NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  DANIER LEATHER INC.

TSX SYMBOL:  DL.SV

MARCH 28, 2005 - 17:11 ET

Danier Leather To Close Its 3 U.S. Stores

TORONTO, ONTARIO--(CCNMatthews - March 28, 2005) - Danier Leather Inc. 
(TSX:DL.SV) today announced that it is closing its three retail stores 
in the United States and will focus its resources on its Canadian 
operations.

"We would rather focus our attention on generating the superior returns 
from our Canadian operations that we have achieved in the past," said 
Jeffrey Wortsman, President and Chief Executive Officer of Danier 
Leather Inc.

"This decision reflects the prudent approach we've followed in exploring 
opportunities in the U.S. marketplace and in pursuing value for our 
shareholders. Our aim continues to be to create shareholder value 
through the other elements of our strategy in Canada and elsewhere. 
These include: enhancing the Danier brand; improved merchandise 
strategies; opening, renovating and expanding our stores in Canada; 
building our fast-growing accessories and corporate sales businesses; 
and exploring emerging international opportunities. We'll also consider 
future opportunities in the United States if we believe they can advance 
the interests of our business and our shareholders," Mr. Wortsman added.

Two of the stores to be closed are located on Long Island, New York and 
one store is located in Paramus, New Jersey.

During the third quarter a non-cash charge of approximately CDN $1.1 
million will be recorded for the write-off of fixed assets and a cash 
charge of approximately CDN $0.4 million will be recorded for lease and 
employee termination costs. Annual savings from the closure of the U.S. 
operations are expected to be approximately CDN $1.0 million.

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

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, 
weather, estimates associated with the closure of the U.S. operation, 
estimates of damages, costs and interest associated with the class 
action lawsuit, continued growth of the leather apparel industry, and 
competition and other associated risks with Danier's business. For an 
expanded discussion of risks and uncertainties, please see the documents 
filed by Danier Leather Inc. with the Ontario Securities Commission. 
Danier disclaims any responsibility to update or revise such 
forward-looking statements whether as a result of new information, 
future events or otherwise.

-30-

Investor Relations 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) 762-7408 (FAX)
Email: bryan@danier.com