CONTACT:             James Fingeroth
                     Michael Freitag
                     Kekst and Company
                     (212) 593-2655


                              FOR IMMEDIATE RELEASE


                       LESLIE FAY EMERGES FROM CHAPTER 11

            -- LESLIE FAY AND SASSCO ARE NOW TWO SEPARATE COMPANIES;
             SASSCO IS EXPECTED TO BE RENAMED KASPER A.S.L., LTD. --


NEW YORK, NEW YORK, JUNE 4, 1997 -- The Leslie Fay Companies, Inc. today emerged
from bankruptcy  following a successful  reorganization  of its businesses.  The
company's plan of reorganization became effective today (June 4, 1997) at 5 P.M.
EST.

Under the plan of  reorganization,  which was  confirmed by the U.S.  Bankruptcy
Court for the Southern  District of New York on April 21,  1997,  Leslie Fay has
been separated into two new companies -- The Leslie Fay Company, Inc. and Kasper
A.S.L.,  Ltd. -- each of which will issue new equity in the near future.  Equity
in The Leslie Fay Companies, Inc. has been extinguished.


THE LESLIE FAY COMPANY, INC.

The Leslie Fay Company,  Inc.  manufactures  and markets  Leslie Fay dresses and
sportswear.  The  company  also owns the Leslie  Fay,  Outlander,  and HUE brand
names, as well as other brand names and trademarks.  The company's  revenues are
expected to exceed $125 million during the current fiscal year.

The new Leslie Fay will  distribute 3.4 million shares of equity to creditors as
soon as practicable.  This equity will initially trade  over-the-counter  in the
"pink sheets." The company  intends to seek a stock exchange  listing at a later
date.

The senior  management  of Leslie Fay includes John J.  Pomerantz,  Chairman and
Chief Executive  Officer;  John Ward,  President;  Warren  Wishart,  Senior Vice
President  and  Chief  Financial  Officer;  Dominick  Fellicetti,   Senior  Vice
President,  Manufacturing and Worldwide Sourcing;  and Catherine Bandel,  Senior
Vice President, Sportswear.

Leslie Fay's  corporate  offices are located at 1412  Broadway in New York City,
with  administrative  offices and  distribution  facilities in the  Wilkes-Barre
region of Pennsylvania.  The company has a $30 million revolving credit facility
from the CIT Group/Commercial Services.







                                        2


KASPER A.S.L., LTD.

The former  Sassco  Fashions  division  of The Leslie Fay  Companies,  Inc.,  is
expected  to  be  renamed  Kasper  A.S.L.,  Ltd.  in  the  near  future.  Kasper
manufactures  and markets  suits and dresses under the labels Kasper for A.S.L.,
LeSuit,  b. bennett,  and Albert Nipon;  Kasper & Company  sportswear;  and Nina
Charles  knitwear.  Kasper's revenues are expected to exceed $300 million during
the current fiscal year.

Kasper will issue notes and  distribute  6.8 million shares to creditors as soon
as is practicable. The equity will initially trade over the counter in the "pink
sheets." Kasper intends to seek a stock exchange listing at a later date.

The senior  management of Kasper includes  Arthur S. Levine,  Chairman and Chief
Executive  Officer;  Gregg I.  Marks,  President;  Lester  E.  Schreiber,  Chief
Operating Officer;  Dennis P. Kelly,  Chief Financial Officer;  Barbara Bennett,
Executive Vice President;  Leonard Feinberg, Vice President and President,  Nina
Charles Knitwear  Division;  and Peter Eng, Vice President,  Textiles.  Kasper's
corporate  offices are currently located at 1400 Broadway in New York City, with
administrative offices and distribution  facilities in Secaucus, New Jersey. The
company has a $100 million revolving credit facility from a lending group led by
BankBoston.

Arthur S. Levine,  Chairman and CEO of Kasper,  said:  "I have no doubt that the
newly independent  Kasper company is  well-positioned to maintain its prominence
in the women's suit and career markets. I wish John Pomerantz and his associates
well with the new Leslie Fay company."

Gregg R. Marks,  President of Kasper, added: "As we go forward as an independent
entity,  we look forward to expanding into new areas to increase our presence in
the apparel industry."

John Pomerantz, Chairman and CEO of Leslie Fay, said: "We are delighted that the
reorganization  of Leslie Fay has now been  completed.  As we enter Leslie Fay's
50th year,  the energy and  creativity of our people are  outstanding -- and our
customers  are  responding  enthusiastically.  We look forward to launching  new
merchandise  lines and  implementing  other  initiatives  aimed at continuing to
build our core dress and sportswear businesses.

"I know I speak for the entire Leslie Fay management team when I say that we are
very grateful to all of our employees, customers and suppliers who supported the
company during this  difficult  period.  We are eager to demonstrate  that their
confidence  in our future was  deserved and that Leslie Fay is ready and willing
to resume its leadership  role in the women's apparel  business.  We also extend
our best  wishes  to our  colleagues  at  Kasper  as they  embark  on their  new
venture."