NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS 

FOR:  DANIER LEATHER INC.

TSE SYMBOL:  DL

FEBRUARY 1, 1999

Danier's Six-Month Earnings Up 33 Percent On 27 Percent
Sales Increase

TORONTO, ONTARIO-- 


/T/

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

-----------------------------------------------------------------
            For the 13 Weeks Ended     For the 26 Weeks Ended
-----------------------------------------------------------------
      Dec 26, 98 Dec 27, 97 percent Dec 26, 98 Dec 27, 97 percent
                             chg                           chg
-----------------------------------------------------------------
Sales     $44,046   $35,358    25      $58,336    $45,763  27
                            percent                       percent
-----------------------------------------------------------------
Net Income $5,547    $4,498    23       $4,743     $3,575  33
                            percent                       percent
-----------------------------------------------------------------
EPS - Basic $0.76     n/a(x)             $0.65      n/a(x)
-----------------------------------------------------------------
EPS
 - Fully
   Diluted  $0.72     n/a(x)             $0.62      n/a(x)
-----------------------------------------------------------------
(x) Danier completed its IPO on May 20, 1998 at which time
6,040,000 subordinate voting shares were issued.  Accordingly,
earnings per share for the prior period  are not comparable.
-----------------------------------------------------------------

/T/

Danier Leather Inc. today announced strong sales and net earnings 
gains for the fiscal 1999 second-quarter and six-month periods 
ended December 26, 1998. 

Revenues for the leather and suede clothing retailer rose 24.6 
percent to $44.0 million in the fiscal 1999 second quarter 
compared with $35.4 million in the 1998 period.  Net earnings 
increased 23.3 percent to $5.5 million ($0.76 basic earnings per 
share and $0.72 per share on a fully diluted basis) from $4.5 
million ($0.62 earnings per share adjusted to reflect the number 
of shares outstanding following Danier's initial public offering 
on May 20, 1998) a year earlier.  Earnings before interest, taxes,
depreciation, and amortization (EBITDA) rose 17.7 percent to $10.2
million from $8.7 million in the fiscal 1998 second quarter. 

On a comparable-stores basis, second-quarter revenues rose by 5.4 
percent, led by a particularly strong performance in its power 
centre outlets, which were up by 11.9 percent. 

"The increase in comp-stores sales is particularly notable 
considering it followed an exceptionally strong 18.9 percent 
increase in the quarter a year ago.  Further, we achieved this 
without the need of any unusual pricing promotions and realized an
increase in our gross margin.  The improved gross margin is 
particularly attributable to effective materials purchasing, which
more than offset the strength of the U.S. dollar. Selling, general
and administrative expenses included pre-opening costs for four 
power centre outlets and five shopping mall stores that were 
opened during the quarter," said Jeffrey Wortsman, President and 
Chief Executive Officer. 

"The continuing sales growth reflects the growing strength and 
consumer recognition of the Danier brand and our increasingly 
effective marketing and advertising strategies.  It also reflects 
the success of our growth strategy to focus on power centre 
outlets.  Power centre outlets represent a rapidly growing 
proportion of our total revenues.  In the first half of this 
fiscal year, power centre outlets generated 40 percent of total 
revenues, compared with a little more than 31 percent in the first
half of 1998," Mr. Wortsman said. 

During the second-quarter, Danier opened power centre stores in 
each of Calgary and Edmonton, Alberta; and Thunder Bay and 
Ancaster, Ontario.  It opened five mall stores in each of 
Burlington and London, Ontario; Kelowna, B.C.; Quebec City, 
Quebec; and Long Island, New York.  "The initial performance of 
our new locations has been encouraging.  We were very pleased with
the performance of our U.S. store, which opened on November 25th. 
For the month of December, its sales performed on par with the 
very best of our mall stores in Canada and gross margins were 
significantly higher than Canadian mall stores," Mr. Wortsman 
said. 

At the end of December, the company also purchased a building in 
Toronto to serve as a new, larger head office, distribution 
centre, and factory outlet, and expects to occupy it in late 
Spring. 

For the first half of fiscal 1999, Danier's sales were $58.4 
million, up 27.5 percent from $45.8 million in the 1998 period.  
Comparable-stores' sales rose by 7.2 percent in the 1999 first 
half on top of a 12.5 percent comparable-store sales increase in 
the 1998 first half.  Net earnings rose 32.7 percent to $4.7 
million ($0.65 basic earnings per share and $0.62 per share on a 
fully diluted basis) from $3.6 million ($0.49 earnings per share 
adjusted to reflect the IPO).  EBITDA rose 17.9 percent to $9.4 
million from $8.0 million in the first half of fiscal 1998. 

"The solid results through the first six months of this year are 
in line with our expectations and we continue to expect to achieve
good growth in revenues and earnings for the full year.  Our 
positive momentum continued with exceptionally strong sales 
through the post-Christmas selling period into January.  We expect
to add three more power centre locations during the balance of the
fiscal year, while closing two mall locations.  One of these is a 
temporary mall site in Edmonton, Alberta that has been replaced by
a power centre outlet," Mr. Wortsman said. 

During the first half of fiscal 1999, the company opened 11 new 
stores, including six power centre outlets and five mall stores 
including its first mall store in the United States. 

Danier Leather Inc. is a leading integrated designer, 
manufacturer, and retailer of high-quality leather and suede 
clothing.  The company's merchandise is marketed exclusively under
the well-known Danier brand name and is available only at its 65 
shopping mall, street front, and power centre stores.  Danier's 
web site is at www.danier.com. 

This news release may include comments that do not refer strictly 
to historical results or actions and may be deemed to be 
forward-looking statements.  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 from operations 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. 




/T/

DANIER LEATHER INC.

CONSOLIDATED STATEMENTS OF EARNINGS
RETAINED EARNINGS (DEFICIT)
(thousands of dollars, except earnings per share and number of
 shares outstanding)                                    

                                                      Trailing 52
        For the 13 Weeks Ended For the 26 Weeks Ended Weeks Ended
        ---------------------- ---------------------- -----------
           December   December   December    December    December
           26, 1998   27, 1997   26, 1998    27, 1997    26, 1998
        ---------------------- ---------------------- -----------
          (unaudited)(unaudited)(unaudited)(unaudited)(unaudited)

Revenue     $44,046    $35,358    $58,336     $45,763    $101,236
Cost of
 sales       20,668     17,184     28,887      22,760      51,858
        ---------------------- ---------------------- -----------
Gross profit 23,378     18,174     29,449      23,003      49,378
        ---------------------- ---------------------- -----------
Selling,
 general and
 administrative
 expenses    13,756     10,019     21,231      16,052      39,237
Other expenses    -          -          -          27           -
        ---------------------- ---------------------- -----------
Earnings before
 interest and
 income taxes 9,622      8,155      8,218       6,924      10,141
Interest         22        401         11         761         484
        ---------------------- ---------------------- -----------
Earnings before
 income taxes 9,600      7,754      8,207       6,163       9,657
Provision for
 income tax   4,053      3,256      3,464       2,588       4,073
        ---------------------- ---------------------- -----------
Net earnings for
 the period  $5,547     $4,498     $4,743      $3,575      $5,584
        ---------------------- ---------------------- -----------
        ---------------------- ---------------------- -----------
Retained earnings
 (deficit),
 beginning
 of period      737     (1,857)     1,541        (934)      2,641
IPO/share capital
 reorganization
 charges (net)    -          -          -           -      (1,941)
        ---------------------- ---------------------- -----------
Retained earnings,
 end of
 period       $6,284    $2,641     $6,284      $2,641      $6,284
        ---------------------- ---------------------- -----------
        ---------------------- ---------------------- -----------

Earnings per Share:
  Basic        $0.76       n/a      $0.65         n/a         n/a
  Fully
   Diluted     $0.72       n/a      $0.62         n/a         n/a
  Adjusted     $0.76   $0.62(x)     $0.65     $0.49(x)    $0.77(x)

Number of Shares Outstanding:
  Basic    7,264,329        n/a 7,264,329         n/a         n/a
  Fully
   Diluted 7,791,829        n/a 7,787,608         n/a         n/a
  Adjusted 7,264,329  7,264,329 7,264,329   7,264,329   7,264,329

(x) Danier completed its IPO on May 20, 1998 at which time
6,040,000 subordinate shares were issued.
Adjusted earnings per share is net income divided by 7,264,329
shares which is the weighted average number of shares outstanding
during the 13 weeks and 26 weeks ended December 26, 1998.


DANIER LEATHER INC.

CONSOLIDATED BALANCE SHEETS
(thousands of dollars)

                                 December 26,     December 27,
                                     1998             1997
                                 ------------     ------------
                                  (unaudited)      (unaudited)

ASSETS
Current Assets
     Cash and equivalents           $3,279            $1,318
     Accounts receivable             3,638             3,861
     Inventories                    28,149            17,967
     Prepaid expenses                  184               188
                                 ------------     ------------
                                    35,250            23,334

Other Assets
     Capital assets                  8,470             5,387
     Other                             376             1,466
     Deferred income taxes           2,247                 -
                                 ------------     ------------
                                   $46,343           $30,187
                                 ------------     ------------
                                 ------------     ------------

LIABILITIES
Current Liabilities
     Bank overdraft                $     -           $     -
     Accounts payable and
      accrued liabilities           11,854            10,368
     Income taxes payable            1,898             2,019
     Current portion of long-term debt 232             3,448
                                 ------------     ------------
                                    13,984            15,835
                                 ------------     ------------

Long-term debt                         871            11,711
                                 ------------     ------------
                                    14,855            27,546
                                 ------------     ------------

SHAREHOLDERS' EQUITY (DEFICIENCY)
     Share capital                  25,204                 -
     Retained earnings (deficit)     6,284             2,641
                                 ------------     ------------
                                    31,488             2,641
                                 ------------     ------------
                                   $46,343           $30,187
                                 ------------     ------------
                                 ------------     ------------



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
                    26, 1998    27, 1997    26, 1998    27, 1997
                  ----------------------  ----------------------

                  (unaudited) (unaudited) (unaudited) (unaudited)

Cash flows from
 operating activities
Net earnings
 for the period       $5,547      $4,498      $4,743      $3,575
Items not affecting cash:
  Amortization           613         540       1,219       1,080
                  ----------------------  ----------------------
                       6,160       5,038       5,962       4,655

Change in operating
 assets and liabilities:
  Accounts receivable (3,253)     (3,253)     (3,047)     (3,643)
  Inventories         (6,992)     (2,085)     (8,365)     (5,848)
  Prepaid expenses       (49)         76           1         177
  Accounts payable and
   accrued liabilities 5,770       5,081       5,987       7,231
  Income taxes payable 3,257       2,121         352       1,028
  Accrued interest on
   subordinated loan       -         244           -         488
                  ----------------------  ----------------------
Net cash provided by
 operating activities  4,893       7,222         890       4,088
                  ----------------------  ----------------------

Cash Flows from
 Investing Activities:
  Acquisition of
   capital assets     (2,752)       (587)     (4,253)     (1,758)
                  ----------------------  ----------------------
Net cash used for
 investing activities (2,752)       (587)     (4,253)     (1,758)
                  ----------------------  ----------------------

Cash Flows from
 Financing Activities:
  Obligations under
   capital leases        (56)        372        (111)        372
  Deferred charges         -        (542)          -        (542)
                  ----------------------  ----------------------
Net cash used for
 financing activities    (56)       (170)       (111)       (170)
                  ----------------------  ----------------------

Net increase (decrease)
 in cash                2,085      6,465      (3,474)      2,160

Cash (bank overdraft),
 beginning of period    1,194     (5,147)      6,753        (842)
                  ----------------------  ----------------------
Cash, end of period    $3,279     $1,318      $3,279      $1,318
                  ----------------------  ----------------------
                  ----------------------  ----------------------

Comprised of:
  Cash                  3,279      1,318       3,279       1,318
  Bank overdraft            -          -           -           -
                  ----------------------  ----------------------
                       $3,279     $1,318      $3,279      $1,318
                  ----------------------  ----------------------
                  ----------------------  ----------------------

/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)
E-mail: leather@danier.com

or

Danier Leather Inc.
Bryan Tatoff, CA
Chief Financial Officer
(416) 762-8175 ext. 328
(416) 762-7408 (FAX)
E-mail: bryan@danier.com