NEWS RELEASE TRANSMITTED BY CCN NEWSWIRE

FOR:  DANIER LEATHER INC.

TSE SYMBOL:  DL

JANUARY 31, 2002 - 11:21 EST

Danier Leather Reports Second Quarter Results For Fiscal
2002; Sales Rise 24%, Earnings Per Share Up 17%

TORONTO, ONTARIO-- 

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


/T/

               13 Weeks Ended                26 Weeks Ended 
               --------------                ---------------
-----------------------------------------------------------------------
               Dec. 29,   Dec. 23,    %     Dec.29,      Dec 23,    chg
                   2001       2000   chg       2001         2000     %
-----------------------------------------------------------------------
Sales           $86,218    $69,573   24%   $107,644      $91,510    18%
-----------------------------------------------------------------------
EBITDA          $20,836    $18,895   10%    $18,452      $18,225     1%
-----------------------------------------------------------------------
Net Earnings    $11,358     $9,872   15%     $9,043       $8,717     4%
-----------------------------------------------------------------------
EPS - Basic       $1.66      $1.42   17%      $1.32        $1.25     6%
-----------------------------------------------------------------------
EPS - Diluted     $1.64      $1.40   17%      $1.30        $1.23     6%
-----------------------------------------------------------------------


                  12 Months Ended
                  ---------------
--------------------------------------------
              Dec. 29,      Dec. 23,     %
                  2001          2000    chg
--------------------------------------------
Sales         $181,552      $158,979    14%
--------------------------------------------
EBITDA         $25,757       $25,832     0%
--------------------------------------------
Net Earnings   $12,404       $12,165     2%
--------------------------------------------
EPS - Basic      $1.81         $1.72     5%
--------------------------------------------
EPS- Diluted     $1.79         $1.70     5%
--------------------------------------------


Danier Leather Inc. (TSE: DL) today announced its consolidated financial
results for the 13 weeks ended December 29, 2001.

Q2 Highlights

* Revenues increase 24% and earnings per share rise 17% despite
  challenging retail environment

* Opened four new stores, including a flagship street-front store in
  Toronto's fashionable Bay & Bloor district

* Appointed Daniel Soper (formerly of Chapters/Indigo) to new position
  of Chief Operating Officer

* Achieved continued growth in marketing and momentum of the Danier
  brand

/T/

Revenue for the second quarter increased 24% to $86.2 million, 
while EBITDA, (earnings before interest expense, income tax, 
depreciation and amortization) a measure used by management to 
assess operating performance, rose 10% to $20.8 million from the 
second quarter last year.  Net earnings increased 15% to $11.4 
million, or $1.66 per share ($1.64 diluted), compared with net 
earnings of $9.9 million, or $1.42 per share ($1.40 diluted) for 
the 13-week period ended December 23, 2000.   

Due to the quarter ending on December 29, 2001 this year versus 
December 23, 2000 last year, Boxing Week sales were included in 
the second quarter whereas last year they were included in the 
third quarter. This resulted in a shift of approximately $10 
million of revenue from the third quarter to the second quarter. 
Comparable store sales for the second quarter rose 13%, while on a
comparable week basis (13 weeks ended December 29, 2001 compared 
to 13 weeks ended December 30, 2000), comparable store sales rose 
5%.  

Gross profit margin as a percentage of revenue decreased to 50.4% 
compared with 55.2% in the second quarter of 2001, the result of a
more aggressive promotional strategy to stimulate sales in a 
difficult retail environment. During the last six weeks of the 
second quarter, gross profit margin steadily improved and by the 
end of the quarter had returned to prior year levels. 

"Danier performed well considering the economic environment in 
retail apparel," said Jeffrey Wortsman, President and Chief 
Executive Officer. "While margins remained under pressure, we 
successfully adopted a more promotional strategy in the quarter to
drive store traffic and sales. As a result, we saw solid sales 
growth, especially in accessories, which grew 31% in the quarter 
and represented 12% of total second quarter sales."  

For the 26 weeks ended December 29, 2001, net earnings increased 
to $9.0 million, or $1.32 per share ($1.30 diluted), compared with
net earnings of $8.7 million, or $1.25 per share ($1.23 diluted) 
for the 26-week period ended December 23, 2000.  EBITDA for the 
first half of fiscal 2002 rose to $18.5 million or $2.70 per share
from $18.2 million or $2.62 per share. 

Comparable store sales in the first half of fiscal 2002 rose 8% 
(negative 1% on a comparable week basis). Year-to date, gross 
profit as a percentage of revenue decreased to 49.1% compared with
53.2% during the same period last year.   

During the quarter, Danier strengthened its management team with 
the appointment of Daniel Soper to the new position of Chief 
Operating Officer with overall responsibility for store 
operations, marketing, corporate sales, and logistics and 
distribution.  

Danier continued to leverage its brand and gain increased 
prominence in the fashion industry, with Danier product featured 
in recent issues of InStyle, Vogue, Elle, People and other fashion
and lifestyle magazines.  

Also during the quarter, Danier opened four new stores: two power 
centres in Montreal, one in Niagara Falls, and a new flagship 
store in the fashionable Bay & Bloor district of Toronto. Four 
mall stores were expanded in the quarter. In the third quarter, 
Danier expects to close one temporary store and one mall store in 
the same trade area as a recently opened power centre location. 
Danier also expects to open one additional mall store in fiscal 
2002, sometime in the fourth quarter.  

"While the economy and consumer spending remain difficult to 
predict over the near-term, we are excited about the future at 
Danier," added Mr. Wortsman. "Not only do we have high performance
expectations for our new flagship store, we believe it will serve 
as an international showcase for our unique creative fashions and 
the Danier brand. We also recently took advantage of our strong 
balance sheet and market position to acquire high-quality 
inventory at very attractive prices, which should help to fuel 
sales in the coming months. With a strengthened management team, 
continued focus and careful execution of our business strategy, we
are confident in our ability to deliver continued long-term growth
for our shareholders."    

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 90 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 involve risks, estimates and uncertainties. 
Therefore, actual results may differ materially and there is no 
certainty that the Company's plans will be achieved.  Examples of 
such risks and uncertainties, include, but are not limited to, 
those associated with weather, 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 the 
availability and sourcing of skins and finished goods in Europe, 
New Zealand and Asia, and other such risks as we may identify in 
this release or in other published documents.  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 4:00 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 AND RETAINED EARNINGS 
(thousands of dollars, except earnings per share 
 and number of shares outstanding)                                     
----------------------------------------------------------------------
----------------------------------------------------------------------
                                                                     
                                                                     
                        For the 13 Weeks Ended  For the 26 Weeks Ended
                        ----------------------  ----------------------
                          December    December    December    December 
                          29, 2001    23, 2000    29, 2001     23,2000
                        ----------  ----------  ----------  ----------
                        (unaudited) (unaudited) (unaudited) (unaudited)
                                                                 
Revenue                 $   86,218  $   69,573  $  107,644  $   91,510
Cost of sales               42,807      31,152      54,747      42,821
                        ----------  ----------  ----------  ----------
Gross profit                43,411      38,421      52,897      48,689
Selling, general and
 administrative expenses    23,897      20,720      37,089      32,776
                        ----------  ----------  ----------  ----------
Earnings before interest
 and income taxes           19,514      17,701      15,808      15,913
Interest expense               263         382         481         619
                        ----------  ----------  ----------  ----------
Earnings before income
 taxes                      19,251      17,319      15,327      15,294
Provision for income tax     7,893       7,447       6,284       6,577
                        ----------  ----------  ----------  ----------
Net earnings for the
 period                    $11,358      $9,872      $9,043      $8,717
                        ----------  ----------  ----------  ----------
                        ----------  ----------  ----------  ----------
                                                                     
Retained earnings,
 beginning of period        25,565      15,600      27,880      17,209
Future income tax
 adjustment                      -           -           -           -
Share purchases                  -        (953)          -      (1,407)
                        ----------  ----------  ----------  ----------
Retained earnings, end of
 period                 $   36,923  $   24,519  $   36,923  $   24,519
                        ----------  ----------  ----------  ----------
                        ----------  ----------  ----------  ----------
                                                                     
Earnings per Share:                                                  
  Basic                 $     1.66  $     1.42  $     1.32  $     1.25
  Diluted               $     1.64  $     1.40  $     1.30  $     1.23
                                                                     
Weighted Average Number of
 Shares Outstanding:                                                 
  Basic                  6,839,700   6,930,076   6,838,481   6,965,449
  Diluted                6,927,713   7,028,969   6,939,396   7,062,763
Number of Shares
 Outstanding             6,840,454   6,834,829   6,840,454   6,834,829


                                                                
                                                                
                                       For the 12 Months Ended  
                                  ------------------------------
                                    December            December 
                                    29, 2001            23, 2000
                                  ----------          ----------
                                  (unaudited)         (unaudited)
                                   (53 weeks)          (52 weeks)
Revenue                           $   181,552         $  158,979
Cost of sales                          94,744             76,886
                                  ----------          ----------
Gross profit                           86,808             82,093
Selling, general and
 administrative expenses               65,215             60,137
                                  ----------          ----------
Earnings before interest
 and income taxes                      21,593             21,956
Interest expense                          445                450
                                  ----------          ----------
Earnings before income
 taxes                                 21,148             21,506
Provision for income tax                8,744              9,341
                                  ----------          ----------
Net earnings for the
 period                           $   12,404          $   12,165
                                  ----------          ----------
                                  ----------          ----------
                                                                
Retained earnings,
 beginning of period                   24,519             14,917
Future income tax
 adjustment                                 -               (118)
Share purchases                             -             (2,445)
                                  ----------          ----------
Retained earnings, end of
 period                           $   36,923          $   24,519
                                  ----------          ----------
                                  ----------          ----------
                                                                
Earnings per Share:                                             
  Basic                           $      1.81         $     1.72
  Diluted                         $      1.79         $     1.70
                                                                
Weighted Average Number of
 Shares Outstanding:                                            
  Basic                             6,836,875          7,073,669
  Diluted                           6,932,096          7,137,306
Number of Shares
 Outstanding                        6,840,454          6,834,829


DANIER LEATHER INC.                                          
CONSOLIDATED BALANCE SHEETS                                    
(thousands of dollars)                                          
                                                                    
                               December      December           June 
                               29, 2001      23, 2000       30, 2001
                             ----------    ----------     ----------
                             (unaudited)   (unaudited)              
ASSETS                                                              
Current Assets                                                      
  Cash                       $   10,223    $    1,394     $    1,663
  Accounts receivable             4,633         3,545            664
  Inventories                    38,627        44,410         39,227
  Prepaid expenses                  313            37            459
Current portion of future
 income tax asset                   887         1,163            932
                             ----------    ----------     ----------
                                 54,683        50,549         42,945
                                                                    
Other Assets                                                        
  Capital assets                 29,172        22,759         25,151
  Goodwill                          342           348            342
                             ----------    ----------     ----------
                             $   84,197    $   73,656     $   68,438
                             ----------    ----------     ----------
                             ----------    ----------     ----------
                                                                    
LIABILITIES                                                         
Current Liabilities                                                 
  Bank overdraft             $        -    $    2,969     $    3,486
Accounts payable and
 accrued liabilities             20,153        18,716         11,945
  Income taxes payable            3,181         3,222          1,184
Current portion of
 long-term debt                       -           203              -
                             ----------    ----------     ----------
                                 23,334        25,110         16,615
Long-term debt                        -           252              -
Future income tax
 liability                          495           363            531
                             ----------    ----------     ----------
                                 23,829        25,725         17,146
                             ----------    ----------     ----------
                                                                    
SHAREHOLDERS' EQUITY                                                
  Share capital                  23,445        23,412         23,412
  Retained earnings              36,923        24,519         27,880
                             ----------    ----------     ----------
                                 60,368        47,931         51,292
                             ----------    ----------     ----------
                             $   84,197    $   73,656     $   68,438
                             ----------    ----------     ----------
                             ----------    ----------     ----------


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

                        For the 13 Weeks Ended   For the 26 Weeks Ended
                        ----------------------   ----------------------
                         December    December     December     December
                         29, 2001    23, 2000     29, 2001     23, 2000
                         --------    --------     --------     --------
                        (unaudited) (unaudited)  (unaudited) (unaudited)

Operating activities
 Net earnings for the
  period                 $  11,358   $   9,872    $   9,043   $  8,717
 Items not affecting
  cash:
 Amortization                1,322       1,194        2,644      2,312
 Future income taxes            51           -            9          -
                         ----------  ----------   ----------  ---------
                            12,731      11,066       11,696     11,029
Change in non-cash
 working capital items      29,546      15,564        6,982     (6,430)
                         ----------  ----------   ----------  ---------

Cash flows from
 operating activities       42,277      26,630       18,678      4,599
                         ----------  ----------   ----------  ---------

Financing activities
 Issuance of subordinate
  voting shares                  8           -           33          - 
 Subordinate voting
  shares purchased for
  cancellation                   -      (1,503)           -     (2,231)
 Obligations under
  capital leases                 -        (220)           -       (285)
                         ----------  ----------   ----------  ---------
Cash flows from
 financing activities            8      (1,723)           33    (2,516)
                         ----------  ----------   ----------  ---------

Investing activities
 Acquisition of
  capital assets            (3,933)     (2,564)       (6,665)   (4,433)
                         ----------  ----------   ----------  ---------
Cash flows from
 investing activities       (3,933)     (2,564)       (6,665)   (4,433)
                         ----------  ----------   ----------  ---------

Increase/(decrease)         38,352      22,343        12,046    (2,350)
 in cash

Cash and bank overdraft,
 beginning of period       (28,129)    (23,918)       (1,823)      775
                         ----------  ----------   ----------  ---------

Cash and bank overdraft,
 end of period           $  10,223   $  (1,575)    $  10,223  $ (1,575)
                         ----------  ----------   ----------  ---------
                         ----------  ----------   ----------  ---------

Comprised of:
 Cash                       10,223       1,394        10,223     1,394
 Bank overdraft                  -      (2,969)            -    (2,969)
                         ----------  ----------   ----------  ---------
                           $10,223     ($1,575)      $10,223   ($1,575)
                         ----------  ----------   ----------  ---------
                         ----------  ----------   ----------  ---------

Supplementary cash flow
 information:
 Interest paid                 318         501           439       615
 Income taxes paid           1,470       2,175         4,281     6,606

/T/

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 for the 13  week and 26 week periods ended 
December 29, 2001 was an increase of $3 and $6, respectively. 

(c) Earnings Per Share: 

Earnings 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 and 26 week periods 
ended December 23, 2000 were restated to reflect the treasury 
stock method.  The effect of the restatement of fully diluted 
earnings per share for the 13 week and 26 week periods ended 
December 23, 2000 was an increase of $0.08 per share and $0.06 per
share, respectively. 

(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): 


/T/

                                     December 29, 2001   June 30, 2001
                                     -----------------   --------------
Raw materials & work-in-process        $    8,378          $    9,077
Finished goods                             30,249              30,150
                                     -----------------   --------------
                                       $   38,627          $   39,227
                                     -----------------   --------------
                                     -----------------   --------------


4. CAPITAL ASSETS (thousands of dollars):

                    December 29, 2001              June 30, 2001
             ----------------------------- ----------------------------
                Cost Accumulated  Net Book   Cost Accumulated  Net Book
                    Amortization     Value       Amortization     Value
             ----------------------------- ----------------------------
Land         $ 1,000     $     -   $ 1,000 $ 1,000    $     -   $ 1,000
Building       5,919         544     5,375   5,897        340     5,557
Furniture
 and
 equipment    10,312       4,860     5,452   9,043      4,423     4,620
Leasehold
 improvements 20,747       8,114    12,633  17,110      6,631    10,479
Computer
 hardware
 and
 software      7,982       3,270     4,712   6,245      2,750     3,495
             ----------------------------- ----------------------------
             $45,960     $16,788   $29,172 $39,295    $14,144   $25,151
             ----------------------------- ----------------------------
             ----------------------------- ----------------------------


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

                                 December 29, 2001   June 30, 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)             *               *
5,616,125 Subordinate Voting
 Shares (June 30, 2000 - 5,611,000)         23,445          23,412
                                 -----------------  --------------
                                       $    23,445     $    23,412
                                 -----------------  --------------
                                 -----------------  --------------
* Nominal                                                           


6. INCOME TAXES

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

                                    Dec 29, 2001         Dec 23, 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%
                                    ------------         ------------
                                    ------------         ------------


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

                     13 weeks ended               26 weeks ended
               --------------------------   ---------------------------
               Dec 29, 2001  Dec 23, 2000   Dec 29, 2001  Dec 23, 2000
               --------------------------   ---------------------------
Accounts
 receivable        ($4,027)      ($3,024)       ($3,969)      ($2,783)
Inventories         14,631         5,558            600        (9,286)
Prepaid expenses        77            88            146           160
Accounts payable
 and accrued
 liabilities        12,494         7,670          8,208         5,508
Income taxes
 payable             6,371         5,272          1,997           (29)
               --------------------------   ---------------------------
Outstanding at
 end of year       $29,546       $15,564         $6,982       ($6,430)
               --------------------------   ---------------------------

/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 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. 


/T/

(b) Operating Leases

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

2003                                     $  9,115
2004                                     $  8,378
2005                                     $  7,694
2006                                     $  6,960
2007                                     $  6,438
Thereafter                               $ 16,816

/T/

(c) Letters of Credit  

The Company had outstanding letters of credit in the amount of 
$6,448 (June 30, 2001 - $11,230; December 23, 2000 - $6,539) 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, Investor Relations
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