United States : True Religion Provides Update on Arbitration Proceeding

True Religion Apparel Inc provided an update related to an arbitration proceeding involving Guru Denim, Inc., the wholly owned subsidiary of True Religion Apparel, Inc., and The Indigo Group USA, Inc., a contract clothing manufacturer based in Gardena, California. The arbitration proceeding related to a claim of a breach of a Manufacturer's Agreement dated September 15, 2004, between the two parties and has resulted in a ruling by the arbitrator in favor of The Indigo Group USA, Inc. of an interim arbitration award of $1.5 million in damages, plus interest and costs.

True Religion Apparel said that the expected total exposure to the company related to the award, which includes legal costs, interest and the award itself, will approximate $0.05 per diluted share. The Company plans to record the charge in the second quarter ended June 30, 2006. The Company also stated that the outcome of the arbitration will have no bearing on the Company's future business or its manufacturing capabilities. The Company expects to report its full financial results for the second quarter on or about August 1, 2006.

True Religion Apparel, Inc. is a growing, design-based lifestyle brand. The company designs, manufactures and markets True Religion Apparel products, including its premium True Religion Brand Jeans. Its expanding product line, which includes high quality distinctive styling and fit, may be found in premier department stores and boutiques in North America, Europe, the Middle East and Japan.

Source : True Religion Apparel Inc