EVERLAST WORLDWIDE SIGNS EXCLUSIVE DIRECT-TO-RETAIL LICENSE WITH SEARS HOLDINGS TO BE DISTRIBUTED AT SEARS AND KMART IN FALL 2011

100-YEAR-OLD FIGHT SPORTS & FITNESS BRAND SIGNS EXCLUSIVE APPAREL, FOOTWEAR AND ACCESSORY LICENSE

New York, N.Y. – December 16, 2010 – EVERLAST WORLDWIDE INC. (EVERLAST), the global fight sports and fitness brand, today announced the signing of a long-term direct-to-retail licensing deal with Sears Holdings, the nation’s fourth largest broadline retailer.

EVERLAST has given Sears Holdings the U.S. license for the EVERLAST brand in their 850 Sears doors and the EVERLAST SPORT brand in 1,325 Kmart doors as well as launching on sears.com and kmart.com. The long-term agreement gives Sears and Kmart the rights to the EVERLAST brand for apparel, footwear and accessories for men, women and kids. Sears and Kmart plan to launch the brand nationwide beginning in the spring of 2011.

“As we continue to celebrate our 100-year anniversary, we could not be any more proud to announce this landmark agreement for the EVERLAST brand with Sears and Kmart. The brand will have unprecedented retail distribution and marketing in the apparel, footwear and accessories categories,” said Neil Morton, CEO of Everlast. “We believe the authenticity and individuality of this global brand will resonate with loyal Sears and Kmart customers who demand quality products and iconic brands.”

The EVERLAST and EVERLAST SPORT brand launches, in Sears and Kmart respectively, will be supported by national advertising, public relations, social media, and sports marketing campaigns starting in 2011.

“We are pleased to be working with a global, iconic fitness brand like EVERLAST,” said John Goodman, EVP for Apparel and Home at Sears Holdings. “With this agreement, we will add an authentic fitness brand to our Sears and Kmart stores, offering quality apparel and footwear to our customers from a brand they know and trust. We are committed to providing our customers the best brands at a great value, and our agreement with EVERLAST allows us to bring them one of the premier authentic athletic brands on the market today.”

EVERLAST wholesale and licensed boxing, MMA and fitness equipment will continue to be sold through sporting goods and sports specialty retailers across the country and will remain dedicated to being a market leader in the fight sports retail space.