PROFILE OF BISCAYNE APPAREL, INC. ANDY JOHNS FASHIONS _________________________________________________________________ Andy Johns Fashions, a designer and distributor of active outerwear for the women's and children's markets, sells its products primarily to major department and specialty stores, and to mass merchandisers. As a manufacturer of high-quality women's and children's outerwear that emphasizes function and design, Andy Johns offers its customers superior value in an extensive variety of style and fabrics. Andy Johns sources its production overseas, principally in Asia. This permits more value-oriented pricing while sustaining profit margins. The overseas production capability, supplemented by its relationships with domestic contract manufacturers, allows Andy Johns added flexibility in meeting the needs of its customers. Initially successful in the women's marketplace, the Company established Andy Johns Kids in mid-1987. Andy Johns Kids sells outerwear, targeting the 2 to 14 age range and includes year-round fashions. Andy Johns enjoyed commendable sell-through at retail, and our customers have expressed positive reactions to the Fall 1995 line. Net Sales - Andy Johns (In Millions) $33.5 $36.2 $31.6 $35.8 $36.4 1990 1991 1992 1993 1994 MACKINTOSH OF NEW ENGLAND _________________________________________________________________ Mackintosh of New England, a well-known manufacturer of fine women's wool coats, produces the majority of its line domestically and markets its products under the Mackintosh of New England and All Outdoors brand labels. Long known for its consistent quality and reliability, Mackintosh adds a well-known, Made-In-America alternative, for the discerning, value conscious consumer. In 1991 Biscayne also established a subsidiary of Mackintosh in the United Kingdom to distribute the Mackintosh product line in Europe. During 1994 Mackintosh introduced a new imported active outerwear line, which was the primary contributor to the 23% sales increase realized in 1994. Mackintosh products had favorable retail sell-through, despite the warm weather experienced in 1994. Pricing pressure from imported wool products has prompted Mackintosh to seek offshore production for a portion of its wool line in 1995. For 1995 Mackintosh will combine the classic stylings desired by its long-term clientele with tasteful and stylish new approaches for a broader appeal. Net Sales - Mackintosh (In Millions) $3.1 $10.7 $10.5 $12.9 1991 1992 1993 1994 M&L INTERNATIONAL _________________________________________________________________ M&L International, which was founded in 1919, is a Chicago- based designer, manufacturer, and marketer of infants', toddlers' and children's outerwear, sportswear, and swimwear with annual sales of approximately $50 million. M&L is one of the largest manufacturers of children's outerwear. M&L markets its outerwear products under the Weather Tamerþ brand name, which it owns, and the OshKosh B'Goshþ and Bon Jourþ brand names, which it licenses. M&L's sportswear and swimwear products are marketed under its Eclipse brand name. M&L has showrooms in Chicago, New York, Atlanta, and Los Angeles and has manufacturing and sourcing operations in the Philippines, Hong Kong, Bangladesh, and Sri Lanka. M&L's extensive overseas sourcing, production and quality assurance operations allow them to offer a fashionable superior quality product at competitive prices, while sustaining attractive profit margins. M&L will continue to seek marketing and merchandising alternatives to enhance its already successful brands and business in the future. VARON _________________________________________________________________ Varon is a leading supplier of girls' and boys' underwear and girls' daywear for mass merchandisers and regional chains. The majority of Varon's products are 100% cotton, while its thermal underwear line is 65% cotton and 35% polyester. Varon also manufactures 50/50 poly/cotton underwear for selected accounts. Varon's underwear line has been expanded to include daywear sets in a variety of fashion fabrics, thermal, and 100% cotton interlock underwear. These products are distributed under the AmyR brand, and through private label programs. The Company's strategy is to focus on growth within the underwear category through continued product development. Since introducing the thermal underwear line in 1990, Varon believes it is now the largest domestic supplier of girls' thermal underwear. Varon also manufactures a line of boys' underwear in thermal, cotton interlock, and jersey fabrics. Varon enjoyed another successful year of profitable growth in 1994. In order to meet increasing capacity demands and to further improve productivity and profitability, Varon is evaluating offshore production opportunities for 1995. Varon has always prided itself on manufacturing a high quality product, and providing excellent service and timely delivery to its customers, which resulted in Varon receiving Target Store's "Vendor Award of Excellence" for 1991, 1992, 1993, and 1994. Net Sales - Varon (In Millions) $14.8 $14.2 $15.6 $19.0 $20.5 1990 1991 1992 1993 1994 BISCAYNE APPAREL, INC. __________________________________________________________________ Company Profile Biscayne Apparel, Inc. is dedicated to designing, manufacturing, and marketing high quality products on a worldwide basis. Biscayne's products combine contemporary fashion influences with traditional classic design. Andy Johns Fashions International, founded in 1975, is an importer and manufacturer of active outerwear and sportswear for women and children. Andy Johns' products are designed, manufactured and marketed under the Andy Johnsþ, Andy Johns Kids, and KAOSþ labels. Mackintosh of New Englandþ has offered a line of premium wool coats for women since 1936. Mackintosh's products are primarily manufactured in New England for sale in the U.S.A. and, through its subsidiary, Mackintosh (U.K.) Ltd., in the United Kingdom and Europe. M&L International, Inc., founded in 1917, is a designer, manufacturer, and marketer of infants', toddlers', and children's outerwear, sportswear, and swimwear. M&L markets its outerwear products under the Weather Tamerþ brand name, which it owns, and the OshKosh B'Goshþ and BonJourþ brand names, which it licenses. M&L's sportswear and swimwear products are marketed under its Eclipse name brand. M&L has manufacturing operations in the Philippines, Hong Kong, and Bangladesh. Varon has been a major supplier of girls' underwear since the 1920's and recently expanded into thermals, daywear, and intimate apparel, and boys' underwear and thermals. Biscayne owns a 20% interest in Hartwell Sports, Inc., which manufactures casual jackets, knit shirts and activewear. Hartwell was founded in 1977 and is based in Hartwell, Georgia. CHART BHA Closing Stock Price on Dec. 31, $1.50 $2.25 $2.31 1992 1993 1994 Ends.