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R.G. BARRY CORPORATION - AMEX Announcement

After 18 months on the over-the-counter bulletin boards, R.G. Barry Corp.'s stock joined the American Stock Exchange on Friday December 2, 2005. R.G. Barry, the Dearfoams® company, is one of the North America's leading suppliers of at home comfort footwear. Its products are sold through traditional, promotional and national chain department stores, discount stores, warehouse clubs, supermarkets, and specialty retailers.

Thomas Von Lehman R.G. Barry now trades under the symbol DFZ. The symbol is meant to evoke Barry's best-known brand, Dearfoamsâ slippers. Thomas M. Von Lehman, a principal of The Meridian Group and currently the President and Chief Executive Officer of R.G. Barry, rang the opening bell at the American Stock Exchange on Wednesday, January 18, 2006, to celebrate the company's recent listing.

Barry was delisted from the New York Stock Exchange in June 2004 after its stock fell below the exchange's standards for market capitalization. For the fiscal years 1999 through 2003, the Company’s combined loss was $48 million; and RGB saw its shareholder’s equity fall from $75 million to a little over $25 million.

In January of 2004, Meridian was engaged to develop a strategic plan that would return RGB to profitability. Thomas Von Lehman joined the company in March 2004 at the request of RGB’s board of directors to effectively implement the plan. For the first nine months of 2005, the Company reported net earnings of approximately $3.3 million, compared to a net loss of $24.2 million in the equivalent period of 2004. The Company’s stock price has more than tripled since early 2004. Barry’s success is largely attributable to following the restructuring plan outlined by Meridian. The plan called for the company to close its factories in Mexico; outsource all of its production to Asia; and dramatically reduce overhead expenses.

The AMEX listing is a sign that the difficult two-year turnaround is nearing completion.  The focus for the Company now is to find ways to profitably grow the business.

Barry will report its annual results at the end of February or early March.  The company is expected to announce its first profit since 2001.


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