AMENDMENT TO THE ASSET PURCHASE AGREEMENT BY AND AMONG
           SIGNAL APPAREL COMPANY, INC., TAHITI APPAREL, INC. AND THE
       STOCKHOLDERS OF TAHITI APPAREL, INC., DATED AS OF DECEMBER 18, 1998


     In the event of any conflict  between this  Amendment and the provisions of
the Asset  Purchase  Agreement  (the  "Agreement"),  to which this  Amendment is
annexed,  the  provisions  of this  Amendment  shall be deemed to  control.  Any
reference to "the Agreement" or "this  Agreement" shall be deemed to include the
provisions set forth in this Amendment.

     1. Section  2.01 of the  Agreement,  relating to the purchase  price of the
Assets, is hereby amemded as follows:  For purposes of determining the number of
shares of Buyer Common Stock  issuable to the Company  under Section 2.04 of the
Agreement,  it is agreed  that each share of Buyer  Common  Stock has a value of
$1.18750  and the  number of  shares of Buyer  Common  Stock  issuable  shall be
determined by dividing the Purchase Price by $1.18750.

     2. Unless  otherwise  defined herein,  capitalized  terms used herein shall
have the meanings given them in the Agreement.

     IN WITNESS WHEREOF,  the undersigned have executed this Amendment as of the
16th day of March, 1999.


                                        SIGNAL APPAREL COMPANY, INC.


                                        By:  /s/ Thomas A. McFall
                                             ----------------------------------
                                             Name:  Thomas A. McFall
                                             Title: CEO



                                        TAHITI APPAREL, INC.


                                        By:  /s/ Zvi Ben-Haim
                                             ----------------------------------
                                             Name:  Zvi Ben-Haim
                                             Title: President


                                             /s/ Zvi Ben-Haim
                                             ----------------------------------
                                             Zvi Ben-Haim


                                             /s/ Michael Harary
                                             ----------------------------------
                                             Michael Harary