NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  DANIER LEATHER INC.

TSX SYMBOL:  DL

APRIL 15, 2004 - 16:00 ET

Danier Leather Reports Results For Third Quarter Of
Fiscal 2004

TORONTO, ONTARIO--(CCNMatthews - Apr 15, 2004) - Danier Leather 
Inc. (TSX: DL) today announced its consolidated financial results 
for the third quarter and 39 weeks ended March 27, 2004. 


/T/

HIGHLIGHTS ($000s, except earnings per share): 
---------------------------------------------------------------------
                          13 Weeks Ended           39 Weeks Ended    
---------------------------------------------------------------------
                       March 27,   March 29,    March 27,   March 29,
                            2004        2003         2004        2003

---------------------------------------------------------------------
Sales                    $46,174     $41,414     $148,768    $150,724
---------------------------------------------------------------------
EBITDA(1)                 $2,545      $2,394      $14,525     $20,198
---------------------------------------------------------------------
Net Earnings                $531        $454       $5,407      $8,859
---------------------------------------------------------------------
EPS Basic                  $0.08       $0.07        $0.78       $1.28
---------------------------------------------------------------------
EPS Diluted                $0.08       $0.06        $0.76       $1.25
---------------------------------------------------------------------
Number of Stores(a)          102          97          102          97
---------------------------------------------------------------------
Square Footage(a)        383,726     366,745      383,726     366,745
---------------------------------------------------------------------
(a) At quarter end

/T/

HIGHLIGHTS  

- Revenues increase 11% and comparable store sales increase 7% as 
sales improve in the latter part of the quarter  

- Sales of higher-margin accessories rise 29% and increase 15% 
year to date 

"While conditions remained challenging in the first part of the 
quarter, sales improved considerably as the quarter progressed," 
said Jeffrey Wortsman, President and CEO of Danier Leather. 
"Danier's mall stores showed particular strength as customers 
began to embrace our fresh and vibrant leather colours for 
spring, including a variety of pinks, blues, oranges, and 
yellows. We continue to respond with attractive styles that are 
creating more colourful and exciting merchandise displays and 
generating strong interest." 

Revenue for the third quarter increased 11% to $46.2 million on a 
comparable store sales increase of 7%. EBITDA for the quarter was 
$2.5 million versus $2.4 million for the same period last year. 
Net earnings were $0.53 million or $0.08 per share ($0.08 
diluted), as compared with $0.45 million or $0.07 per share 
($0.06 diluted) for the same period last year. 

The increase in net earnings for the quarter is mainly 
attributable to higher sales and a decline in selling, general 
and administrative (SG&A) expenses as a percentage of sales 
(44.5% compared with 45.2% during the same period last year). In 
dollar terms, SG&A expenses increased by approximately 10% to 
$20.5 million from $18.7 million, the result of higher 
advertising expenses as well as salaries, benefits and rent and 
occupancy costs associated with the operation of five additional 
stores over the same quarter last year.  

Danier maintained a strong financial position at quarter-end with 
approximately $21.9 million in cash ($3.17 per share), no 
long-term debt and working capital of $44.8 million. Inventory of 
$33.2 million was lower than last year's level of $41.2 million 
due to improved merchandise planning and clearance activity. Book 
value per share increased to $10.61 from $10.33 in the prior 
year. 

Year-to-date revenue declined 1% to $148.8 million from $150.7 
million on a 7% decline in comparable store sales. EBITDA 
decreased to $14.5 million from $20.2 million for the first nine 
months of fiscal 2003. Net earnings decreased to $5.4 million, or 
$0.78 per share ($0.76 diluted) from $8.9 million, or $1.28 per 
share ($1.25 diluted). Results for the first half of fiscal 2004 
were impacted by a challenging retail apparel environment and a 
fashion shift towards shorter-length outerwear which typically 
carries a lower average price point than longer garments.  

Danier's leather and suede accessories line continues to grow, 
with sales increasing 29% for the quarter and 15% year-to-date. 
Accessory sales represented 17% of total company sales during the 
third quarter.  

Gross profit as a percentage of revenue decreased to 46.2% from 
46.8% for the third quarter and to 49.2% from 49.9% on a 
year-to-date basis. More aggressive markdowns and clearance 
activity accounted for the change in gross profit margins. 
Margins in the first half of the year were also impacted by 
realized losses of $0.8 million resulting from U.S. dollar 
foreign exchange forward contracts that matured between July and 
December 2003. 

Over the next several months, Danier expects to close four 
underperforming stores whose leases are expiring or will be taken 
over by another retailer. The company expects to open two new 
stores - one mall store and one power centre location - in the 
first half of fiscal 2005.  

"We continue to focus on execution and driving the top line while 
carefully managing our expenses and inventories," added Mr. 
Wortsman. Our financial position, brand and long-term growth 
strategy are all fundamentally strong and will help to bring 
steady improvement to our operating and financial results over 
time." 

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 102 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. 

Investors, analysts and the media are invited to participate in a 
conference call today at 4:30 PM Eastern Time to discuss the 
results. Please dial 416-695-7848 in the Toronto area or 
1-888-280-8771 (rest of Canada and the U.S.) and quote the Danier 
Leather Inc. conference call with chairperson Jeffrey Wortsman at 
least five minutes prior to the call. The call will also be 
webcast at www.danier.com or at www.ccnmatthews.com.  


/T/

DANIER LEATHER INC.
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(thousands of dollars, except earnings per share
 and number of shares outstanding)
(unaudited)
--------------------------------------------------------------------
--------------------------------------------------------------------

                      For the 13        For the 39        For the 12
                     Weeks Ended       Weeks Ended      Months Ended
               ----------------- ----------------- -----------------
                  March    March    March    March    March    March
               27, 2004 29, 2003 27, 2004 29, 2003 27, 2004 29, 2003
               ----------------- ----------------- -----------------

Revenue         $46,174  $41,414 $148,768 $150,724 $173,531 $176,556
Cost of sales    24,840   22,034   75,535   75,514   88,809   88,642
               ----------------- ----------------- -----------------
Gross profit     21,334   19,380   73,233   75,210   84,722   87,914
Selling, general
 and
 administrative
 expenses        20,542   18,718   63,967   60,208   81,149   74,363
               ----------------- ----------------- -----------------
Earnings before
 interest and
 income taxes       792      662    9,266   15,002    3,573   13,551
Interest (income)
 expense           (109)    (100)     102      113       55      108
               ----------------- ----------------- -----------------
Earnings before
 income taxes       901      762    9,164   14,889    3,518   13,443
Provision for
 income tax
 (Note 6)           370      308    3,757    6,030    1,576    5,424
               ----------------- ----------------- -----------------
Net earnings
 for the period $   531  $   454 $  5,407 $  8,859 $  1,942 $  8,019
               ----------------- ----------------- -----------------
               ----------------- ----------------- -----------------

Retained
 earnings,
 beginning of
 period          48,875   47,010   43,999   38,605   47,464   39,445
               ----------------- ----------------- -----------------
Retained
 earnings,
 end of period  $49,406  $47,464 $ 49,406 $ 47,464 $ 49,406 $ 47,464
               ----------------- ----------------- -----------------
               ----------------- ----------------- -----------------

Earnings per
 Share:
 Basic            $0.08    $0.07    $0.78    $1.28    $0.28    $1.16
 Diluted          $0.08    $0.06    $0.77    $1.25    $0.28    $1.13

Weighted
 Average
 Number of
 Shares
 Outstanding:
  Basic       6,919,554         6,919,554         6,919,554
                       6,916,185         6,911,663         6,903,982
  Diluted     6,975,163         6,981,370         6,980,287
                       7,048,885         7,078,141         7,097,112
Number of Shares
 Outstanding  6,919,554         6,919,554         6,919,554
                       6,919,554         6,919,554         6,919,554


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

                     March 27, 2004   March 29, 2003   June 28, 2003
                     --------------  ---------------  --------------
                         (unaudited)      (unaudited)
ASSETS
Current Assets
 Cash                      $ 21,910          $ 8,304         $ 7,254
 Accounts receivable          1,277            1,384             600
 Income taxes
  recoverable                     -                -              83
 Inventories (Note 3)        33,247           41,237          37,029
 Prepaid expenses               595              781             889
 Current portion of
  future income tax
  asset                       1,069              664           1,044
                     --------------  ---------------  --------------
                             58,098           52,370          46,899

Other Assets
 Capital assets
  (Note 4)                   31,276           33,678          34,246
 Goodwill                       342              342             342
                     --------------  ---------------  --------------
                           $ 89,716         $ 86,390        $ 81,487
                     --------------  ---------------  --------------
                     --------------  ---------------  --------------

LIABILITIES
Current Liabilities
 Accounts payable and
  accrued liabilities      $ 11,641         $ 10,875        $ 10,559
 Income taxes payable         1,656            1,323               -
                     --------------  ---------------  --------------
                             13,297           12,198          10,559
Deferred lease
 inducements                  2,322            1,949           2,238
Future income tax
 liability                      696              784             696
                     --------------  ---------------  --------------
                             16,315           14,931          13,493
                     --------------  ---------------  --------------

SHAREHOLDERS' EQUITY
 Share capital (Note 5)      23,995           23,995          23,995
 Retained earnings           49,406           47,464          43,999
                     --------------  ---------------  --------------
                             73,401           71,459          67,994
                     --------------  ---------------  --------------
                           $ 89,716         $ 86,390        $ 81,487
                     --------------  ---------------  --------------
                     --------------  ---------------  --------------



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


                  For the 13 Weeks Ended      For the 39 Weeks Ended
                  ----------------------   -------------------------
                     March 27,  March 29,        March 27,  March 29,
                         2004       2003             2004       2003
                  ----------------------   -------------------------
                   (unaudited)(unaudited)      (unaudited)(unaudited)
Operating activities
 Net earnings for
  the period            $ 531      $ 454          $ 5,407    $ 8,859
 Items not affecting
  cash:
 Amortization           1,753      1,732            5,259      5,196
 Amortization of
  deferred lease
  inducements             (96)       (73)            (280)      (207)
 Future income taxes       29         24              (25)       (36)
                  ----------------------   -------------------------
                        2,217      2,137           10,361     13,812
Change in non-cash
 working capital
 items (Note 7)         6,144    (12,081)           6,220     (2,007)
                  ----------------------   -------------------------
Cash flows from
 operating
 activities             8,361     (9,944)          16,581     11,805
                  ----------------------   -------------------------
Financing activities
 Issuance of
  subordinate
  voting shares             -         56                -         78
 Proceeds from lease
  inducements               -          -              364        319
                  ----------------------   -------------------------
Cash flows from
 financing activities       -         56              364        397
                  ----------------------   -------------------------
Investing activities
 Acquisition of
  capital assets         (322)    (1,281)          (2,289)    (7,675)
                  ----------------------   -------------------------
Cash flows from
 investing activities    (322)    (1,281)          (2,289)    (7,675)
                  ----------------------   -------------------------

Increase (decrease)
 in cash                8,039    (11,169)          14,656      4,527
Cash, beginning
 of period             13,871     19,473            7,254      3,777
                  ----------------------   -------------------------
Cash, end of period  $ 21,910    $ 8,304         $ 21,910    $ 8,304
                  ----------------------   -------------------------
                  ----------------------   -------------------------

Supplementary cash
 flow information:
  Interest paid             5          7              223        219
  Income taxes paid        10      1,251            2,043      5,241


                         DANIER LEATHER INC.
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 For the 13 and 39 week periods ended
                   March 27, 2004 and March 29, 2003
                             (Unaudited)

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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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                      March 27, 2004  March 29, 2003   June 28, 2003
                      --------------  --------------   -------------

Raw materials               $  5,231        $  4,881        $  4,970
Work-in-process                1,175           1,581           2,228
Finished goods                26,841          34,775          29,831
                      --------------  --------------   -------------

                            $ 33,247        $ 41,237        $ 37,029
                      --------------  --------------   -------------
                      --------------  --------------   -------------

/T/

4. CAPITAL ASSETS (thousands of dollars): 


/T/

                             March 27, 2004           March 29, 2003
                   ------------------------  -----------------------
                            Accumu-                  Accumu-
                              lated     Net            lated     Net
                            Amorti-    Book          Amorti-    Book
                      Cost   zation   Value     Cost  zation   Value
                   ------------------------  -----------------------

Land               $ 1,000  $     - $ 1,000  $ 1,000 $     - $ 1,000
Building             6,885    1,171   5,714    6,785     907   5,878
Leasehold
 improvements       27,930   12,221  15,709   26,347  10,422  15,925
Furniture and
 equipment          12,590    7,078   5,512   12,400   6,542   5,858
Computer hardware
 and software        9,510    6,169   3,341   10,095   5,078   5,017
                   ------------------------  -----------------------

                   $57,915  $26,639 $31,276  $56,627 $22,949 $33,678
                   ------------------------  -----------------------
                   ------------------------  -----------------------

                              June 28, 2003
                   ------------------------
                            Accumu-
                              lated     Net
                            Amorti-    Book
                      Cost   zation   Value
                   ------------------------

Land               $ 1,000  $     - $ 1,000
Building             6,988      832   6,156
Leasehold
 improvements       26,492    9,899  16,593
Furniture and
 equipment          11,918    6,029   5,889
Computer hardware
 and software        9,225    4,617   4,608
                   ------------------------

                   $55,623  $21,377 $34,246
                   ------------------------
                   ------------------------

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

(a) Authorized: 


/T/

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

/T/

(b) Issued: 


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                                   March 27,    March 29,    June 28,
                                       2004         2003        2003
                                   --------     --------    --------
1,224,329 Multiple Voting Shares
 (March 29, 2003 and June 28, 2003
  - 1,224,329)                           (1)          (1)         (1)
5,695,225 Subordinate Voting Shares
 (March 29, 2003 and June 28, 2003
  - 5,695,225)                       23,995       23,995      23,995
                                  ---------    ---------    --------
                                   $ 23,995     $ 23,995    $ 23,995
                                  ---------    ---------    --------
                                  ---------    ---------    --------
(1) Nominal

/T/

(c) Normal Course Issuer Bid: 

During the 39 weeks ended March 27, 2004 and 39 weeks ended March 
29, 2003, 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 March 29, 2004, there 
were 674,400 options outstanding with exercise prices ranging 
from $6.02 to $17.94. Of these outstanding options, 543,650 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 39 weeks ended March 27, 2004, 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
                                March 27, 2004        March 29, 2003
                          --------------------   -------------------
                                As         Pro         As        Pro
                          Reported       forma   Reported      forma
                          --------------------   -------------------

Net earnings                  $531        $416       $454       $297
Basic earnings per share     $0.08       $0.06      $0.07      $0.04
Diluted earnings per share   $0.08       $0.06      $0.06      $0.04

                                39 Weeks Ended        39 Weeks Ended
                                March 27, 2004        March 29, 2003
                          --------------------   -------------------
                                As         Pro         As        Pro
                          Reported       forma   Reported      forma
                          --------------------   -------------------

Net earnings                $5,407      $5,002     $8,859     $8,418
Basic earnings per share     $0.78       $0.72      $1.28      $1.22
Diluted earnings per share   $0.77       $0.72      $1.25      $1.19

/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 39 weeks ended March 29, 2004 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/

                                              March 27,     March 29,
                                                  2004          2003
                                             ---------     ---------
Combined basic federal and provincial
 average statutory rate                          37.0%         39.0%
Manufacturing and processing credit              (0.9%)        (1.0%)
Effect of foreign operating losses                3.9%          2.0%
Other                                             1.0%          0.5%
                                             ---------     ---------
                                                 41.0%         40.5%
                                             ---------     ---------
                                             ---------     ---------

/T/

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


/T/

                                    13 weeks ended    39 weeks ended
                                ------------------  ----------------
                                 Mar 27,    Mar 29,  Mar 27,  Mar 29,
                                   2004       2003     2004     2003
                                ------------------  ----------------
Accounts receivable              $5,385     $1,239    ($677)   ($900)
Inventories                       9,503     (2,401)   3,782   (2,575)
Prepaid expenses                    (28)       (81)     294     (178)
Accounts payable and accrued
 liabilities                     (9,053)   (10,149)   1,082      403
Income taxes payable                337       (689)   1,739    1,243
                                ------------------  ----------------
                                 $6,144   ($12,081)  $6,220  ($2,007)
                                ------------------  ----------------

/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 was completed in January 2004. It is expected that the 
Judge will take some time to write Reasons for Judgment and 
render his determination. 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, the Company has a provision of $200 for future legal 
and professional fees in defense of this action. 



(b) Operating Leases 

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


/T/

 2005                                                       $ 11,680
 2006                                                       $ 10,815
 2007                                                       $ 10,237
 2008                                                       $  9,063
 2009                                                       $  7,162
 Thereafter                                                 $ 13,614

/T/

(c) Letters of Credit 

The Company had outstanding letters of credit in the amount of 
$1,917 (March 29, 2003 - $1,731; June 28, 2003 - $7,237) for 
imports of finished goods inventories to be received. 

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.
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
Senior Vice-President and Chief Financial Officer
(416) 762-8175 ext. 328
(416) 762-6072 (FAX)
Email: bryan@danier.com