732)      (1,869) 
                                               -----------------------
    
Decrease in cash                                  (26,306)     (24,693) 
Cash and bank overdraft, beginning of period       (1,823)         775  
                                               -----------------------
Bank overdraft, end of period                  $  (28,129)  $  (23,918) 
                                               -----------------------
                                               -----------------------
    
Supplementary cash flow information:   
 Interest paid                                        121          114  
 Income taxes paid                                  2,811        4,431  
    

DANIER LEATHER INC.   
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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1. SIGNIFICANT ACCOUNTING POLICIES: 

(a) Basis of Presentation: 

The interim financial statements presented herein follow the same 
accounting policies and their methods of application as the 2001 
annual financial statements, except as noted in notes 1(b) and 
1(c) below.  Generally accepted accounting principles for interim 
financial statements do not conform in all respects to the 
disclosures required for annual financial statements, and 
accordingly, these interim financial statements should be read in 
conjunction with the Company's audited consolidated financial 
statements and the accompanying notes contained in the Company's 
2001 Annual Report. 

(b) Goodwill (thousands of dollars): 

Effective July 1, 2001, the Company adopted the Canadian Institute
of Charted Accounts (CICA) Handbook section 3062 "Goodwill and 
Other Intangible Assets".  Under the new standard, which can only 
be applied prospectively, goodwill and other intangible assets are
not amortized, but are tested for impairment at least annually as 
well as on adoption of the new standard.  The effect of this 
change on net earnings (loss) in the current quarter is $3. 

(c) Earnings (Loss) Per Share: 

Earnings (loss) per share are calculated using the weighted 
average number of shares outstanding during the period.  The 
Company adopted the treasury stock method of accounting for fully 
diluted earnings per share in its fiscal year ended June 30, 2001.
 Fully diluted shares outstanding for the 13 week period ended 
September 23, 2000 were restated to reflect the treasury stock 
method.  The effect of the restatement of fully diluted earnings 
per share was nil for the 13 week period ended September 23, 2000.


(d) Comparative Figures: 

Certain of last year's figures have been reclassified to conform 
with the current year's presentation. 



2. SEASONALITY OF RETAIL OPERATIONS: 

Due to the seasonal nature of the retail business and the 
Company's product lines, the results of operations for any interim
period are not necessarily indicative of the results of operations
to be expected for the fiscal year.  Generally, a significant 
portion of the Company's sales and earnings are generated during 
the fiscal second quarter, which includes the holiday selling 
season.  Sales are generally lowest and losses are experienced 
during the period from April to September.   



3. INVENTORY (thousands of dollars): 


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                                             September 29,     June 30, 
                                                     2001         2001
                                               -----------------------
Raw materials & work-in-progress               $    7,613   $    9,077
Finished goods                                     45,645       30,150
                                               -----------------------
                                               $   53,258   $   39,227
                                               -----------------------
                                               -----------------------

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4. CAPITAL ASSETS  (thousands of dollars): 


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                                           September 29, 2001
                               ---------------------------------------
                                              Accumulated     Net Book 
                                     Cost    Amortization        Value 
                               ---------------------------------------

Land                           $    1,000      $        -   $    1,000
Building                            5,901             442        5,459
Furniture and equipment             9,519           4,642        4,877
Leasehold improvements             18,778           7,372       11,406
Computer hardware and software      6,829           3,010        3,819
                               ---------------------------------------
                               $   42,027      $   15,466   $   26,561
                               ---------------------------------------
                               ---------------------------------------


                                              June 30, 2001
                               ---------------------------------------
                                              Accumulated     Net Book 
                                     Cost    Amortization        Value 
                               ---------------------------------------

Land                           $    1,000      $        -   $    1,000
Building                            5,897             340        5,557
Furniture and equipment             9,043           4,423        4,620
Leasehold improvements             17,110           6,631       10,479
Computer hardware and software      6,245           2,750        3,495
                               ---------------------------------------
                               $   39,295      $   14,144   $   25,151
                               ---------------------------------------
                               ---------------------------------------


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5. CAPITAL STOCK (thousands of dollars, except number of shares 
and per share amounts):  


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                                             September 29,     June 30, 
                                                     2001         2001
                                               ----------   ----------
Authorized   
1,224,329 Multiple Voting Shares   
Unlimited Subordinate Voting Shares   
Unlimited Class A Preference Shares   
   
Issued   
1,224,329 Multiple Voting Shares
  (June 30, 2001 - 1,224,329)                           *            *
5,615,000 Subordinate Voting Shares
  (June 30, 2000 - 5,611,000)                      23,437       23,412
                                               ----------   ----------
                                               $   23,437   $   23,412
                                               ----------   ----------
                                               ----------   ----------
* Nominal

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During the 13 week period ended September 29, 2001, 4,000 
Subordinate Voting Shares were issued pursuant to the exercise of 
stock options for total consideration of $24 and no shares were 
purchased for cancellation under the Normal Course Issuer Bid 
approved by The Toronto Stock Exchange on January 23, 2001. 

The Company has reserved 700,000 Subordinate Voting Shares for 
issuance under its Stock Option Plan. As at September 29, 2001, 
581,000 Subordinate Voting Shares were reserved for issuance 
pursuant to options outstanding under the Stock Option Plan at 
exercise prices ranging from $6.02 to $11.25 per share and 
expiring no later than 2011. 



6. INCOME TAXES: 

The Company's effective income tax rate consists of the following:
 


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                                                  Sept 29,     Sept 23, 
                                                     2001         2000
                                               ----------   ----------
Combined basic federal and
 provincial average statutory rate                   41.0%        43.0%
Manufacturing and processing credit                  (2.0%)       (2.0%)
Effect of foreign operating losses                    1.0%         1.0%
Other                                                 1.0%         1.0%
                                               ----------   ----------
                                                     41.0%        43.0%
                                               ----------   ----------
                                               ----------   ----------

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7. CHANGES IN NON-CASH OPERATING WORKING CAPITAL ITEMS (thousands 
of dollars): 


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                                                    13 weeks ended
                                                -----------------------
                                                  Sept 29,     Sept 23, 
                                                     2001         2000
                                                -----------------------
Accounts receivable                             $      58   $      241
Inventories                                       (14,031)     (14,844)
Prepaid expenses                                       69           72
Accounts payable and accrued liabilities           (4,286)      (2,162)
Income taxes payable/recoverable                   (4,374)      (5,301)
                                                -----------------------
                                                $ (22,564)  $  (21,994)
                                                -----------------------

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8. COMMITMENTS & CONTINGENCIES (thousands of dollars): 

(a) Legal Proceedings  

In the course of its business, the Company from time to time 
becomes involved in various claims and legal proceedings.  In 
fiscal 1999, the Company and certain of its directors and officers
were served with a Statement of Claim under the Ontario Class 
Proceedings Act.  The Claim relates to subordinate voting shares 
purchased at the time of the Company's initial public offering in 
May, 1998.  Essentially, the suit seeks rescission of the 
plaintiff's purchase of shares made in May, 1998, or 
alternatively, that damages be paid equal to the diminution in 
value of the shares.  In March, 2001, the Court dismissed the 
plaintiff's claim for rescission. The plaintiff also brought a 
motion to certify the action as a class action on behalf of 
investors who purchased shares pursuant to the initial public 
offering. A motion to certify the action as a class action was 
heard in July, 2001, and in October, 2001, the motion for 
certification was granted.  No amounts have been provided in the 
accounts of the Company in respect of this matter.  The Company 
strongly believes the suit is wholly without merit and will 
vigorously defend it. 

(b) Operating Leases 

Minimum rentals for the next five years and thereafter, excluding 
rentals based upon revenue are as follows: 


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    2003                                       $    8,251
    2004                                       $    7,619
    2005                                       $    6,885
    2006                                       $    6,128
    2007                                       $    5,475
    Thereafter                                 $   15,096

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(c) Letters of Credit  

The Company had outstanding letters of credit in the amount of 
$10,811 (June 30, 2001 - $11,230; September 23, 2000 - $9,225) for
imports of raw materials and finished goods inventories to be 
received. 



9. SEGMENTED INFORMATION: 

Management has determined that the Company operates in one 
dominant industry and geographic segment which involves the 
design, manufacture and retail of fashion leather and suede 
apparel.  

FOR FURTHER INFORMATION PLEASE CONTACT:
Danier Leather Inc.
Jeffrey Wortsman
President and Chief Executive Officer
(416) 762-8175 ext. 302
(416) 762-7408 (FAX)
Email: leather@danier.com

or

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