Liz Claiborne Home Signs Licensing Deal with Nouri

New York, NY, July 26, 2006–Liz Claiborne Inc., announced today that it has reached an agreement in principle with Nourison to design, manufacture and market area rugs and accent rugs under the Liz Claiborne Home brand name.

The area and accent rugs in the line will coordinate with Liz Claiborne Home bedding, bath and kitchen collections, as well as complement Liz Claiborne Home furniture.

The official launch to the trade is scheduled for the Atlanta
International Area Rug Market and World Market in Las Vegas in January
2007. Items will be available to consumers in mid-2007 at home furnishings
specialty retailers and flooring stores including Carpet One Floor & Home,
the exclusive retailer of Liz Claiborne Home carpet, hardwood and ceramic
tile flooring.

Commenting on the announcement, Virginia Bremer, director of licensing
for Liz Claiborne Home, said, “Nourison is recognized for the variety and
quality of its assortments, and is truly one of the best companies in the
industry. We view this partnership as an excellent opportunity to expand
our home offering and enhance our floor covering line.”

Alex Peykar, one of the principals of Nourison, comments, “We are
delighted to begin this partnership with Liz Claiborne Inc. Working
together, Liz Claiborne and Nourison will create a distinctive line of area
and accent rugs that will complement the other products in the Liz
Claiborne Home Collection and enable the consumer to create a coordinated
look in every room of her home.”

The Liz Claiborne Home Collection was launched in 2002 with the
introduction of flooring under the Liz Claiborne brand name. The line
currently includes furniture, bed, bath and window treatments, blankets and
throws, decorative fabrics, flooring and soft tabletop.

Nourison is one of the market’s most diversified producers and
importers of handmade area rugs. In the late 1990’s, Nourison began to
leverage its unique design and production expertise to create highly
differentiated collections of machine-made area rugs, accent rug
assortments for the domestics market, and most recently, luxury quality
broadloom and roll runners. Nourison also offers comprehensive programs
from signature handmade collections such as Nourison 2000, to prestige
designer lines like Calvin Klein home, and their award winning collections
of Grand Parterre and Ashton House broadloom.