Exhibit 99.1

FOR IMMEDIATE RELEASE
---------------------
October 2, 2003


            GEAR FOR SPORTS MANAGEMENT COMPLETES PURCHASE OF COMPANY

          BUY OUT RESULTS IN LOCAL MANAGEMENT OWNING 90% OF THE COMPANY


LENEXA,  KANSAS:  GFSI Holdings,  Inc. (Holdings) the parent company of Gear for
Sports  (GFSI,  Inc.)  announced  today that it has issued  shares of its common
stock and shares of its  preferred  stock in exchange for $30 million  (maturity
value) of its 11.375% Senior  Discount Notes (Notes).  The shares were issued to
the local  management  group of GFSI,  Inc. who had purchased the Notes directly
from the noteholders. As a result of the exchange the local management group now
owns 90% of Holdings.

In a related  transaction GFSI, Inc. also purchased $30 million (maturity value)
of the  Notes.  Combined  with  management's  acquisition  of the  Notes the two
transactions  resulted in $60 million of the Notes being  purchased  by Holdings
and GFSI, Inc., leaving $24 million (maturity value) in the hands of third party
noteholders.

Larry  Graveel,  President  and Chief  Operating  Officer of GFSI,  Inc. led the
management buy out. Mr. Graveel  stated "This is a great  transaction  for GFSI.
Inc. and Holdings and its bondholders. We were able to significantly improve our
capital  structure  and  provide a solid  base for our  efforts  to  expand  our
businesses.  We have been actively pursuing growth  initiatives  during the past
three years and this  recapitalization is an extension of those activities.  The
management  team is very  excited  about  our  future  prospects."  Neither  the
purchase  price  of  the  Notes  nor  the  make  up  of  the  management   group
participating in the buy out were disclosed.

Gear for  Sports  is a  leading  designer,  manufacturer  and  marketer  of high
quality,  custom  designed  sportswear and active wear bearing names,  logos and
insignia of resorts, corporations,  colleges and professional sports leagues and
teams. Gear for Sports is the exclusive licensee for Champion(TM) sportswear for
colleges and universities, resorts and the military.


FOR MORE INFORMATION, CONTACT
Craig Peterson, CFO