Danier Leather to Reduce Costs

TORONTO, ONTARIO, Apr 07 (MARKET WIRE) --
Danier Leather Inc. (TSX: DL) today announced initiatives to reduce costs
and position it for improved financial performance.

Mr. Jeffrey Wortsman, President and Chief Executive Officer of Danier
Leather Inc., stated: "In light of the current uncertain business and
economic environment, we are taking the necessary steps to reduce our
costs while continuing to execute our strategy of providing our customers
with exciting merchandise at remarkable prices and value."

Danier is implementing a number of initiatives to reduce costs including:

- Head office staff - Danier's 130 person head office staff will be
reduced by approximately 22 individuals for anticipated annualized
savings of approximately $1.3 million. A one-time charge of approximately
$0.6 million for severance payments for the affected employees is
expected to be recognized in the third quarter.

- Domestic manufacturing - Approximately 13% of Danier's garments are
produced at its manufacturing facility in Toronto. Danier will be
reducing its domestic manufacturing capacity by approximately 50%
resulting in a workforce reduction of approximately 56 employees. The
workforce reduction is anticipated to reduce Danier's domestic
manufacturing cost base by approximately $1.3 million. A one-time charge
of approximately $0.8 million for severance payments for the affected
employees is expected to be recognized in the third quarter. The domestic
manufacturing process has been reengineered to be more flexible and allow
for faster turnaround. In addition, capacity can be scaled up should
volume requirements increase in the future.

Mr. Wortsman added, "The Company remains committed to work towards
achieving sustained profitability. In addition to these initiatives,
other expenses will be examined with a view to maximizing operational
efficiency at Danier."

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 89 shopping mall, street-front,
and power centre stores, or through its corporate sales division.
Danier's products are also available at the Dubai Mall and the Festival
City Mall in Dubai. For more information about the Company and our
products, see www.danier.com.

Note: This press release contains forward-looking information and
forward-looking statements which reflect the current view of Danier with
respect to the Company's objectives, plans, goals, strategies, future
growth, results of operations, financial and operating performance and
business prospects and opportunities. Wherever used, the words "may",
"will", "anticipate", "intend", "expect", "estimate", "plan", "believe"
and similar expressions identify forward-looking statements and
forward-looking information. Forward-looking statements and
forward-looking information should not be read as guarantees of future
events, performance or results, and will not necessarily be accurate
indications of whether, or the times at which, such events, performance
or results will be achieved. All of the statements in this press release
containing forward-looking statements or forward-looking information are
qualified by these cautionary statements.

Forward-looking statements and forward looking information are based on
information available at the time they are made, underlying estimates and
assumptions made by management and management's good faith belief with
respect to future events, and are subject to inherent risks and
uncertainties surrounding future expectations generally. Such risks and
uncertainties include, but are not limited to, fashion and apparel and
leather industry risks that can affect demand for the Company's products
and inventory markdowns, a real or perceived slowdown in the general
economy which can result in a reduction in consumer spending and can
affect demand for the Company's products, changes in consumer shopping
patterns away from shopping malls and power centres, unseasonably hot
weather or severe or unusual weather that prevents customers from going
to the Company's stores, seasonality, heightened competition including
new competitors and expansion of current competitors, foreign currency
fluctuations which result in increased costs, leather availability and
prices, consumer demand, disruptions in the credit markets, risks
associated with foreign sourcing and manufacturing, existing and
potential legal proceedings, ability to successfully implement the
Company's business strategy, ability to realize anticipated cost savings,
war and acts of terrorism, higher utility and fuel prices which can
result in increased costs, the ability of the Company to attract and
retain key executives and key employees, the ability of vendors to
maintain, support and upgrade management information systems,
catastrophic or other events that impact the use of the Company's head
office and distribution centre, increased inflation and interest rates,
changes or disruptions in the securities markets, the ability of the
Company to obtain new locations or renew or relocate existing locations
at existing or favourable lease terms, changes to the regulatory and
economic environment in which the Company operates now and in the future,
including changes in accounting policies or pronouncements introduced by
regulatory authorities, changes in the Company's tax liabilities, either
through changes in tax laws or future assessments, and performance of
third party service providers, among other things.

Danier cautions readers that this list of factors is not exhaustive and
that should certain risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual events, performance or
results may vary significantly from those expected. There can be no
assurance that the actual results, performance, events or activities
anticipated by the Company will be realized or, even if substantially
realized, that they will have the expected consequences to, or effects
on, the Company. Potential investors and other readers are urged to
consider these factors carefully in evaluating forward-looking
information and forward-looking statements and are cautioned not to place
undue reliance on any forward-looking information or forward-looking
statements.

For additional information with respect to certain of these and other
risks or uncertainties, reference should be made to Danier's continuous
disclosure materials filed from time to time with Canadian Securities
Regulatory Authorities, including the Company's annual information form,
quarterly and annual reports, and supplementary information, which are
available on SEDAR at www.sedar.com and in the Investor Relations section
of the Company's website at www.danier.com. Additional risks and
uncertainties not presently known to the Company or that Danier currently
believes to be less significant may also adversely affect the Company.
Danier disclaims any intention or obligation to update or revise any
forward-looking information or forward-looking statements, whether as a
result of new information, future events or otherwise.

Contacts:
Investor Relations Contact
Danier Leather Inc., Jeffrey Wortsman
President and Chief Executive Officer
(416) 762-8175, ext. 302
(416) 762-7408 (FAX)
leather@danier.com

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

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