EXHIBIT 1


                             [JOSEPHINE CHAUS LOGO]


Contact:    Bart Heminover                      Molly Morse
            Chief Financial Officer             Kekst and Company
            (201) 863-4646                      (212) 521-4800



                                                           FOR IMMEDIATE RELEASE

         BERNARD CHAUS, INC. EXPANDS INTO YOUNG CONTEMPORARY SPORTSWEAR
                       THROUGH CYNTHIA STEFFE ACQUISITION

  ACQUISITION PROVIDES CHAUS WITH EXPOSURE TO HIGHLY ATTRACTIVE CONSUMER GROUP

NEW YORK, NY, JANUARY 2, 2004 - Bernard Chaus, Inc. (OTC Bulletin Board:
CHBD.OB) today announced that it has acquired from LF Brands (formerly known as
The Leslie Fay Company) certain assets of its Cynthia Steffe division, which
designs, sources and markets women's young contemporary sportswear. Terms of the
transaction were not disclosed.

Founded in 1989, the Cynthia Steffe business produces high quality young
contemporary and designer sportswear, which is sold in upscale department and
specialty stores including Saks Fifth Avenue and Neiman Marcus. Cynthia Steffe,
Designer and Chairperson, and her husband Richard Roberts, President, of the
Cynthia Steffe division of LF Brands, have agreed to join the Company's newly
formed Cynthia Steffe division and will continue in their former roles. The
Company will maintain the Cynthia Steffe showroom at 550 Seventh Avenue in New
York City.

Josephine Chaus, Chairwoman and Chief Executive Officer, said, "We are delighted
to welcome the distinguished Cynthia Steffe brand and the highly talented team
behind it to our Company. The acquisition of this contemporary sportswear
business, which has developed a devoted following among fashion-oriented, young
women, provides Chaus with exposure to a new and highly attractive customer base
and consumer group and an additional source of sales and earnings that we
believe will allow us to drive long-term growth."

Ms. Steffe said, "I have long admired Chaus, which has earned a very strong
reputation in the apparel industry, and its respected and experienced management
team. I am excited by the opportunities that lie ahead for Cynthia Steffe as
part of Chaus to further build our business and expand our product line."

Nick DiPaolo, Vice Chairman and Chief Operating Officer of Chaus, added, "We
look forward to working with Rick and Cynthia to enhance the Cynthia Steffe
brand and to take best advantage








of our shared capabilities. We believe we are well positioned for a bright and
profitable future together."

Bernard Chaus, Inc., designs, sources and markets an extensive range of women's
career and casual sportswear, principally under the Josephine Chaus Collection,
Josephine Chaus Studio, and Josephine Chaus Sport trademarks. The Company's
products are sold nationwide through department store chains, specialty
retailers and other outlets. Further information can be found at
www.BernardChaus.com.

This press release contains forward-looking statements that are based upon
current expectations and involve a number of uncertainties, including retail
market conditions, consumer acceptance of the Cynthia Steffe brand products, and
the ability to maintain and grow the Cynthia Steffe brand and to achieve
anticipated profit margins on the Cynthia Steffe products. Further information
on potential factors which could affect the Company's financial results are
included in the Company's Form 10-K for the year ended June 30, 2003.



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