Liz Claiborne, Inc. (the “Company”) (NYSE:
LIZ) today announced it has completed its previously announced offering of
$90 million principal amount of its 6% convertible senior notes
due 2014 (the “notes”), which includes the exercise in full of the initial
purchasers’ option to purchase additional notes on the same terms and
conditions. The Company received total net proceeds from the offering of
approximately $86.6 million, after deducting fees and offering
expenses payable by the Company.

The notes are unsecured, senior obligations of the Company, will pay interest
semi-annually at a rate of 6% per annum and will mature on June 15,
2014. The conversion rate will initially be 279.6421 shares of the
Company’s common stock per $1,000 principal amount of notes
(equivalent to an initial conversion price of approximately
$3.576 per share of common stock), subject to adjustment in
certain circumstances. The initial conversion price represents a conversion
premium of 20% over the last reported sale price of the Company’s common stock
on June 18, 2009 of $2.98 per share. Holders of
the notes may convert their notes at their option under certain circumstances.
Upon conversion, the Company will deliver cash, shares of the Company’s common
stock, or a combination of cash and shares, at the option of the Company.
Holders of the notes may require the Company to repurchase for cash all or some
of their notes upon the occurrence of a fundamental change (as defined). The
conversion rate will be subject to a “conversion rate cap” in accordance with
the rules of the NYSE.

The Company used the net proceeds from the offering (including proceeds from
the initial purchasers’ exercise of the over-allotment option) to temporarily
pay down a portion of the outstanding borrowings under its amended credit
facility.

The notes were offered in the United States to qualified
institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”). The notes have not been registered under the
Securities Act and may not be offered or sold in the United
States without registration or an applicable exemption from the
registration requirements.

This press release does not constitute an offer to sell or the solicitation
of an offer to buy the notes or any other securities, nor will there be any sale
of notes or any other securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or jurisdiction.