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Class action litigation has commenced in the United States District Court for the Southern District of New York on behalf of all individuals and entities that purchased the common stock of Warnaco Inc. ("Warnaco" or the "Company") (NYSE: WAC, now NASDAQ: WRNC): between August 15, 2000 and June 8, 2001, inclusive (the "Class Period").

Five related securities class actions (the "Actions") have been filed and consolidated into the action styled In re Warnaco Sec. Litig. (II), No. 01-CV-3346 (MCG) (S.D.N.Y.). The consolidated action is currently pending before United States District Court Judge Miriam Goldman Cedarbaum, who presides over this action in New York, New York. The consolidated action alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), as amended by the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), and Rule 10b-5 promulgated thereunder against Linda Wachner (former Chief Executive Officer), William S. Finkelstein (former Chief Financial Officer), Stanley P. Silverstein (former General Counsel), and the Company's auditors, Deloitte & Touche LLP ("Deloitte"). The Actions were not brought against Warnaco because it filed a voluntary petition for Chapter 11 Bankruptcy one day after the end of the Class Period. The consolidated action is continuing against the other defendants.

The consolidated action alleges that Warnaco, a retail clothing manufacturer and distributor, and the other defendants provided materially false and misleading statements and omissions concerning the Company's financial condition, results of operations, and business prospects. The Company reported reassuring earnings and adequate liquidity throughout most of the Class Period. However, undisclosed to the investing public was at least the following: Warnaco was in de facto default of its loan agreements throughout much of the Class Period; the Company's books and records were riddled with accounting fraud and errors because of almost a complete lack of internal controls resulting in overstatements, inter alia, of inventories, accounts receivables and shareholders' equity, and unreconciled intercompany accounts in violation of Generally Accepted Accounting Principles. As announced after the end of the Class Period, Warnaco was required to restate its financial statements issued during the Class Period several times, ultimately resulting in downward adjustments to shareholders' equity by orders of magnitude. The consolidated action also alleges that Deloitte, inter alia, failed to perform its audits and reviews of the Company's financial statements in accordance with Generally Accepted Auditing Standards. The Company's stock traded as high as $5.43 per share during the Class Period.

The motion to dismiss the Exchange Act claims by the individual defendants have been denied. Defendant Deloitte moved to dismiss the fourth amended class action complaint (the "Complaint"). Plaintiffs have opposed Deloitte's motion.

If you acquired the securities of the defendants during the Class Period you may, no later than Jan-30-04, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.