DELTA GALIL INDUSTRIES (OTC:DELTY)

First Quarter 2013 Results

• Sales reached $227.3 million in the 2013 first quarter, up 35% from the same period of 2012.
• Diluted earnings per share attributed to shareholders rose to $0.26 for the 2013 first quarter, a 63% increase from $0.16 a year ago.

Isaac Dabah, CEO of Delta Galil, stated: “The Company began 2013 on an extremely strong footing, delivering the highest first quarter sales in our history. Our top-line performance benefitted from organic growth mainly in the North American and the Israeli markets, as well as from the Schiesser acquisition. Based on our excellent first quarter results, we expect that sales, EBIT, net income and EPS for 2013 will be at the higher end of the forecast ranges. At the same time, we will continue to invest in product innovation, expanding our successful Schiesser acquisition and enhancing our capacity for continued profitable growth.”

Fourth Quarter 2012 Results

• Sales reached $246.6 million in the 2012 fourth quarter, up 40% from the same period of 2011.
• Diluted earnings per share attributed to shareholders, excluding capital gains and non-recurring items, was $0.55 for the 2012 fourth quarter and $1.37 for the full year, up from $0.36 and $1.15, respectively, for the 2011 periods.

Isaac Dabah, CEO of Delta Galil, stated: “In 2012 we delivered exceptional top-line and bottom-line performance and made great strides in executing Delta Galil’s long-term strategies to transform the Company into a leading, diversified global competitor in branded and private label intimate apparel. We increased our branded business and our European footprint through the Schiesser acquisition, further penetrated the U.S. mass market channel, and expanded our socks category and U.S. kids business, through our recent acquisition of Little Miss Matched.

“Our outlook for 2013 calls for Delta Galil to approach $1 billion in sales, accompanied by further growth in profitability. We plan to get there through continued organic growth in areas such as in Delta USA, Socks business and Delta Israel retail operations. We have increased our guidance to 2013 from $55-$60 million EBIT to $57-$62 million.”