SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

Certain of our subsidiaries function as co-issuers (fully and unconditionally guaranteed on a joint and several basis) of the outstanding debt of The Jones Group Inc. ("Jones"), including Jones Apparel Group, USA, Inc. ("Jones USA"), Jones Apparel Group Holdings, Inc. ("Jones Holdings") and JAG Footwear, Accessories and Retail Corporation ("JAG Footwear").

The following condensed consolidating balance sheets, statements of operations, statements of consolidated comprehensive income and statements of cash flows for the "Issuers" (consisting of Jones and Jones USA, Jones Holdings, JAG Footwear, which are all our subsidiaries that act as co-issuers and co-obligors) and the "Others" (consisting of all of our other subsidiaries, excluding all obligor subsidiaries) have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. Separate financial statements and other disclosures concerning Jones are not presented as Jones has no independent operations or assets. There are no contractual restrictions on distributions from Jones USA, Jones Holdings or JAG Footwear to Jones.

Condensed Consolidating Balance Sheets

(In millions)

	April 6, 2013												December 31, 2012
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others		Elim- inations			Cons- olidated
ASSETS
Current assets:
Cash and cash equivalents	$	10.8		$	33.9		$	-		$	44.7		$	82.6		$	67.0	$	-		$	149.6
Accounts receivable		237.3			208.9			-			446.2			191.0			190.0		-			381.0
Inventories		284.9			214.4			(1.0	)		498.3			261.7			226.2		(1.2	)		486.7
Prepaid and refundable income taxes		8.8			0.6			(5.5	)		3.9			18.6			0.3		(13.4	)		5.5
Deferred taxes		23.3			12.9			-			36.2			17.9			15.3		-			33.2
Prepaid expenses and other current assets		25.6			22.8			(1.0	)		47.4			23.6			18.2		(1.1	)		40.7
Total current assets		590.7			493.5			(7.5	)		1,076.7			595.4			517.0		(15.7	)		1,096.7
Property, plant and equipment		59.1			206.5			-			265.6			64.6			213.5		-			278.1
Due from affiliates		-			393.8			(393.8	)		-			-			319.0		(319.0	)		-
Goodwill		49.9			162.6			-			212.5			49.9			165.4		-			215.3
Other intangibles		5.8			849.0			-			854.8			6.0			863.7		-			869.7
Deferred taxes		91.7			-			(91.7	)		-			93.0			-		(93.0	)		-
Investments in subsidiaries		1,805.3			41.8			(1,805.3	)		41.8			1,745.6			38.9		(1,745.6	)		38.9
Other assets		65.9			26.8			-			92.7			67.7			29.1		-			96.8
Total assets	$	2,668.4		$	2,174.0		$	(2,298.3	)	$	2,544.1		$	2,622.2		$	2,146.6	$	(2,173.3	)	$	2,595.5
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	$	64.5		$	-		$	-		$	64.5		$	-		$	-	$	-		$	-
Current portion of long-term debt and capital lease obligations		-			2.2			-			2.2			-			2.2		-			2.2
Current portion of acquisition consideration payable		20.8			-			-			20.8			30.3			-		-			30.3
Accounts payable		124.3			83.9			-			208.2			156.2			101.3		-			257.5
Income taxes payable		10.7			15.0			(25.7	)		-			22.1			12.9		(33.6	)		1.4
Accrued expenses and other current liabilities		65.0			63.6			(1.0	)		127.6			79.1			82.8		(1.1	)		160.8
Total current liabilities		285.3			164.7			(26.7	)		423.3			287.7			199.2		(34.7	)		452.2
Long-term debt		932.0			-			-			932.0			934.4			-		-			934.4
Obligations under capital leases		-			20.7			-			20.7			-			21.3		-			21.3
Income taxes payable		0.5			-			-			0.5			0.5			-		-			0.5
Deferred taxes		-			159.3			(97.7	)		61.6			-			155.7		(99.0	)		56.7
Acquisition consideration payable		3.2			-			-			3.2			6.0			-		-			6.0
Due to affiliates		393.8			-			(393.8	)		-			319.0			-		(319.0	)		-
Other		89.5			24.0			-			113.5			93.1			25.0		-			118.1
Total liabilities		1,704.3			368.7			(518.2	)		1,554.8			1,640.7			401.2		(452.7	)		1,589.2
Redeemable noncontrolling interest		-			0.6			-			0.6			-			0.6		-			0.6
Equity:
Common stock and additional paid-in capital		522.1			929.7			(929.7	)		522.1			521.6			948.0		(948.0	)		521.6
Retained earnings		468.8			879.9			(856.4	)		492.3			477.8			793.1		(769.8	)		501.1
Accumulated other comprehensive (loss) income		(26.8	)		(6.0	)		6.0			(26.8	)		(17.9	)		2.8		(2.8	)		(17.9	)
Total Jones stockholders' equity		964.1			1,803.6			(1,780.1	)		987.6			981.5			1,743.9		(1,720.6	)		1,004.8
Noncontrolling interests		-			1.1			-			1.1			-			0.9		-			0.9
Total equity		964.1			1,804.7			(1,780.1	)		988.7			981.5			1,744.8		(1,720.6	)		1,005.7
Total liabilities and equity	$	2,668.4		$	2,174.0		$	(2,298.3	)	$	2,544.1		$	2,622.2		$	2,146.6	$	(2,173.3	)	$	2,595.5

Condensed Consolidating Statements of Operations

(In millions)

	Fiscal Quarter Ended April 6, 2013										Fiscal Quarter Ended March 31, 2012
	Issuers			Others		Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	577.8		$	424.8	$	(5.0	)	$	997.6	$	570.6		$	359.6		$	(6.8	)	$	923.4
Licensing income		0.1			10.7		-			10.8		-			12.3			-			12.3
Other revenues		0.3			-		-			0.3		0.3			-			-			0.3
Total revenues		578.2			435.5		(5.0	)		1,008.7		570.9			371.9			(6.8	)		936.0
Cost of goods sold		389.6			273.7		(3.0	)		660.3		377.3			218.9			(3.7	)		592.5
Gross profit		188.6			161.8		(2.0	)		348.4		193.6			153.0			(3.1	)		343.5
Selling, general and administrative expenses		227.6			106.2		(2.3	)		331.5		206.7			98.8			(2.2	)		303.3
Operating (loss) income		(39.0	)		55.6		0.3			16.9		(13.1	)		54.2			(0.9	)		40.2
Net interest expense (income) and financing costs		14.8			1.3		-			16.1		43.2			(0.5	)		-			42.7
Equity in income of unconsolidated affiliate		-			0.6		-			0.6		-			0.9			-			0.9
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(53.8	)		54.9		0.3			1.4		(56.3	)		55.6			(0.9	)		(1.6	)
(Benefit) provision for income taxes		(20.2	)		20.6		0.1			0.5		(15.9	)		15.7			(0.4	)		(0.6	)
Equity in earnings of subsidiaries		33.9			-		(33.9	)		-		39.9			-			(39.9	)		-
Net income (loss)		0.3			34.3		(33.7	)		0.9		(0.5	)		39.9			(40.4	)		(1.0	)
Less: income attributable to noncontrolling interest		-			0.4		-			0.4		-			0.2			-			0.2
Income (loss) attributable to Jones	$	0.3		$	33.9	$	(33.7	)	$	0.5	$	(0.5	)	$	39.7		$	(40.4	)	$	(1.2	)

Condensed Consolidating Statements of Other Comprehensive (Loss) Income

(In millions)

	Fiscal Quarter Ended April 6, 2013												Fiscal Quarter Ended March 31, 2012
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net (loss) income	$	0.3		$	34.3		$	(33.7	)	$	0.9		$	(0.5	)	$	39.9		$	(40.4	)	$	(1.0	)
Other comprehensive (loss) income:
Pension and postretirement liability adjustments, net of tax		0.2			-			-			0.2			-			-			-			-
Change in fair value of cash flow hedges, net of tax		0.2			0.2			(0.2	)		0.2			(0.1	)		(0.1	)		0.1			(0.1	)
Reclassification adjustment for hedge gains and losses included in net income, net of tax		(0.1	)		(0.1	)		0.1			(0.1	)		-			-			-			-
Foreign currency translation adjustments		(9.2	)		(9.2	)		9.2			(9.2	)		9.4			9.4			(9.4	)		9.4
Total other comprehensive (loss) income		(8.9	)		(9.1	)		9.1			(8.9	)		9.3			9.3			(9.3	)		9.3
Comprehensive (loss) income	$	(8.6	)	$	25.2		$	(24.6	)	$	(8.0	)	$	8.8		$	49.2		$	(49.7	)	$	8.3

Condensed Consolidating Statements of Cash Flows

(In millions)

	Fiscal Quarter Ended April 6, 2013											Fiscal Quarter Ended March 31, 2012
	Issuers			Others			Elim- inations		Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net cash (used in) provided by operating activities	$	(116.7	)	$	(20.0	)	$	-	$	(136.7	)	$	(67.9	)	$	10.9		$	(2.8	)	$	(59.8	)
Cash flows from investing activities:
Capital expenditures		(3.9	)		(12.4	)		-		(16.3	)		(3.9	)		(14.3	)		-			(18.2	)
Other		(0.2	)		-			-		(0.2	)		-			(0.2	)		-			(0.2	)
Net cash used in investing activities		(4.1	)		(12.4	)		-		(16.5	)		(3.9	)		(14.5	)		-			(18.4	)
Cash flows from financing activities:
Net increase in short-term borrowings		64.5			-			-		64.5			-			-			-			-
Dividends paid		(4.0	)		-			-		(4.0	)		(4.0	)		(2.8	)		2.8			(4.0	)
Repurchase of common shares		(9.0	)		-			-		(9.0	)		(8.9	)		-			-			(8.9	)
Payments of acquisition consideration payable		(2.5	)		-			-		(2.5	)		-			(2.0	)		-			(2.0	)
Other items, net		-			(0.7	)		-		(0.7	)		2.1			(0.6	)		-			1.5
Net cash provided by (used in) financing activities		49.0			(0.7	)		-		48.3			(10.8	)		(5.4	)		2.8			(13.4	)
Effect of exchange rates on cash		-			-			-		-			-			(0.1	)		-			(0.1	)
Net decrease in cash and cash equivalents		(71.8	)		(33.1	)		-		(104.9	)		(82.6	)		(9.1	)		-			(91.7	)
Cash and cash equivalents, beginning		82.6			67.0			-		149.6			195.8			43.0			-			238.8
Cash and cash equivalents, ending	$	10.8		$	33.9		$	-	$	44.7		$	113.2		$	33.9		$	-		$	147.1