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Innovo Group Inc. (the "Company") (NASDAQ: INNO) announced today that it has signed a license agreement with TheBetesh Group, in association with its Generation Company division, toproduce and sell handbags and small leather goods, including belts andwallets, for men and women under the Joe's庐 brand. This license willbecome effective upon approval by the Company's shareholders of the mergerannounced today by the Company to acquire all right, title and interest inand to the Joe's庐 and Joe's Jeans(TM) brand and related marks from JDHoldings, Inc.

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Marc Crossman, President and CEO of the Company, commented, "We areextremely excited to announce this partnership with The Betesh Group toproduce handbags and small leather goods under the Joe's庐 brand. We havebeen working in advance with The Betesh Group to prepare our first showingof handbags at The Coterie Show in New York beginning this month onFebruary 20. We look forward to working with The Betesh Group to createwhat we believe will be the finest quality products for our customers."

Said Elliot Betesh, President of The Betesh Group, "The Betesh Group isthrilled to partner with Innovo Group. We look forward to capturing theessence of Joe's Jeans and translating that into a successful line ofunique, fashion forward accessories."

Crossman further commented, "This license agreement represents the firststep toward generating additional revenue streams for our Joe's Jeansbusiness. We believe that our trademark JD庐 logo translates very wellonto handbag and small leather good products, as well as other categories,which we believe will greatly complement our denim offerings. As we moveforward to consummate the acquisition of the Joe's庐 and Joe's Jeans(TM)marks we plan to expand our brand awareness by seeking other licensingopportunities that will complement our overall strategy to grow the brandworldwide."

About Innovo Group Inc.

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Innovo Group Inc., through its operating subsidiary Joe's Jeans, Inc., is adesign and sales organization designing, producing and selling apparelproducts to the retail and premium markets under the Joe's(TM) and Joe'sJeans庐 brands. Under these brands, the Company's apparel products consistof men's and women's denim and denim-related apparel products. Moreinformation is available at the company web site at orat .

About The Betesh Group

The Betesh Group, in business for more than 35 years, is a family ownedglobal consumer products organization with six distinct and growingcompanies. Since its inception, the dynamic entity has grown to a stellar$250 million business which includes: Mitzi International (Ladies Handbagsand Accessories), Generation Company (Backpacks, Sports and Travel RelatedAccessories and Upscale Ladies' Accessories), Motion Systems (Computer,Audio and Video Accessories), Baby Boom (Diaper Bags, Infant Bedding andRoom D茅cor), Bananafish (Upscale Infant Bedding and Room D茅cor) andFunhouse (Toddler Bedding and Toddler/Tween/Teen Furniture and Room D茅cor).Headquartered in New York, The Betesh Group operates eleven offices in fourcountries with over 800 employees worldwide.

The Betesh Group's portfolio of distinguished accessories licenses includesBaby Phat, Eddie Bauer and Southpole. The company also owns the acclaimedhandbag line Sloane & Alex, designed by Carlos Falchi.

Statements in this news release which are not purely historical facts areforward-looking statements, including statements containing the words"intend," "believe," "estimate, "project," "expect" or similar expressions.Fo
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