Jones Apparel Group, Inc. has entered into a definitive stock purchase agreement to sell its Polo Jeans Company business to Polo Ralph Lauren Corporation. The company and Polo Ralph Lauren Corporation have also entered into a settlement and release agreement to settle the pending litigation between the respective parties, including a former Jones executive, upon closing of the stock purchase agreement.

Jones Apparel Group, Inc. will receive an aggregate $355 million in cash at closing, which is expected in early February 2006. Jones will also retain the distribution and product development facilities located in El Paso, Texas, along with certain working capital items, including accounts receivable and accounts payable. Polo Ralph Lauren Corporation will acquire the stock of a Jones wholly-owned subsidiary whose primary assets include the Polo Jeans licence, inventory, a New York operating lease for administrative/showroom space and certain other assets.