NEWS RELEASE TRANSMITTED BY CCN NEWSWIRE

FOR:  DANIER LEATHER INC.

TSE SYMBOL:  DL

AUGUST 9, 2001 - 12:00 EDT

Danier Leather Reports Record Year End Results-Sales Rise
16%, Earnings Per Share Up 18%

TORONTO, ONTARIO-- 


/T/

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

--------------------------------------------------------------
                            53 Weeks        52 Weeks
                              Ended           Ended         %
                           Jun 30, 01      Jun 24, 00      chg
--------------------------------------------------------------
Sales ($000)                 $165,418        $143,011      16%
EBITDA ($000)                 $25,530         $22,556      13%
Net Earnings ($000)           $12,078         $10,710      13%
EPS - Basic                     $1.75           $1.48      18%
EPS - Fully Diluted             $1.73           $1.48      17%
--------------------------------------------------------------

/T/

Danier Leather Inc. (TSE: DL) today announced record results for 
the year ended June 30, 2001. 

For the 53-week year ended June 30, 2001, net earnings increased 
13% to $12.1 million, or $1.75 per basic share ($1.73 per share 
fully diluted), compared to $10.7 million, or $1.48 per basic and 
fully diluted share for the 52-week year ended June 24, 2000. 
Basic and fully diluted earnings per share increased by 18% and 
17%, respectively, due to higher earnings and shares repurchased 
under the normal course issuer bid.  

Earnings before interest, taxes, and depreciation and 
amortization, (EBITDA) increased 13% to $25.5 million compared to 
$22.6 million last year. Danier's EBITDA to sales ratio of 15.4% 
ranks number one for Canadian publicly traded specialty apparel 
retailers for the third year in a row and also ranks among the top
publicly traded U.S. specialty apparel retailers.  

Revenue for the 53-week year ended June 30, 2001, increased 16% to
$165.4 million compared to $143.0 million, for the 52-week period 
last year. Comparable stores sales increased 8%. This marks the 
fourth consecutive year of comparable store sales increases. 

The gross margin rate for the year ended June 30, 2001 was 49.9% 
compared to 51.1% for the year ended June 24, 2000. As a 
percentage of sales, selling, general and administrative costs 
decreased to 36.8% for fiscal 2001 from 37.8%, in fiscal 2000. 

Jeffrey Wortsman, President and Chief Executive Officer commented,
"Danier has delivered another record year of revenue and earnings 
growth even in a weaker retail environment for clothing during the
last half of the year. Accessory sales continued to grow rapidly 
increasing by almost 51% and now represent 12% of total company 
sales, compared with 9% last year. Gross margin percentages dipped
compared to our record performance last year. This was mostly 
attributable to clearance activity in the latter part of the year.
We did well to move inventory at lower margins more quickly rather
than trying to wait it out in an attempt to match prior year 
margins. We are satisfied with our inventory position at the end 
of the year and look forward to new and exciting merchandise to 
flow into the stores."  

During the fourth quarter, a historically weak retail period, 
comparable store sales were down 3% and gross margin declined to 
44.4% compared with 50.7% last year. Selling, general and 
administrative expenses as a percentage of sales decreased to 
46.8% in the fourth quarter compared with 50.9% last year. This 
helped keep the loss within historical levels. The net loss was 
$0.3 million compared with $0.1 million last year and $0.4 million
the year before. 

"We are cautiously optimistic for next year," said Jeffrey 
Wortsman, President and Chief Executive Officer. "Inventory 
purchases for this fall are being planned conservatively with 
receipts expected to be at the same level as fiscal 2001 even with
the addition of new stores. We are optimistic that even in an 
uncertain retail environment, growth can be achieved by better 
execution, turning inventory faster, using our Toronto 
manufacturing facilities to quickly add inventory and repeat fast 
selling styles and by having the right merchandise in the stores 
at the right price. We are also continuing to grow our store base 
next year with the opening of 4 to 5 power centre locations and a 
flagship store in the fashionable Bay & Bloor area of Toronto. In 
addition, we are increasing the size of 4 shopping mall stores to 
accommodate more accessories and growth in our product line. We 
continue to pursue our strategies with respect to our U.S. retail 
and E-Commerce initiatives." Mr. Wortsman added. 

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 83 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 4:00 p.m. Eastern Time to discuss the 
results. Please dial 1-888-722-1090 (U.S. and Canada) at least 
five minutes prior to the call. The call will also be webcast at 
www.q1234.com. 


/T/

DANIER LEATHER INC.     
CONSOLIDATED STATEMENTS OF EARNINGS/(LOSS)   
AND RETAINED EARNINGS     
(thousands of dollars, except per share amounts)     
      
      
                          For the 4th Quarter Ended  For the Year Ended
                          -------------------------  -------------------
                             June 30,   June 24,     June 30,   June 24,
                                2001       2000         2001       2000
                          -------------------------  -------------------
                          (unaudited)(unaudited)
                           (14 weeks) (13 weeks)   (53 weeks) (52 weeks)

Revenue                    $  25,407  $  24,478    $ 165,418  $ 143,011 
Cost of sales                 14,133     12,069       82,818     69,865 
                          -------------------------  -------------------

Gross profit                  11,274     12,409       82,600     73,146 
Selling general and 
 administrative expenses      11,902     12,455       60,902     54,051 
                          -------------------------  -------------------
Earnings (loss) before 
 interest and income taxes      (628)       (46)      21,698     19,095 
Interest expense (income)-net     (2)       (59)         583         33 
                          -------------------------  -------------------
Earnings (loss) before 
 income taxes                   (626)        13       21,115     19,062 
Provision for income taxes      (314)        68        9,037      8,352 
                          -------------------------  -------------------

Net earnings (loss)        $    (312) $     (55)   $  12,078  $  10,710 
                          -------------------------  -------------------
                          -------------------------  -------------------
      
Retained earnings,
 beginning of period       $  28,192  $  18,207    $  17,209  $   7,655 
Future income tax adjustment       -       (118)           -       (118)
                          -------------------------  -------------------
Retained earnings, 
 beginning of period 
 as restated                  28,192     18,089       17,209      7,537 
Share purchases                    -       (825)      (1,407)    (1,038)
                          -------------------------  -------------------
Retained earnings, 
 end of period                27,880     17,209       27,880     17,209 
                          -------------------------  -------------------
                          -------------------------  -------------------
      
Net earnings per share     
   Basic                      ($0.05)    ($0.01)       $1.75      $1.48 
   Fully diluted                 n/a        n/a        $1.73      $1.48 
      
Basic Number of 
 Shares Outstanding:     
   Weighted Average        6,835,329  7,138,861    6,899,216  7,223,108 
   Actual                  6,835,329  7,032,329    6,835,329  7,032,329 



DANIER LEATHER INC.    
CONSOLIDATED BALANCE SHEETS   
(thousands of dollars)    
     
                                                June 30,        June 24,
                                                   2001            2000 
                                              ----------      ----------
     
ASSETS    
Current Assets    
   Cash                                       $   1,663       $     775  
   Accounts receivable                              664             762  
   Inventories                                   39,227          35,124  
   Prepaid expenses                                 459             197  
   Current portion of future income tax asset       932           1,163  
                                              ----------      ----------
                                                 42,945          38,021  
     
Other Assets    
   Capital assets                                25,151          20,631  
   Goodwill                                         342             355  
                                              ----------      ----------

                                              $  68,438       $  59,007  
                                              ----------      ----------
                                              ----------      ----------
     
LIABILITIES    
Current Liabilities    
   Bank overdraft                             $   3,486       $       -    
   Accounts payable and accrued liabilities      11,945          13,208  
   Income taxes payable                           1,184           3,251  
   Current portion of long-term debt                  -             270  
                                              ----------      ----------

                                                 16,615          16,729  

Long-term debt                                        -             470  
Future income tax liability                         531             363  
                                              ----------      ----------

                                                 17,146          17,562  
                                              ----------      ----------
     
SHAREHOLDERS' EQUITY     
   Share capital                                 23,412          24,236  
   Retained earnings                             27,880          17,209  
                                              ----------      ----------

                                                 51,292          41,445  
                                              ----------      ----------

                                              $  68,438       $  59,007  
                                              ----------      ----------
                                              ----------      ----------
       


DANIER LEATHER INC.     
CONSOLIDATED STATEMENTS OF CASH FLOW   
(thousands of dollars)     
      
                         For the 4th Quarter Ended  For the Year Ended
                           ----------------------  --------------------- 
                            June 30,    June 24,    June 30,   June 24,
                              2001        2000        2001       2000
                           ----------------------  --------------------- 
                          (unaudited) (unaudited)
                           (14 weeks)  (13 weeks)  (53 weeks) (52 weeks)
OPERATING ACTIVITIES     
 Net earnings (loss)       $    (312)  $     (55)  $  12,078  $  10,710
 Items not affecting cash:     
 Amortization                    526         716       3,832      3,461 
 Loss on disposal of capital
  assets                         113         227         113        227 
 Future income taxes            (169)        186         (53)       186 
                           ----------------------  --------------------- 
                                 158       1,074      15,970     14,584 
 Net change in non-cash working
  capital items               (3,074)     (7,798)     (7,597)    (4,163)
                           ----------------------  --------------------- 
Cash flows from operating
 activities                   (2,916)     (6,724)      8,373     10,421 
                           ----------------------  --------------------- 
      
FINANCING ACTIVITIES     
 Subordinate voting shares
  purchased                        -      (1,574)     (2,231)    (2,006)
 Future income taxes related
  to the IPO                     452         474         452        474 
 Obligations under capital
  leases                           -         (43)       (740)      (247)
                           ----------------------  --------------------- 
Cash flows from financing
 activities                      452      (1,143)     (2,519)    (1,779)
                           ----------------------  --------------------- 
      
INVESTING ACTIVITIES     
 Acquisition of capital
  assets                      (2,625)     (1,493)     (8,452)    (9,495)
                           ----------------------  --------------------- 
Cash flows from investing
 activities                   (2,625)     (1,493)     (8,452)    (9,495)
                           ----------------------  --------------------- 
      
Decrease in cash              (5,089)     (9,360)     (2,598)      (853)
Cash, beginning of period      3,266      10,135         775      1,628 
                           ----------------------  --------------------- 
Cash/(bank overdraft),
 end of period             $  (1,823) $      775  $    (1,823) $    775 
                           ----------------------  --------------------- 
                           ----------------------  --------------------- 
      
Comprised of:       
 Cash                          1,663         775        1,663       775 
 Bank overdraft               (3,486)          -       (3,486)        - 
                           ----------------------  --------------------- 
                           $  (1,823) $      775  $    (1,823) $    775 
                           ----------------------  --------------------- 
                           ----------------------  --------------------- 
      
Supplementary cash flow
  information:     
 Interest paid                     9          18          639       183 
 Income taxes paid             2,174       1,170       10,954     5,934 
      

/T/

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

or

Investor Relations Contact
Jeffrey Wortsman
President and Chief Executive Officer
(416) 762-8175 ext. 302
(416) 762-7408 (FAX)
leather@danier.com