News Flash

VF to sell intimate apparel business to Fruit of Loom Inc

24 Jan '07

2 min read

VF Corporation:
• Move Enhances VF's Business Mix, Growth and Margins
• Proceeds to be Used to Repurchase Shares
• Expects Record Fourth Quarter for 2006
• 2007 Initial Guidance Provided

Management will host a webcast and conference call to discuss this announcement at 10:00 a.m. ET. Interested parties should call 1-800-811-8824 domestic, or 1-913-981-4903 international, to access the call.

You may also access this call via the Internet at company's website. A replay will be available through January 30, 2007 and can be accessed by dialing 1-888-203-1112 domestic, and 1-719-457-0820 international. The pass code is 6403506. A replay also can be accessed at the Company's web site.

VF Corporation announced that it has signed a definitive agreement to sell its global intimate apparel business to Fruit of the Loom Inc, a subsidiary of Berkshire Hathaway Inc for $350 million in cash.

VF's intimate apparel business includes such leading brands as Vanity Fair, Lily of France, Vassarette, Bestform and Curvation in the U.S., and Lou, Gemma and Belcor in Europe.

The agreement is subject to government approvals and customary closing conditions and is expected to be completed in the first quarter of 2007. VF currently intends to use the proceeds from the sale to repurchase shares in 2007.

"This marks an important chapter in VF's ongoing transformation toward becoming a higher growth, higher margin lifestyle company -and another example of our willingness to take bold steps to enhance total shareholder value," said Mackey J. McDonald, VF's Chairman and Chief Executive Officer.

"Our Intimates business has been a positive and important contributor to VF's success over our 100-plus year history. But the time has come to strategically rebalance our portfolio and to focus our energies and resources on the many growth opportunities across our Jeanswear, Outdoor, Imagewear and Sportswear businesses."

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VF Corporation

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