NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  DANIER LEATHER INC.

TSX SYMBOL:  DL

OCTOBER 15, 2003 - 16:01 ET

Danier Leather Reports Fiscal 2004 First Quarter Results

TORONTO, ONTARIO--Danier Leather Inc. (TSX: DL) today announced 
its consolidated financial results for the 13 weeks ended 
September 27, 2003. 

HIGHLIGHTS ($000s, except earnings per share): 


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                         For the 13 Weeks Ended  For the 12 Months Ended
------------------------------------------------------------------------
                            Sept. 27,  Sept. 28,    Sept. 27,  Sept. 28,
                              2003       2002          2003       2002
------------------------------------------------------------------------
Sales                         $23,301     $22,695    $176,093   $181,246
EBITDA (loss)                ($5,018)    ($3,853)     $14,140    $22,215
Net Earnings (Loss)          ($4,108)    ($3,372)      $4,658     $9,668
EPS - Basic                   ($0.59)     ($0.49)       $0.67      $1.41
EPS - Fully Diluted               N/A         N/A       $0.66      $1.37
Number of Stores                  100          90         100         90
Retail Square Footage         375,664     328,848     375,664    328,848

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HIGHLIGHTS 

- Reached the 100-store milestone with the addition of one new 
mall store and a new power centre location 

- Accessory sales rose 9% to $4.9 million or 21% of total sales 

- Launched a television advertising campaign now airing in select 
major markets 

"The first quarter is traditionally our slowest and with a large 
increase in store count, our quarterly loss was expected to 
grow," said Jeffrey Wortsman, President and CEO of Danier 
Leather. "While consumer confidence issues continue to impact 
spending in the retail apparel sector, we are optimistic that the 
environment will improve over the course of fiscal 2004." 

Revenue for the first quarter rose 2.7% to $23.3 million compared 
with $22.7 million in the first quarter of fiscal 2003. Revenues 
benefited from an additional 10 stores in operation as compared 
with the same quarter last year. Comparable store sales declined 
7% for the quarter with most of the decrease occurring in August 
where general sectoral weakness was exacerbated by a major power 
outage impacting store traffic and operations in Ontario. As a 
result, monthly comparable store sales for August fell 20%. 
Comparable store sales were positive in September, rising 7% as 
compared with the same month last year. Danier's expanding line 
of accessories continued to perform strongly in the first 
quarter, with sales increasing 9% to $4.9 million, accounting for 
21% of total sales compared with 20% of total sales in Q1 2003. 

EBITDA(1) loss was $5.0 million as compared with a loss of $3.9 
million in the same quarter last year. Net loss was $4.1 million 
or $0.59 per share versus a loss of $3.4 million, or $0.49 per 
share in the first quarter of fiscal 2003. 

Selling, general and administrative (SG&A) expenses increased by 
7% to $16.9 million, reflecting salaries, benefits, rent and 
occupancy costs associated with the operation of 10 additional 
stores. 

Gross profit margin of 43.4% was lower than the 44.7% experienced 
in the first quarter of fiscal 2003. Gross profit margin remained 
stable in shopping mall stores but declined in power centre 
locations due to more aggressive markdowns for fall inventory 
from the prior season. At the end of fiscal 2003, fall inventory 
from the prior season was approximately $3 million higher than 
the prior year. By the end of the first quarter of fiscal 2004, 
the excess inventory has been reduced to approximately $0.9 
million and this excess inventory is expected to be substantially 
cleared by the end of the second quarter. 

Danier maintains a strong financial position with no long-term 
debt and working capital of $33.0 million. Book value per share 
increased to $9.23 from $8.56 in the first quarter of the prior 
year. The company continues to exploit its vertical integration 
and financial strength to optimize performance regardless of the 
operating environment. 

In the first quarter, Danier opened one power centre location 
(South Surrey, BC) and one mall store (Sarnia, Ontario). Danier 
expects to open two new stores - one shopping mall and one power 
centre location - during the second quarter. 

"Superior execution remains our number one priority," added Mr. 
Wortsman. "At every level, we are working towards flawless 
execution with initiatives aimed at driving efficiency and 
productivity. From design and merchandise planning to 
manufacturing and the sales floor, we are finding ways to 
strengthen our customer relationships and make the shopping 
experience more enjoyable and rewarding. We have also improved 
upon our marketing efforts with enhanced promotional materials 
and direct mail campaigns, and an exciting new television 
advertising campaign as we gear up for the holiday season." 

Danier will hold its Annual General Meeting today, Wednesday, 
October 15 at 4:00 p.m. Eastern Standard Time at The Design 
Exchange, 234 Bay Street in downtown Toronto. Shareholders and 
interested parties are encouraged to attend. The annual meeting 
will also be webcast live at www.danier.com 

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 100 shopping mall, street-front, and power 
centre stores, or through its corporate sales division and online 
through its website, www.danier.com. 

(1)EBITDA refers to earnings before interest expense, income tax, 
depreciation and amortization, and is a measure used by 
management to assess operating performance. EBITDA is a non-GAAP 
earnings measure and does not have a standardized meaning. It is 
therefore unlikely to be comparable to similar measures presented 
by other issuers. 

Note: This press release may contain forward-looking statements 
that involve risks, estimates, and uncertainties. Therefore, 
actual results may differ materially. Examples of such risks and 
uncertainties include those associated with product sales, demand 
for Danier's products, availability of raw materials, foreign 
sourcing and manufacturing, continued growth of the leather 
apparel industry, and competition and other associated risks with 
Danier's business. For an expanded discussion of such risks and 
uncertainties, please see the documents filed by Danier Leather 
Inc. with the Ontario Securities Commission and the Toronto Stock 
Exchange. Danier disclaims any responsibility to update or revise 
such forward-looking statements whether as a result of new 
information, future events or otherwise. 


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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
                           27, 2003    28, 2002    27, 2003    28, 2002
                         ---------------------- -----------------------
                        (unaudited) (unaudited) (unaudited) (unaudited)


Revenue                     $23,301     $22,695    $176,093    $181,246
Cost of sales                13,196      12,553      89,431      92,711
                         ---------------------- -----------------------
Gross profit                 10,105      10,142      86,662      88,535

Selling, general
 and administrative expenses 16,876      15,727      78,539      71,799
                         ---------------------- -----------------------
(Loss) earnings before interest
 and income taxes           (6,771)     (5,585)       8,123      16,736
Interest expense                 76          82          60         325
                         ---------------------- -----------------------
(Loss) earnings
 before income taxes        (6,847)     (5,667)       8,063      16,411
Provision for income tax    (2,739)     (2,295)       3,405       6,743
                         ---------------------- -----------------------
Net (loss) earnings
 for the period            $(4,108)    $(3,372)      $4,658      $9,668
                         ---------------------- -----------------------
                         ---------------------- -----------------------
Retained earnings,
 beginning of period         43,999      38,605      35,233      25,565
                         ---------------------- -----------------------
Retained earnings,
 end of period              $39,891     $35,233     $39,891     $35,233
                         ---------------------- -----------------------
                         ---------------------- -----------------------

(Loss) Earnings per Share:
 Basic                      ($0.59)     ($0.49)       $0.67       $1.41
 Diluted                        n/a         n/a       $0.66       $1.37

Weighted Average Number
 of Shares Outstanding:
 Basic                    6,919,554   6,908,552   6,916,386   6,867,611
 Diluted                  6,984,399   7,114,732   7,020,282   7,066,338
Number
 of Shares Outstanding    6,919,554   6,909,654   6,919,554   6,909,654




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


                                         September  September      June
                                          27, 2003   28, 2002  28, 2003
                                         ---------  ---------  --------
                                        (unaudited)(unaudited)
ASSETS
Current Assets
 Cash                                           $-         $-    $7,254
 Accounts receivable                           590        592       600
 Income taxes recoverable                    3,852      4,354        83
 Inventories (Note 3)                       57,456     52,333    37,029
 Prepaid expenses                              813        856       889
 Current portion of future income tax asset  1,051        670     1,044
                                         ---------  ---------  --------
                                            63,762     58,805    46,899

Other Assets
 Capital assets (Note 4)                    33,536     32,622    34,246
 Goodwill                                      342        342       342
                                         ---------  ---------  --------
                                           $97,640    $91,769   $81,487
                                         ---------  ---------  --------
                                         ---------  ---------  --------

LIABILITIES
Current Liabilities
 Bank overdraft                            $20,768    $19,314        $-
 Accounts payable and accrued liabilities   10,029     10,545    10,559
                                         ---------  ---------  --------
                                            30,797     29,859    10,559
Deferred lease inducements                   2,261      1,966     2,238
Future income tax liability                    696        784       696
                                         ---------  ---------  --------
                                            33,754     32,609    13,493
                                         ---------  ---------  --------

SHAREHOLDERS' EQUITY
 Share capital (Note 5)                     23,995     23,927    23,995
 Retained earnings                          39,891     35,233    43,999
                                         ---------  ---------  --------
                                            63,886     59,160    67,994
                                         ---------  ---------  --------
                                           $97,640    $91,769   $81,487
                                         ---------  ---------  --------
                                         ---------  ---------  --------



DANIER LEATHER INC.
CONSOLIDATED CASH FLOW STATEMENTS
(thousands of dollars)


                                                 For the 13 Weeks Ended
                                                 ----------------------
                                                  September   September
                                                   27, 2003    28, 2002
                                                 ----------------------
                                                (unaudited) (unaudited)
Operating activities
 Net loss for the period                          $ (4,108)    $(3,372)
 Items not affecting cash:
 Amortization                                         1,753       1,732
 Amortization of deferred lease inducements            (90)        (64)
 Future income taxes                                    (7)        (42)
                                                 ----------------------
                                                    (2,452)     (1,746)
Change in non-cash working capital items (Note 7)  (24,640)    (18,393)
                                                 ----------------------
Cash flows from operating activities               (27,092)    (20,139)
                                                 ----------------------

Financing activities
 Subordinate voting shares issued                         -          10
 Proceeds from lease inducements                        113         193
                                                 ----------------------
Cash flows from financing activities                    113         203
                                                 ----------------------

Investing activities
 Acquisition of capital assets                      (1,043)     (3,155)
                                                 ----------------------
Cash flows from investing activities                (1,043)     (3,155)
                                                 ----------------------

Decrease in cash                                   (28,022)    (23,091)
Cash, beginning of period                             7,254       3,777
                                                 ----------------------
Bank overdraft, end of period                    $ (20,768)   $(19,314)
                                                 ----------------------
                                                 ----------------------

Supplementary cash flow information:
 Interest paid                                           58          60
 Income taxes paid                                    1,037       2,317


/T/

DANIER LEATHER INC. 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

For the 13 week periods ended September 27, 2003 and September 
28, 2002 



1. SIGNIFICANT ACCOUNTING POLICIES: 

Basis of Presentation: 

The interim financial statements presented herein follow the same 
accounting policies and their methods of application as the 2003 
annual financial statements. 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 2003 Annual Report. 



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 27,       September 28,        
                           2003              2002          June 28, 2003
                   ------------------  ------------------  -------------
Raw materials             $  5,289           $  2,861          $   4,970
Work-in-process              2,852              4,410              2,228
Finished goods              49,315             45,062             29,831
                   ------------------  ------------------  -------------
                          $ 57,456           $ 52,333           $ 37,029
                   ------------------  ------------------  -------------
                   ------------------  ------------------  -------------


4. CAPITAL ASSETS (thousands of dollars):


                          September 27, 2003          September 28, 2002
                        ------------------------------------------------
                                Accumu- Net Book        Accumu- Net Book
                                lated                   lated
                        Cost    Amorti-  Value  Cost    Amorti-   Value
                                zation                  zation
                        ------------------------------------------------
Land                    $ 1,000 $     - $ 1,000 $ 1,000 $     - $ 1,000
Building                  7,035     945   6,090   6,780     689   6,091
Leasehold improvements   27,244  10,673  16,571  23,172   8,856  14,316
Furniture and
 equipment               12,047   6,379   5,668  11,416   5,867   5,549
Computer hardware and
 software                 9,342   5,135   4,207   9,739   4,073   5,666
                        ------------------------------------------------
                        $56,668 $23,132 $33,536 $52,107 $19,485 $32,622
                        ------------------------------------------------
                        ------------------------------------------------

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


/T/

(a) Authorized:

1,224,329 Multiple Voting Shares
Unlimited Subordinate Voting Shares
Unlimited Class A Preference Shares

(b) Issued:


                                       Sept 27,    Sept 28,    June 28,
                                        2003        2002        2003
                                       --------------------------------
1,224,329 Multiple Voting Shares
 (September 28, 2002 and
  June 28, 2003 - 1,224,329)              (i)         (i)         (i)
5,695,225 Subordinate Voting Shares
 (September 28, 2002 - 5,685,325
  and June 28, 2003 - 5,695,225)       23,995      23,927      23,995
                                       --------------------------------
                                     $ 23,995    $ 23,927    $ 23,995
                                       --------------------------------
                                       --------------------------------
 (i) Nominal

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(c) Normal Course Issuer Bid: 

During the 13 weeks ended September 27, 2003 and 13 weeks ended 
September 28, 2002, there were no shares repurchased under the 
Normal Course Issuer Bid. 

(d) Stock-Based Compensation Plan: 

The Company has reserved 1,025,000 Subordinate Voting Shares for 
issuance under its Stock Option Plan. As at September 27, 2003, 
there were 774,400 options outstanding with exercise prices 
ranging from $6.02 to $17.94. Of these outstanding options, 
551,150 are exercisable. Further details of the Stock Option Plan 
are contained in Note 6(e) of the consolidated financial 
statements contained in the 2003 Annual Report. 

The Company uses settlement accounting to account for its stock 
option plan. Consideration paid by employees and directors, which 
represents the exercise price on the exercise of stock options, 
is recorded as share capital. 

During the 13 weeks ended September 27, 2003, the Company granted 
44,000 stock options with an exercise price of $10.96 which 
represented the market price of the stock. Had compensation cost 
been determined using the fair value-based method at the grant 
date of the stock options awarded to employees and directors, the 
net earnings and earnings per share would have been reduced to 
the pro forma amounts indicated in the following table: 


/T/

                             13 Weeks Ended              13 Weeks Ended
                         September 27, 2003           September 28, 2002
                         ----------------------   ----------------------
                         As Reported  Pro forma   As Reported  Pro forma
                         ----------------------   ----------------------
Net earnings                ($4,108)   ($4,253)      ($3,372)   ($3,519)
Basic loss per share         ($0.59)    ($0.61)       ($0.49)    ($0.51)
Diluted loss per
 share                          n/a        n/a           n/a        n/a

/T/

To determine compensation cost, the fair value of stock options 
is recognized on a straight-line basis over the vesting period of 
the options. 

The pro forma effect on net income of the period is not 
representative of the pro forma effect on net income of future 
periods because it does not take into consideration the pro forma 
compensation cost related to options awarded prior to June 29, 
2002. 

The fair value of options granted was estimated on the grant date 
using the Black-Scholes option-pricing model with the following 
assumptions for the stock options granted since the beginning of 
the year: 


/T/

       Expected dividend yield                   None
       Expected volatility                        54%
       Risk-free interest rate                  4.50%
       Expected life                         10 years

/T/

The weighted average fair value of stock options granted during 
the 13 weeks ended September 27, 2003 was $7.54. 

The Black-Scholes option-pricing model was developed for use in 
estimating the fair value of traded options, which have no 
vesting restrictions and are fully transferable. In addition, the 
Black-Scholes model requires the use of subjective assumptions 
including the expected stock price volatility. Because the 
Company's stock option plan has characteristics different from 
those of traded options, and because changes in the subjective 
assumptions can have a material effect on the fair value 
estimate, the Black-Scholes option-pricing model does not 
necessarily provide a reliable single measure of the fair value 
of options granted. 

6. INCOME TAXES: 

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


/T/

                                       September 27,     September 28,
                                           2003              2002
                                       -------------     -------------
Combined basic federal and
 provincial average statutory rate         37.6%             39.0%
Manufacturing and processing credit        (0.9%)            (1.0%)
Effect of foreign operating
 losses                                     2.8%              2.0%
Other                                       0.5%              0.5%
                                       -------------     -------------
                                           40.0%              40.5%
                                       -------------     -------------
                                       -------------     -------------

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


                                                13 weeks ended
                                          ------------------------------
                                           September 27,   September 28,
                                              2003            2002
                                          ------------------------------
Accounts receivable                                  $10          ($108)
Income tax recoverable                           (3,769)         (4,434)
Inventories                                     (20,427)        (13,671)
Prepaid expenses                                      76           (253)
Accounts payable and accrued liabilities           (530)              73
                                          ------------------------------
                                               ($24,640)       ($18,393)
                                          ------------------------------

/T/

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 Class 
Proceedings Act (Ontario). 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 damages 
be paid equal to the alleged diminution in value of the shares. 
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. The trial commenced in May 
2003 and is currently underway. No amounts have been provided in 
the accounts of the Company in respect of any of the amounts 
being claimed in this matter. The Company strongly believes the 
suit is wholly without merit and continues to vigorously defend 
it. In that regard, during the fourth quarter of 2003, the 
Company provided approximately $1,200 for future legal and 
professional fees in defense of this action. Legal and 
professional fees of approximately $300 were incurred during the 
first quarter of 2004 and were charged against this provision. 

(b) Operating Leases 

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


/T/

   2004                                                 $ 11,757
   2005                                                 $ 10,788
   2006                                                $   9,898
   2007                                                $   9,200
   2008                                                $   7,488
   Thereafter                                           $ 16,120

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 (c) Letters of Credit 

The Company had outstanding letters of credit in the amount of 
$9,053 (September 28, 2002 - $11,842; June 28, 2003 - $7,237) for 
imports of finished goods inventories to be received. 

9. FINANCIAL INSTRUMENTS (thousands of dollars): 

The Company purchases a significant portion of its finished goods 
inventory from foreign vendors with payment terms in U.S. 
dollars. As at September 27, 2003, the Company had foreign 
exchange forward contracts to purchase U.S. $4,000 ($5,844) at an 
average rate of US$1.00 = $1.4611 maturing up to December 2003. 
Based on the closing rate of the U.S. dollar as at September 27, 
2003, the fair value of the Company's foreign exchange forward 
contracts as disclosed above is $5,424 resulting in an unrealized 
loss of $420. 

10. 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 and accessories. 

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

or

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