NEW YORK, Aug 1, 2002/ --- To all the Tommy Hilfiger fans out there - Tommy Hilfiger Underwear will be developed, designed and manufactured in-house starting June 2003.

The Hong Kong-based company announced yesterday that upon the expiration of its licensing agreement with Jockey International on May 31, 2003, the company will operate it's men's underwear business as an in-house unit.

The business will be overseen by Michael Spillane, who will add responsibility for men's underwear to his current position as President of the Tommy Hilfiger children's division. Mr. Spillane formerly headed up the Tommy Hilfiger men's underwear divison at Jockey and joined the company in 2001.

Tommy Hilfiger and Jockey International are separating amicably, with Jockey wanting to focus on their own brand, and Tommy Hilfiger wanting to put their in-house expertise in the underwear business.

On the announcement, Joel Horowitz, CEO of Tommy Hilfiger Corporation thanked Jockey for the work that they have done to launch and grow the Tommy Hilfiger's men's underwear business.

The decision to bring the underwear unit in-house is expected to create positive financial impact to the company.

With almost year for transition, it gives both companies enough time for an orderly transition of the business.