NEWS RELEASE TRANSMITTED BY CCN NEWSWIRE - A SERVICE OF ITG

FOR:  DANIER LEATHER INC.

TSE SYMBOL:  DL

APRIL 18, 2001 - 10:42 EDT

Danier Leather Reports Third Quarter Results Sales rise
13%, Earnings per Share up 11%

TORONTO, ONTARIO-- 


/T/

Danier Leather Reports Third Quarter Results
Sales rise 13%, Earnings per Share up 11%

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

                                                                     Trailing
                                                                     52 Weeks
          For the 13 Weeks Ended       For the 39 Weeks Ended         Ended
          ----------------------       ----------------------        --------
                                   %                            %
          Mar 24, 01  Mar 25, 00  chg  Mar 24, 01  Mar 25, 00  chg  Mar 24, 01
          ----------  ----------  ---  ----------  ----------  ---  ----------

Sales
 ($000)      $48,501     $42,991  13%    $140,011    $118,533  18%    $164,489
EBITDA
 ($000)       $7,407      $6,937   7%     $25,632     $21,886  17%     $26,302
Net Earnings
 ($000)       $3,673      $3,503   5%     $12,390     $10,765  15%     $12,335
EPS - Basic    $0.54       $0.48  11%       $1.79       $1.48  21%       $1.77
EPS - Fully
 Diluted       $0.50       $0.46   9%       $1.67       $1.40  19%       $1.66

Danier Leather Inc. (TSE: DL) today announced its consolidated financial results 
for the third quarter ended March 24, 2001.

Third Quarter Ended March 24, 2001

* Sales increased 13% to $48.5 million from $43.0 million last year.
* Comparable store sales increased 5%.
* Net income increased by 5% to $3.7 million, or $0.54 per basic share ($0.50 
  per share fully diluted) from $3.5 million, or $0.48 per basic share ($0.46 
  per share fully diluted). Basic and fully diluted earnings per share 
  increased by 11% and 9%, respectively, due to higher earnings and shares 
  repurchased under the normal course issuer bid.

Year-to-Date For The Thirty-Nine Weeks Ended March 24, 2001

* Sales increased by 18% to $140.0 million from $118.5 million last year.
* Comparable stores sales increased 11%.
* Net income increased by 15% to $12.4 million, or $1.79 per basic share ($1.67 
  per share fully diluted) from $10.8 million, or $1.48 per basic share ($1.40 
  per share fully diluted). Basic and fully diluted earnings per share 
  increased by 21% and 19%, respectively, due to higher earnings and shares 
  repurchased under the normal course issuer bid.

/T/

During the third quarter, results were affected by additional 
merchandise markdowns that were taken to respond to an uncertain 
economic environment. As a result, gross margin declined to 46.7% 
in the third quarter compared with 48.8% last year. However, 
selling, general and administrative expenses as a percent of sales
decreased to 33.5% in the third quarter compared with 34.7% last 
year.  This helped to reduce the impact of lower gross margins. 
Danier's trailing twelve-month 16.0% ratio of EBITDA to sales 
continues to be the highest among Canadian publicly traded 
specialty apparel retailers. 

"As a debt-free, vertically integrated and multi-channel retailer,
Danier is well-positioned to continue to meet its objectives and 
implement its growth strategy," said Jeffrey Wortsman, President 
and Chief Executive Officer. "We are leveraging our successful 
formula of high quality, fashionable leather clothing at 
reasonable prices to complementary markets such as our initial 
U.S. stores and our rapidly expanding accessories business," Mr. 
Wortsman added. 

The Danier brand is gaining increased prominence and recognition 
among U.S. fashion magazine editors with Danier product featured 
in recent issues of Cosmopolitan, Mode Magazine, and Glamour. 
Danier is also gaining recognition among influential celebrities. 
During the recent Screen Actors Guild Awards, Danier products were
selected to be given to presenters and award winners. Tom Hanks, 
Warren Beatty, Chris O'Donnell and other male presenters and award
winners received leather blazers and tote bags while female 
celebrities such as Sarah Jessica Parker, Kate Hudson, Kim 
Cattrall and others received tote bags. 


/T/

Fiscal 2001 Highlights 

During fiscal 2001, Danier achieved a number of strategic milestones, including:

* Opening three new Power Centre locations and four new Shopping Mall stores, 
  including a second U.S. mall store on Long Island, New York in Roosevelt Field 
  Mall;
* Increasing accessories sales by 56% to 11% of total Company sales;
* Raising Danier brand name market visibility through an extensive outdoor 
  advertising and PR campaign;
* Leveraging multiple channels of retail including e-commerce, physical stores 
  and customer database.

/T/

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 82 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 1-888-343-1303 (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
                                          ----------------------
                                          March            March        %
                                         24, 2001         25, 2000     chg
                                       ----------       ------------------
                                       (unaudited)      (unaudited)
Revenue                                $   48,501       $   42,991     13%
Cost of sales                              25,864           21,996
                                       ----------       ----------
Gross profit                               22,637           20,995      8%
Selling, general and
 administrative expenses                   16,224           14,906      9%
                                       ----------       ----------
Earnings before interest and
 income taxes                               6,413            6,089      5%
Interest expense (income)                     (34)            (110)
                                       ----------       ----------
Earnings before income taxes                6,447            6,199      4%
Provision for income tax                    2,774            2,696      3%
                                       ----------       ----------
Net earnings for the period            $    3,673       $    3,503      5%
                                       ----------       ----------
                                       ----------       ----------
Retained earnings, beginning
 of period                                 24,519           14,917
Future income tax adjustment                    -                -
Share purchases                                 -             (213)
                                       ----------       ----------
Retained earnings, end of period       $   28,192       $   18,207
                                       ----------       ----------
                                       ----------       ----------
Earnings per Share:
  Basic                                     $0.54            $0.48     11%
  Fully Diluted                             $0.50            $0.46      9%

Weighted Average Number of
 Shares Outstanding:
  Basic                                 6,835,329        7,224,948
  Fully Diluted                         7,396,329        7,733,536
Number of Shares Outstanding            6,835,329        7,198,229


                                          For the 39 Weeks Ended
                                          ----------------------
                                          March            March        %
                                         24, 2001         25, 2000     chg
                                       ----------       ------------------
                                       (unaudited)      (unaudited)
Revenue                                $  140,011       $  118,533     18%
Cost of sales                              68,685           57,796
                                       ----------       ----------
Gross profit                               71,326           60,737     17%
Selling, general and
 administrative expenses                   49,000           41,596     18%
                                       ----------       ----------
Earnings before interest and
 income taxes                              22,326           19,141     17%
Interest expense (income)                     585               92
                                       ----------       ----------
Earnings before income taxes               21,741           19,049     14%
Provision for income tax                    9,351            8,284     13%
                                       ----------       ----------
Net earnings for the period            $   12,390       $   10,765     15%
                                       ----------       ----------
                                       ----------       ----------
Retained earnings, beginning
 of period                                 17,209            7,655
Future income tax adjustment                    -                -
Share purchases                            (1,407)            (213)
                                       ----------       ----------
Retained earnings, end of period       $   28,192       $   18,207
                                       ----------       ----------
                                       ----------       ----------
Earnings per Share:
  Basic                                     $1.79            $1.48     21%
  Fully Diluted                             $1.67            $1.40     19%


Weighted Average Number of
 Shares Outstanding:
  Basic                                 6,922,149        7,251,202
  Fully Diluted                         7,470,710        7,768,775
Number of Shares Outstanding            6,835,329        7,198,229


                                          Trailing 52 Weeks Ended
                                          -----------------------
                                          March            March        %
                                         24, 2001         25, 2000     chg
                                       ----------       ------------------
                                       (unaudited)      (unaudited)
Revenue                                $  164,489       $  136,633     20%
Cost of sales                              80,754           67,450
                                       ----------       ----------
Gross profit                               83,735           69,183     21%
Selling, general and
 administrative expenses                   61,455           50,487     22%
                                       ----------       ----------
Earnings before interest and
 income taxes                              22,280           18,696     19%
Interest expense (income)                     526               56
                                       ----------       ----------
Earnings before income taxes               21,754           18,640     17%
Provision for income tax                    9,419            8,264     14%
                                       ----------       ----------
Net earnings for the period            $   12,335       $   10,376     19%
                                       ----------       ----------
                                       ----------       ----------
Retained earnings, beginning
 of period                                 18,207            8,044
Future income tax adjustment                 (118)               -
Share purchases                            (2,232)            (213)
                                       ----------       ----------
Retained earnings, end of period       $   28,192       $   18,207
                                       ----------       ----------
                                       ----------       ----------
Earnings per Share:
  Basic                                     $1.77            $1.43     24%
  Fully Diluted                             $1.66            $1.36     22%


Weighted Average Number of
 Shares Outstanding:
  Basic                                 6,976,327        7,254,484
  Fully Diluted                         7,515,620        7,769,539
Number of Shares Outstanding            6,835,329        7,198,229


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

                                         March 24,    June 24,    March 25,
                                           2001         2000        2000
                                        ---------    ---------    ---------
                                       (unaudited)               (unaudited)
ASSETS
Current Assets
 Cash and short-term deposits          $    3,266   $      775   $   10,135
 Accounts receivable                        1,166          762        1,071
 Inventories                               39,775       35,124       28,802
 Prepaid expenses                              83          197          159
 Current portion of future
  income tax asset                          1,176        1,163          918
                                        ---------    ---------    ---------
                                           45,466       38,021       41,085

Other Assets
 Capital assets                            23,162       20,631       20,077
 Goodwill                                     345          355          359
 Future income tax asset                        -            -          660
                                        ---------    ---------    ---------
                                       $   68,973   $   59,007   $   62,181
                                        ---------    ---------    ---------
                                        ---------    ---------    ---------
LIABILITIES
Current Liabilities
 Accounts payable and
  accrued liabilities                  $   13,160   $   13,208   $   13,211
 Income taxes payable                       3,717        3,251        4,995
 Current portion of long-term debt              -          270          265
                                        ---------    ---------    ---------
                                           16,877       16,729       18,471
                                        ---------    ---------    ---------
Long-term debt                                  -          470          518
Future income tax liability                   492          363            -
                                        ---------    ---------    ---------
                                           17,369       17,562       18,989
                                        ---------    ---------    ---------
SHAREHOLDERS' EQUITY
 Share capital                             23,412       24,236       24,985
 Retained earnings                         28,192       17,209       18,207
                                        ---------    ---------    ---------
                                           51,604       41,445       43,192
                                        ---------    ---------    ---------
                                       $   68,973   $   59,007   $   62,181
                                        ---------    ---------    ---------
                                        ---------    ---------    ---------


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

                           For the 13 Weeks Ended      For the 39 Weeks Ended
                          -------------------------   -------------------------
                            March          March        March          March
                           24, 2001       25, 2000     24, 2001       25, 2000
                          ---------      ---------    ---------      ---------
                         (unaudited)    (unaudited)  (unaudited)    (unaudited)
Operating activities       
 Net earnings for
  the period             $    3,673     $    3,503   $   12,390     $   10,765
 Items not affecting cash:
 Amortization                   994            848        3,306          2,745
 Future income taxes            116              -          116              -
                          ---------      ---------    ---------      ---------
                              4,783          4,351       15,812         13,510
Change in non-cash
 working capital items        1,907          1,177       (4,523)         3,635
                          ---------      ---------    ---------      ---------
Cash flows from
 operating activities         6,690          5,528       11,289         17,145
                          ---------      ---------    ---------      ---------
Financing activities
 Subordinate voting
  shares purchased                -           (432)      (2,231)          (432)
 Obligations under
  capital leases               (455)           (83)        (740)          (204)
                          ---------      ---------    ---------      ---------
Cash flows from
 financing activities          (455)          (515)      (2,971)          (636)
                          ---------      ---------    ---------      ---------
Investing activities
 Acquisition of
  capital assets             (1,394)          (800)      (5,827)        (8,002)
                          ---------      ---------    ---------      ---------
Cash flows from
 investing activities        (1,394)          (800)      (5,827)        (8,002)
                          ---------      ---------    ---------      ---------
Increase in cash              4,841          4,213        2,491          8,507
Cash and bank overdraft,
 beginning of period         (1,575)         5,922          775          1,628
                          ---------      ---------    ---------      ---------
Cash, end of period      $    3,266     $   10,135   $    3,266     $   10,135
                          ---------      ---------    ---------      ---------
                          ---------      ---------    ---------      ---------
Supplementary cash flow
 information:
  Interest paid                  15             25          630            165
  Income taxes paid           2,174          1,166        8,780          4,748

/T/

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

or

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