CYDS Cygne Designs (MM)

Cygne Designs, Inc. (NASDAQ: CYDS) today announced it received a Nasdaq Staff Deficiency Letter on July 16, 2008 indicating that the Company fails to comply with the minimum bid price requirement for continued listing set forth in Marketplace Rule 4310(c)(4). The letter gives the Company notice that the bid price of its common stock has closed under $1.00 for the last 30 consecutive business days. Pursuant to Nasdaq Marketplace Rule 4310(c)(8)(D), the Company was provided 180 calendar days to regain compliance. The Company did not regain compliance within the prescribed period and is not eligible for an additional 180 day compliance period. Accordingly, unless the Company requests an appeal of the determination, trading of the Company�s common stock will be suspended at the opening of business on July 25, 2008 and the Company�s securities will be removed from listing and registration on The Nasdaq Stock Market. Cygne Designs, Inc. is a designer, merchandiser, manufacturer and distributor of branded and private label women�s denim, casual and career apparel and men�s denim apparel with sales to retailers located in the United States. Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those projected. Such risks and uncertainties are discussed more fully in the Company�s Annual Report on Form 10-K for the year ended January�31, 2008 and the Company�s other filings with the Securities and Exchange Commission.