Operating Results

Nitches reported that consolidated net sales for the third quarter of fiscal 2008 increased 35.1% to $26.3 million versus $19.5 million for the third quarter of 2007. The sales increase was attributable primarily to the inclusion of results from Backwoods(R), a specialty retail chain selling outdoor lifestyle products, which the Company acquired in February 2008. Incremental sales of home decor products, notably new Paula Deen(R) branded dinnerware, as well as women's sleepwear and men's sportswear also contributed to the increase. Consolidated net sales for the nine months ended May 31, 2008 increased 9.3% to $75.6 million versus $69.2 million for the nine months ended May 31, 2007.

The Company reported a consolidated net loss of $129,000 for the third quarter of fiscal 2008 versus a net loss of $432,000 in the third quarter last year. The third quarter loss per basic and diluted share was $.02 versus a loss of $.08 per basic and diluted share for the third quarter of fiscal 2007. Consolidated net loss of $1.5 million for the nine months ended May 31, 2008 compares with net income of $249,000 for the nine months ended May 31, 2007. For the current year period, the loss was $.26 per basic and diluted share versus earnings of $.05 per basic share and diluted share for the first nine months of fiscal 2007.

Earnings continued to be negatively impacted during the current three and nine month periods by lower realized gross margins due to pricing pressures and higher sales allowances granted to significant customers amid a weakening retail environment. Furthermore, noncash amortization and stock compensation expenses, an increase in both cash and noncash interest expenses related to the Company's convertible debentures issued in June 2007, as well as increased borrowings under the Company's factoring agreement, all contributed to the net loss.

At May 31, 2008, the Company had unfilled customer orders of $31.1 million compared to $45.2 million at the same time last year, with such orders generally scheduled for delivery by November 2008 and November 2007, respectively. The decrease in backlog is primarily due to reductions in orders for the Company's women's sleepwear and men's and women's sportswear, offset partially by an increase in orders for new Paula Deen(R) dinnerware and related items sold under license. The reduction in orders is attributable to the general slowdown in the U.S. economy, as well as the decision by management to not accept sales where the risk of retailer markdowns (deductions claimed by retailers against invoices due) is deemed to be too high.

"We are pleased with our top line revenue growth of 35.1% for the quarter and 9.3% for the year," commented Steve Wyandt, Chairman and CEO of Nitches. "We also continue to have success controlling the cash-based expenses of our operations. However, the persistent poor gross margin performance of our wholesale businesses reflects the pressures we are facing from higher costs of supply with no commensurate increase in wholesale prices, as well as our exposure to credit losses and markdown claims from retailers."

As for the reduction in wholesale order backlog, Mr. Wyandt remarked, "Mergers, store closings and bankruptcies are reducing our wholesale customer base. Additionally, the erosion of wholesale gross margins warrants a more cautious approach to our traditional markets. As we shift our revenue mix from lower margin private label products to higher margin branded lines of business such as our Paula Deen(R) products and direct ownership of Backwoods(R) specialty retail stores, we are being more selective about who we sell to in our wholesale product lines."

Paula Deen(R) License

Nitches also announced the signing of a multi-year sublicense agreement with MVP Group International, Inc. to produce and distribute a line of Paula Deen(R) candles primarily for sale to Wal-Mart. The candles will be food-scented based on popular recipes of celebrity chef and Food Network television personality Paula Deen. MVP has already received orders to ship Paula Deen(R) branded candles to approximately 1,000 Wal-Mart stores for the Fall 2008 season. MVP is a major candle supplier to U.S. discount retailers, drug stores, and mass merchants. The sublicense was issued under the Company's broad license to produce, distribute and sublicense Paula Deen(R) branded products.

About Nitches

Nitches, Inc. has been designing and marketing quality products for niche markets since 1971. The Company's owned and licensed apparel brands include Adobe Rose(R), Anne Lewin(R), Claire Murray(R), Crabtree & Evelyn(R), Derek Rose(R), Dockers(R), Eminence(R), Gossard(R), Nat Nast(R), Princesse tam tam(R), Saguaro(R), Shock Absorber(R), The Skins Game(R), So-Cal Speed Shop(R), Southwest Canyon(R), and ZOIC(R). The Company also distributes home decor products under the Bill Blass(R) brand and tabletop items such as dinnerware under the Paula Deen(R) brand. The Company's products are sold to better department stores, specialty boutiques, moderate department stores, and national and regional discount department stores and chains. The Company develops and manufactures private label products for many leading retailers and multi-channel marketers. As of February 1, 2008, the Company also operates eight Backwoods(R) outdoor lifestyle specialty retail stores in Kansas, Oklahoma, Nebraska and Texas. Visit our web site at www.nitches.com to learn more about our brands and our company.

Nitches is headquartered in San Diego, California with offices in New York City, Los Angeles, Dallas, Austin and Hong Kong. The Company's shares are traded on the NASDAQ Capital Market under the symbol NICH.

Backlog amounts include both confirmed orders and unconfirmed orders that the Company believes, based on industry practice and past experience, will be confirmed. While cancellations, rejections and returns have generally not been material in the past, there can be no assurance that such action by customers will not reduce the amount of sales realized from the backlog of orders at a given point in time. The amount of unfilled orders at any given time is affected by a number of factors, including the timing of the receipt and processing of customer orders and the scheduling of the manufacture and shipping of the product, which may be dependent on customer requirements.

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among other things, a softening of retailer or consumer acceptance of the Company's products, pricing pressures and other competitive factors, or the unanticipated loss of a major customer. The Company's results may also differ materially from period to period due to the seasonal nature of the Company's product lines. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission.

                        Three Months Ended          Nine Months Ended
                    --------------------------  --------------------------
                       May 31,       May 31,       May 31,       May 31,
                        2008          2007          2008          2007
                    ------------  ------------  ------------  -------------
Net sales           $ 26,316,000  $ 19,475,000  $ 75,572,000  $  69,170,000
Operating income
 (loss)             $    321,000  $   (494,000) $   (216,000) $   1,189,000
Net income (loss)   $   (129,000) $   (432,000) $ (1,529,000) $     249,000
Basic earnings
 (loss) per share   $      (0.02) $      (0.08) $      (0.26) $        0.05
Diluted earnings
 (loss) per share   $      (0.02) $      (0.08) $      (0.26) $        0.05
Weighted average
 number of common
 shares:
Basic                  6,019,644     5,421,259     5,818,622      5,193,555
Diluted                6,019,644     5,421,259     5,818,622      5,297,123

Contact:
Paul Wyandt
Web:  http:// www.nitches.com
E-mail:  Email Contact
Phone:  (858) 625-2633  (Option # 1: Corporate)

SOURCE: Nitches, Inc.

http://
http://www.nitches.com
http://www2.marketwire.com/mw/emailprcntct?id=A782CAED784F5419

"The power of celebrity is still very important, but the dynamic is changing quite a bit," said Marshal Cohen, chief industry analyst, The NPD Group, Inc. "It is no longer just a popularity contest, authenticity counts, too. Authenticity by way of actual, real world experience and that's what makes a celebrity's association with products and brands more real, more believable."

The Celebrity Influence-2008 study tested consumers' overall awareness of some 200 celebrities. Brad Pitt and Britney Spears are the most well known among all those tested, on an aided basis. Rounding out the Top 5 are Oprah Winfrey, Madonna, and Tom Cruise.

A key consideration in any product or brand endorsement relationship is a celebrity's likeability among consumers. In this NPD study, Will Smith scored highest for being liked by consumers, with 83% of those who know the actor saying they like Will Smith "strongly" or "somewhat."

Top 5 Celebrities - Likeability*
1 Will Smith
2 Denzel Washington
3 Matt Damon
4 Halle Berry
5 George Clooney

*Net Rating -% Among those aware of celebrity

Source: The NPD Group, Inc./Celebrity Influence 2008

Another key component of celebrities' influence on consumer purchasing behavior is the celebrity "trust factor"; the ability of celebrities to appear believable when they represent products or brands. Among those familiar with each celebrity, Oprah Winfrey's interior designer, Nate Berkus, tops the list of the most trusted celebrities, with Will Smith ranking second.

Overall, the study shows that celebrity chefs perform very well when it comes to eliciting trust in the minds of consumers. In fact, nine of the top 25 most trusted celebrities are chefs, including Mario Batali, Paula Deen, and Rachel Ray. "These celebrities spawned of cooking or design are big hits with consumers. Today's consumer doesn't just want to 'be' like a celebrity, they want to 'do' like them, too,"

Top 5 Celebrities - Positive Trust*
     1 Nate Berkus
     2 Will Smith
     3 Mario Batali
     4 Tiger Woods
     5 Paula Deen

*Net Rating -% Among those aware of celebrity

Source: The NPD Group, Inc./Celebrity Influence 2008

Cohen adds. "I think it should be noted that not all celebrity associations hit home runs. For example, in fragrances we are seeing some celebrity impact wane for women. And in the sportswear market even some of the tried and true celebrity associations aren't enough to make the right connections with consumers. If the product isn't right, a celebrity endorsement or association isn't a magic bullet."

Methodology: The survey was administered to a nationally representative sample of over 4,500 adults and teens age 13+ selected from NPD's Online Panel and fielded from March 13-20, 2008.

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/.

SOURCE: The NPD Group, Inc.

The NPD Group, Inc.
Beth Boyle, 516-625-4603
beth_boyle@npd.com

The list of participating culinary personalities and winemakers reads like a who's who of the culinary world with acclaimed personalities such as Alain Ducasse, Ferran Adria, Rachael Ray, Giada De Laurentiis, Bobby Flay, Paula Deen, Baroness Philippine de Rothschild, George Sandeman and Adolfo Folonari among those slated to appear. For the more than 20,000 attendees at this inaugural festival, it's a once in a lifetime opportunity to get close to culinary stars at sell out events such as the Rachael Ray hosted MGM Grand at Foxwoods Burger Bash Presented by Blue Moon, Chelsea Market After Dark Presented by Food Network and Hosted by Bobby Flay and, returning on the heels of last year's success, Ferrero(R) Chocolates Present SWEET Sponsored by Perrier-Jouet and Absolut Vodka Posted hosted by Duff Goldman.

While guests at this first-ever weekend festival will be enjoying an extensive array of culinary delights and premium wines and spirits, the 2008 Food Network New York City Wine & Food Festival will be helping to ensure that no New Yorker goes hungry. As a committed supporter of Food Bank For New York City and Share Our Strength, the festival has pledged all proceeds to make certain that these vital organizations can continue to help the most needy.

"We are so proud to be a beneficiary of this year's festival. With this commitment we will be able to truly make a difference in the lives of thousands in New York and around the country," says Bill Shore, Founder and Executive Director of Share Our Strength. "The inaugural festival gives support to the hungry at a critical time and will enable our organizations to effect real change here in New York City and beyond. It couldn't have come at a better time," reiterates Lucy Cabrera, President and CEO of Food Bank For New York City. "We are thrilled to have Southern Wine and Spirits of New York helping us and for being such a great partner to Share Our Strength and Food Bank For New York City. "

Nearly 1 in 6 New Yorkers will seek sustenance from a soup kitchen or food pantry this year and more than 3 million will find it more difficult than ever to afford basic food supplies. To address this need, Food Bank For New York City has dedicated itself to making meals accessible to New York's neediest: women, children, seniors and the working poor. Through its network of more than 1,000 community-based programs the Food Bank helps to provide food for more than 300,000 free meals a day. This, coupled with a vigorous food stamp outreach program and an Earned Income Tax Credit initiative, enables the Food Bank to help support hundreds of thousands of families last year and now. The support of the 2008 Food Network New York City Wine & Food Festival is helping the Food Bank continue its efforts to end food poverty amidst enormous challenges set forth by the current financial crisis and rising costs of food and fuel.

Share Our Strength is a national organization dedicated to ending childhood hunger in America. Funds raised from the 2008 Food Network New York City Wine & Food Festival will go to Share Our Strength's childhood hunger strategy, a plan focused on long-term solutions to ending childhood hunger. Recognized as one of the country's most effective nonprofit organizations for nearly 25 years, Share Our Strength connects families with food. To date, the organization has raised more than $200 million in the fight against hunger. With the funds raised from the festival, Share Our Strength will continue to help the more than 571,000 children that live under the poverty level in New York City, and the more than 12 million kids nationwide at risk of hunger.

The 2008 Food Network New York City Wine & Food Festival presented by Food & Wine and Travel+Leisure Magazines kicks off on Thursday, October 9th with a celebrity-filled roster of attendees and events. For food lovers, it's the must have ticket of the year and when all proceeds benefit the works of Food Bank For New York City and Share Our Strength everyone can be a star.

For most updated event and talent information or to purchase select tickets for the 2008 Food Network New York City Wine & Food Festival visit our Web site: www.nycwineandfoodfestival.com or visit the Target Welcome Center located at 10th Avenue and 15th Street.

SOURCE 2008 Food Network New York City Wine & Food Festival

http://www.nycwineandfoodfestival.com

The 2009 festival kicks-off on Thursday, February 19 with an exclusive Salute to Spain Dinner at the Biltmore Hotel in Coral Gables, featuring a distinguished guest to be announced at a later date. From there, other new events include:

--  Brunch at Miami Beach's iconic Joe's Stone Crab featuring magnums of
    champagne from Moet & Chandon, Veuve Clicquot and Dom Perignon.
--  A succulent seafood celebration at the Mandarin Oriental hotel brought
    to you by the islands of Turks and Caicos, accented by Kim Crawford wines.
--  Luxurious brunch set to sizzle at the Delano Hotel; featuring Dolce
    wines and hosted by Katie Lee Joel and Food Network's Chef Anne Burrell,
    the affair will be an elite opportunity to experience Dolce's "liquid gold"
    in one of Miami Beach's defining boutique hotels.
--  The 2009 dinner series also includes an Indian dinner hosted by Madhur
    Jaffrey, an all-organic dinner at Paradise Farms hosted by Michael
    Schwartz, and the Wolfsonian Mouton-Rothschild Dinner held in the presence
    of Baroness Philippine de Rothschild of Chateau Mouton-Rothschild.

Continuing the festival tradition of recognizing extraordinary leaders in the culinary industry, the 2009 Tribute Dinner will honor Mr. BAM himself, Emeril Lagasse. In a prestigious parade of talent at the Loews Miami Beach Hotel, a night emceed by none-other than Martha Stewart will feature dishes by Bobby Flay, Mario Batali, Charlie Trotter, Eric Ripert, Nobu Matsuhisa, and more as part of this very special night honoring Chef Lagasse's energy and pioneering-style.

Late Night Parties

In true South Beach fashion, the 2009 festival will also feature a selection of elite late-night soirees.

--  The fun begins with a party produced by MIAMI magazine and hosted by
    Tyler Florence, host of Food Network's "Tyler's Ultimate" and "Food 911."
--  The return of Harrah's Poker Party and Casino Night hosted by Food
    Network's Paula Deen.
--  A not-to-be missed late-night party sponsored by the spirits of
    Patron.
--  Stylish and creative, Sandra Lee -- star of Food Network's "Semi-
    Homemade with Sandra Lee" -- offers her own spin on the festivities by
    inviting everyone over for a good old-fashioned sunset pool party.
--  A perfect ending to the 2009 Food Network South Beach Wine & Food
    Festival will be the ultimate closing party hosted by Food Network's Bobby
    Flay and actress Stephanie March, complete with fabulous drinks and all
    manner of gourmet hors d'oeuvres and desserts.

Festival Classics

Festival classics will return with wine and culinary celebrities hosting dinners, tastings, wine seminars, interactive cooking lunches, and much more. The 2009 Wine Spectator Wine Seminar Series and the Bank of America Lifestyle Wine and Spirits Seminars will offer educational and entertaining tastings to satisfy the palettes of both novices and aficionados alike, expanding to take place at both the Miami Beach Convention Center and the Loews Miami Beach Hotel.

--  The Whole Foods Market Grand Tasting Village featuring the American
    Express Grand Tasting tents returns with America's best blend of tasting,
    superstar chefs and fun.
--  Celebrating its third year as part of the festival, Amstel Light's
    Burger Bash hosted by Rachael Ray serves as the perfect start to the entire
    line-up of the star-studded wine and culinary extravaganza.
--  Wine Spectator's Best of the Best sponsored by Bank of America will
    move into the illustrious new space of the Fontainebleau Miami Beach;
    utilizing over 25,000 square feet of newly renovated ballrooms and the
    outdoor terrace, highlighting a luxurious lounge presented by Cigar
    Aficionado.  The event will continue to showcase the talents of the world's
    greatest chefs; including David Chang, John Besh, John Fraser, and Patrick
    O'Connell, and winemakers from Jordan Vineyard & Winery, Joseph Phelps
    Vineyards and Schrader Cellars, among others.
--  The festival's perfect pairing of America's best barbeque and
    champagne will be back as the Perrier-Jouet BubbleQ hosted by Tom
    Colicchio, featuring the talent of Adam Perry Lang, Clay Conley, Jonathan
    Eismann, Rick Bayless, Chris Lilly, Marcus Samuelsson, and many more.

Fun and Fit as a Family

The festival's childhood obesity prevention initiative, Fun and Fit as a Family, is returning for its second year at Jungle Island, one of Miami's premiere theme parks. Fun and Fit as a Family brings together the best culinary, fitness, and health personalities and professionals straight into the backyard of the community. Bringing with them three-years of festival experience, Kellogg's will join Fun and Fit as a Family as host of Kidz Kitchen featuring star-studded culinary demonstrations with a healthy focus that are created exclusively for children and their parents. Obstacle courses, relay races, garden exploration, discovery centers, and featured culinary demonstrations in Kellogg's Kidz Kitchen make this interactive learning experience a must for the whole family. (www.funandfitasafamily.com)

Mark your calendar now -- tickets for the 2009 Food Network South Beach Wine & Food Festival go on sale Monday, October 27, 2008. For more information, visit www.sobewineandfoodfest.com or call 877-762-3933.

About the Food Network South Beach Wine & Food Festival

All proceeds of the festival benefit the students of the Florida International University School of Hospitality and Tourism Management who also assist festival organizers with sponsorship fulfillment, restaurant and exhibitor recruitment, logistics, and inventory, as well as working alongside some of the world's greatest celebrity chefs and winemakers. In addition to receiving a first-rate education in one of the country's most diversified hospitality and tourism markets, these students are provided the opportunity to work hands-on with some of the industry's most experienced leaders.

The Food Network South Beach Wine & Food Festival presented by Food & Wine is produced by Florida International University and Southern Wine & Spirits of Florida with the support of the Miami Beach Visitors & Convention Authority and the Miami-Dade County Department of Cultural Affairs. For more information about the festival, visit www.sobewineandfoodfest.com or call 877-762-3933. For more information about Florida International University visit www.fiu.edu, for the School of Hospitality and Tourism Management visit www.hospitality.fiu.edu and for more information about Southern Wine & Spirits visit www.southernwine.com.

PRESS CONTACTS:

National:
Robin Insley Associates
Robin Insley
(212) 849-8256
Robin@robininsleyassociates.com

Florida:
Brustman Carrino Public Relations
Larry Carrino
(305) 573-0658
Larry@brustmancarrinopr.com

Florida Int'l University
Lisa Palley
(305) 642-3132
Lpalley@bellsouth.net

SOURCE: Food Network South Beach Wine & Food Festival

mailto:Robin@robininsleyassociates.com
mailto:Larry@brustmancarrinopr.com
mailto:Lpalley@bellsouth.net