Liz Claiborne Inc. Implements CEO Succession Process; Chairman and CEO Paul Charron to Retire at End of 2006; Trudy Sullivan Named President

Liz Claiborne Inc. also announced today that Executive VicePresident Trudy Sullivan, 56, has been named President. In that role,Sullivan will have expanded global responsibility for the businesslines and myriad brands in the Company's portfolio.

Bernard Aronson, Chairman of the Board's Nominating and GovernanceCommittee, said, "Under Paul's stewardship, Liz Claiborne Inc. hasbeen transformed into one of the world's largest designers andmarketers of fashion apparel and accessories. The Company has evolvedfrom being dependent on a namesake brand sold almost exclusivelythrough U.S. department stores into a powerful international,multi-brand and multi-channel business. For over a decade, Paul hasbeen instrumental in driving growth, both organically and throughsuccessful acquisitions, generating substantial returns for ourinvestors and new opportunities for our customers and associates. Wethank him for his strong leadership, passion and dedication. We arefortunate to be able to rely on Paul's continued commitment in theyear ahead as he and his team pursue the important initiatives thatare under way. The Board is focused on finding the best leader for theCompany going forward and on ensuring a smooth transition."

Charron said, "Trudy Sullivan is an outstanding executive withstrong strategic, operating and business development skills. Trudy'sexceptional leadership qualities, marketing and merchandisingexpertise, deep understanding of our global brands, and strongrelationships with associates, customers and the Wall Streetcommunity, make her a key player on the Liz Claiborne team. TheCompany will undoubtedly benefit from Trudy's years of experience inretail and direct-to-consumer business, and we look forward to an evengreater contribution from her in her new role as President."

Charron continued, "I am very proud of what we have accomplishedover the past 12 years. With a robust and diverse portfolio ofhigh-quality brands, deep bench of management and creative talent,powerful supply chain, and strong balance sheet and cash flow, theCompany is well positioned in today's unforgiving environment. Thereis much to be accomplished in 2006, and I look forward to achievingour business goals while working closely with the Board to effect asmooth succession."

Sullivan said, "I am extremely pleased to be taking on the role ofPresident at this important juncture in the Company's development.During my tenure, I have been privileged to help grow our businessinto one of the most diverse and well-balanced portfolios in theindustry with products sold around the world in every major retailchannel. I look forward to continuing to work with the talented peopleat Liz Claiborne Inc. as we seek to take full advantage of our manymarket opportunities in the years ahead."

Charron joined Liz Claiborne Inc. in 1994 as Vice Chairman, ChiefOperating Officer, and a Director. In 1995, Charron became President(a position he held until October 1996) and was named Chief ExecutiveOfficer. In 1996, he also became Chairman of the Board. Prior tojoining the Company, he had served since 1988 in senior executivecapacities including Group Vice President and Executive Vice Presidentat VF Corporation. Charron is a director of Campbell Soup Company andserves on a number of not-for-profit boards, including the NationalRetail Federation, the American Apparel & Footwear Association, VitalVoices Global Partnership and the Partnership for New York City.

Sullivan joined Liz Claiborne Inc. in 2001 as Group President, LizClaiborne Casual, Collection and Liz Claiborne Woman. In 2002, she wasnamed an Executive Vice President and assumed additionalresponsibility for Accessories, Cosmetics, Retail, Outlet andLicensing, and since 2005 has had oversight responsibility for all ofthe Company's brands. Previously, Sullivan had been President of J.Crew Group, Inc. Earlier in her career, she held positions at TheAvenue, Decelle, T. Deane and Filene's. She began her career as abuyer for Jordan Marsh.

About Liz Claiborne Inc.

Liz Claiborne Inc. designs and markets an extensive range ofwomen's and men's fashion apparel and accessories appropriate towearing occasions ranging from casual to dressy. The Company alsomarkets fragrances for women and men. Liz Claiborne Inc.'s brandsinclude Axcess, Belongings, Bora Bora, C&C California, City Unltd.,Claiborne, Crazy Horse, Curve, Dana Buchman, Elisabeth, Ellen Tracy,Emma James, Enyce, First Issue, Intuitions, J.H. Collectibles, JuicyCouture, Lady Enyce, Laundry by Shelli Segal, LIZ, Liz Claiborne,Lucky Brand, Mambo, Marvella, MetroConcepts, Mexx, Monet, Monet 2,prAna, Realities, Rhythm & Blues, Sigrid Olsen, Soul, Spark, Stamp 10,Tapemeasure, Tint, Trifari and Villager. In addition, Liz ClaiborneInc. holds the exclusive, long-term license to produce and sell men'sand women's collections of DKNY(R) Jeans and DKNY(R) Active in theWestern Hemisphere. The Company also has the exclusive license toproduce jewelry under the Kenneth Cole New York and Reaction KennethCole brand names.

Forward Looking Statements

Statements contained herein that relate to future events or theCompany's future performance, including, without limitation,statements with respect to the Company's anticipated results ofoperations or level of business, are forward-looking statements withinthe safe harbor provisions of the Private Securities Litigation ReformAct of 1995. Such statements are based on current expectations onlyand are not guarantees of future performance, and are subject tocertain risks, uncertainties and assumptions. The Company may changeits intentions, belief or expectations at any time and without notice,based upon any change in the Company's assumptions or otherwise.Should one or more of these risks or uncertainties materialize, orshould underlying assumptions prove incorrect, actual results may varymaterially from those anticipated, estimated or projected. Inaddition, some factors are beyond the Company's control. Among thefactors that could cause actual results to materially differ includerisks related to the continuing challenging retail and macroeconomicconditions, including the levels of consumer confidence anddiscretionary spending and the levels of customer traffic withindepartment stores, malls and other shopping and selling environments,and a continuation of the deflationary trend in prices for apparelproducts; risks associated with the Company's dependence on sales to alimited number of large United States department store customers; theimpact of consolidation among one or more of the Company's largercustomers, such as the recently completed merger between FederatedDepartment Stores, Inc. and The May Department Store Company; risksassociated with providing for the succession of senior management;risks related to retailer and consumer acceptance of the Company'sproducts; risks related to the Company's ability, especially throughits sourcing, logistics and technology functions, to operate withinsubstantial production and delivery constraints, including risksassociated with the possible failure of the Company's unaffiliatedmanufacturers to manufacture and deliver products in a timely manner,to meet quality standards or to comply with Company policies regardinglabor practices or applicable laws or regulations; risks related tothe Company's ability to adapt to and compete effectively in the newquota environment, including changes in sourcing patterns resultingfrom the elimination of quota on apparel products, as well as loweredbarriers to entry; risks associated with the Company's ability tomaintain and enhance favorable brand recognition; risks associatedwith the operation and expansion of the Company's own retail business;risks associated with the Company's ability to correctly balance thelevel of its commitments with actual orders; risks associated with theCompany's ability to identify appropriate acquisition candidates andnegotiate favorable financial and other terms, against the backgroundof increasing market competition (from both strategic and financialbuyers) for the types of acquisitions the Company has made; risksassociated with acquisitions and new product lines and markets,including risks relating to integration of acquisitions, retaining andmotivating key personnel of acquired businesses and achievingprojected or satisfactory levels of sales, profits and/or return oninvestment; risks associated with the Company's ability to attract andretain talented, highly qualified executives and other key personnel;risks associated with any significant disruptions in the Company'srelationship with, and any work stoppages by, its employees, includingits union employees; risks associated with changes in social,political, economic, legal and other conditions affecting foreignoperations, sourcing or international trade, including the impact offoreign currency exchange rates, currency devaluations in countries inwhich the Company sources product; risks associated with war, thethreat of war and terrorist activities; work stoppages or slowdowns bysuppliers or service providers; risks relating to protecting andmanaging intellectual property; and such other economic, competitive,governmental and technological factors affecting the Company'soperations, markets, products, services and prices and such otherfactors as are set forth in our 2004 Annual Report on Form 10-K,including, without limitation, those set forth under the heading"Business-Competition; Certain Risks" and under the heading "StatementRegarding Forward-Looking Statements" and other documents filed by theCompany with the Securities and Exchange Commission. The Companyundertakes no obligation to publicly update or revise anyforward-looking statements, whether as a result of new information,future events or otherwise.