NEW YORK--(BUSINESS WIRE)--May 21, 1999--Net sales for the year slightly increased on a yen basis to 170.0 billion yen($1,435.4 million), having no change in billion yen basis against a year ago. Net income decreased 4.9 percent on a yen basis to 8.5 billion yen($71.7 million) against 8.9 billion yen from the previous year. The decrease in net income takes into account the extraordinary gain from the sale of the Shinjuku corporate building in the previous year. Earnings per American Depositary Shares(5 shares of common stock) were 275.4 yen ($2.33) on 30,823,000 average ADS shares outstanding compared to 289.7 yen on the same number of the prior year. In the domestic Japanese market during this fiscal year, the economy showed no signs of recovery, with its prolonged state of depression reflected in low consumer spending, a decrease in private capital investment and a deterioration in the employment market, as well as uncertainty in the financial system. The women's fashion apparel industry experienced a harsh operating environment, with consumer spending remaining low. In this environment, Wacoal aggressively strove to develop its business by improving the strength of its products, with special emphasis on the innerwear market. By product line, the Company's "Wacoal brand" products precisely caught outerwear trends, with its "Half-Cup Strap-Less Bra" producing favorable results for the Company in the Spring-Summer season. In the Fall-Winter season, consumers favorably accepted new product lines from the "French-Hook Bra" and the "Baby Hip Pants", to knitted innerwear lines like the "Attaka-Gokochi". Sales increased satisfactorily among the "Wing" brand named products, "Natural-Appu Bra" and "T-shirt Bra" in the Spring-Summer season, and the new lingerie in the Fall-Winter season. However, overall sales has not increased in any significance because consumer spending in Japan continues to stagnate. The decline in retail growth has also effected the Commercial Interior design and Display/fixture Division, one of Wacoal's domestic consolidated subsidiaries. In the United States, within an extremely competitive intimate apparel industry, Wacoal America, Inc., Wacoal's U.S. arm, has steadily increased its sales growth, both Wacoal brands and its licensed Donna Karan Intimates with ever gaining support for its highly regarded consultation sales efforts. Great strides were taken through the year to increase management efficiency, pursuing of cost reduction, and the reduction of operating cost. However the necessity to increase the projected benefit obligation for the Pension Plan caused by discount rate changes, and increase in marketing expenses for the DKNY launch in the U.S., along with the sale of the Shinjuku Corporate building listed in the previous year, has resulted in the decrease of net income from the previous year. For the fiscal year of 2000, Wacoal Corp. projects net income of 6.8 billion yen on net sales of 174 billion yen. Wacoal's American Depositary shares trade on the Over-the-Counter market under the ticker symbol "WACLY". The company's common stock is listed on the Tokyo stock exchange as well as on the Osaka and Kyoto stock exchanges. Wacoal Corp. and Consolidated Subsidiaries Financial Highlights Billions of Yen Millions of US $ 1999 1998 1999 Net Sales yen 170 yen 170.0 $ 1,435.4 Income Before Tax yen 13.3 yen 17.3 $ 112.0 Net Income yen 8.5 yen 8.9 $ 71.7 Notes: 1. The US dollar amounts in this statement for the fiscal 1999 represent transaction of the Japanese yen for convenience only at the actual approximate exchange rate on March 31, 1999 of yen 118.43 equals $1.00. 2. Cash dividends paid on preferred auction rate stock are deducted from Net Income for the computation of Earnings per American Depository Share.  