Aussie Apparel Group Signs Letter-Of-Intent to Acquire TSA Brand Inc.

TSA Brand Forecasted to Add $47 Million in Revenue to Aussie Apparel Over Next 5 Years

LOS ANGELES, July 9, 2003 (PRIMEZONE) -- Aussie Apparel Group Ltd. (OTCBB:AASI), an emerging growth apparel company focused on the extreme sports enthusiast, announced today that it signed a letter-of-intent with TSA Brand Inc. to acquire the Santa Ana, CA-based company. Initial numbers provided by TSA to Aussie Apparel show sales of $1.5 million in 2002. TSA currently sells its product in 32 countries including Germany, France, England, Ireland, Canada, Australia and the Scandinavian Countries. Terms of the potential agreement were not disclosed.

Bruce MacGregor, President and CEO of Aussie Apparel, said, "We are very excited about the potential acquisition of TSA Brand Inc. The TSA apparel and accessories brand is a core extreme sports brand with a great heritage in skate and hip-hop. We feel that with the combined expertise of Aussie Apparel and TSA's existing management, led by Jim Waataja, the President of TSA Brand Inc., that TSA can experience incredible growth over the next five years."

Waataja said, "This is a remarkable opportunity for the TSA brand. I have to say that we are very excited about the enormous opportunity to take TSA, basically my child, to the next level through the right kind of exposure and marketing. I am looking for TSA to have a huge impact in this industry and in the fashion industry as a whole. Bruce's management experience and record of accomplishment in the industry with brands such as Avia, L.A. Gear and Razor Scooters was very attractive to us. He has clearly shown the ability to create growth!"

This announcement occurs two weeks after Aussie Apparel signed a letter-of-intent to purchase the brand name Bluetorch.

Both parties to the agreement anticipate a definitive agreement within four to six weeks.

About TSA Brand Inc.

The TSA brand was founded and launched in 1991 by Jim Waataja. Mr. Waataja was a professional skateboarder and decided that there was an opportunity to create a cool brand of apparel that he and his friends could wear. To this day, Mr. Waataja still skateboards, knees permitting! The brand was designed for skate with a strong hip-hop influence. TSA continues to utilize professional skateboarders to this day in order to keep the TSA buzz alive in the marketplace. TSA currently has 7 riders under contract, including, Jereme Rogers, Chris Senn, Elissa Steamer and Mike Maldonado

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This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.


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