Levi Strauss & Co. Announces Asset Purchase Agreement with Anchor Blue Retail Group

SAN FRANCISCO--(Business Wire)--
Levi Strauss & Co. (LS&CO.) today announced it has entered into an Asset
Purchase Agreement to acquire the operating rights to 73 Levi`s and Dockers
Outlet by MOST stores that are licensed to Anchor Blue Retail Group, Inc.

The transaction involves Levi`s and Dockers Outlet by MOST stores operated by
Anchor Blue Retail Group, Inc., including inventory, fixtures and equipment
associated with the stores.

"This proposed acquisition is a natural next step in our long-term growth
strategy," said Robert Hanson, president of Levi Strauss Americas. "The outlet
channel is poised for continued growth over the near- and long-term. We believe
that this transaction will strengthen our ability to manage our brands`
positioning effectively in the outlet channel, will provide a profitable growth
opportunity for LS&CO., and will ensure that we can continue to provide outlet
shoppers with the great value and world-class quality they expect from Levi`s
and Dockers products."

Concurrent with this announcement, Anchor Blue Retail Group, Inc. and its
subsidiaries have filed a voluntary petition under Chapter 11 of the U.S.
Bankruptcy Code in the Bankruptcy Court for the District of Delaware (the
"Bankruptcy Court") to enter a 363 sale process to facilitate a restructuring
and to seek Bankruptcy Court approval for the sale of the Levi`s and Dockers
stores to Levi Strauss & Co.

Completion of the transaction is subject to a number of closing conditions,
including the approval of the Bankruptcy Court. Subject to such conditions, the
transaction is expected to close in July. Anchor Blue Retail Group has indicated
its Levi's and Dockers Outlet stores will remain open for business without
interruption during the period prior to closing the proposed acquisition.

About Levi Strauss & Co.

Levi Strauss & Co. is one of the world`s largest branded apparel companies and
the global leader in jeanswear, marketing its products in more than 110
countries worldwide. The company designs and markets jeans, casual wear and
related accessories for men, women and children under the Levi`s, Dockers San
Francisco and Signature by Levi Strauss & Co. brands. Levi Strauss & Co.
reported fiscal 2008 net revenues of $4.4 billion. For more information, go to
http://levistrauss.com.

This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on our current assumptions, expectations and projections
about future events and are necessarily estimates reflecting the best judgment
of our senior management. Actual results could differ materially from those
suggested by the forward-looking statements due to risks and uncertainties
including those disclosed in our filings with the U.S. Securities and Exchange
Commission, including our Annual Report on Form 10-K for the fiscal year ended
2008, especially in the "Management`s Discussion and Analysis of Financial
Condition and Results of Operations" and "Risk Factors" sections and our other
reports. In light of these or other unknown risks and uncertainties, the
forward-looking events discussed in this news release may not occur. You are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this news release. We are not under any obligation
and do not intend to make publicly available any update or other revisions to
any of the forward-looking statements contained in this news release to reflect
circumstances existing after the date of this news release or to reflect the
occurrence of future events even if experience or future events make it clear
that any expected results expressed or implied by those forward-looking
statements will not be realized.

Levi Strauss & Co.
Roger Fleischmann, 800-438-0349
Jeff Beckman, 415-501-3317

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