Rapper/mogul Shawn "Jay-Z" Carter has entered into
a deal to sell clothing company Rocawear for $204 million in cash to the Iconix
Brand Group, a company that licenses and markets such popular brands as Candies,
Joe Boxer, Mudd, London Fog, Ocean Pacific and others.

The deal, which was announced yesterday, (Mar. 6) could also net Jay-Z $35
million in Iconix stock, if the Rocawear brand meets certain performance requirements
over the next three-five years. "Iconix is pioneering a new brand management
model and by combining Rocawear with their platform, my team and I can focus
on our strengths in design and lifestyle marketing." Jay-Z said. "I’m
also looking forward to working with Neil Cole and the Iconix organization on
other brand development opportunities."

Jay-Z will continue to be in charge of all product development, marketing and
licensing for Rocawear, which boasts annual retail sales of over $700 million.
The rapper will retain his stake in the operating company the manufactures all
of the Rocawear men’s apparel line, and the mogul’s two partners, Alex Bize
and Norton Cher, will continue to run the manufacturing company.

"This is the largest acquisition Iconix has made and Rocawear is a brand
that is increasing in market share and has extraordinary potential for growth,"
said Neil Cole, Chairman and CEO of Iconix Brand Group commented. "The
leadership team is already in place to fulfill our mission and we will maintain
complete continuity within the business by having Jay and his team in charge
of all product development, licensing and marketing. Jay and his partners in
the operating company that manufactures all of the Rocawear men’s apparel, Alex
Bize and Norton Cher, will become our licensee for the core business. Iconix
will add talent and resources that I believe will help make Rocawear a billion
dollar global brand. This acquisition will be transformative for Iconix in terms
of its scale, the diversification it brings to our portfolio of brands as well
as having someone as talented as Jay-Z joining our company and the many synergies
that could bring."

Iconix is forecasting that Rocawear, which was founded in 1995, will generate
almost $43 million in royalty revenue during the first 12 months of the agreement.
Iconix and Jay-Z have also reached a deal to form a new brand management/licensing
company that will debut a new luxury brand titled The Shawn Carter Collection,
which is due in stores in 2008. The deal is expected to close this month.