FOR IMMEDIATE RELEASE

             ANN TAYLOR ANNOUNCES DEFINITIVE AGREEMENT TO ACQUIRE
          CYGNE DESIGNS' INTEREST IN CAT SOURCING JOINT VENTURE
                       AND CYGNE'S ANN TAYLOR DIVISION

               New York, New York, June 10, 1996 -- AnnTaylor
          Stores Corporation (NYSE: ANN) and its wholly owned
          subsidiary, AnnTaylor, Inc., announced today that they
          have entered into a definitive agreement with Cygne
          Designs, Inc. ("Cygne") and its wholly owned subsidiary,
          Cygne Group (F.E.) Limited, regarding the Company's
          previously announced acquisition of Cygne's entire inter-
          est in the Company's direct sourcing joint venture with
          Cygne and the assets of what is known as the Ann Taylor
          Woven Division of Cygne, which is the division of Cygne 
          that is responsible for sourcing merchandise for Ann
          Taylor.  The joint venture, which is known as CAT U.S.,
          Inc. and C.A.T. (Far East) Limited (together, "CAT"),
          currently is 60% owned by Cygne and 40% owned by Ann
          Taylor.  In fiscal 1995, Ann Taylor purchased approxi-
          mately 38% of its merchandise through CAT and an addi-
          tional 16% of its merchandise directly from Cygne.

               The purchase price for Cygne's interest in CAT and
          the Ann Taylor Woven Division assets will consist of
          shares of Ann Taylor common stock having a market value
          of $36 million at the time of closing (provided that in
          no event will Ann Taylor be required to issue more than
          2.5 million shares), a cash payment in an amount equal to
          the tangible net book value of the fixed assets (but not
          to exceed $2,646,000) plus the tangible net book value of
          the inventory of the Ann Taylor Woven Division, less the
          amount of certain liabilities of the Division to be
          assumed by Ann Taylor.  The Company will also pay cash in
          respect of an obligation under an existing employment
          agreement with CAT.  

               Ann Taylor has received the consent of its lenders
          to the CAT/Cygne transaction and CAT has received a
          written commitment of HongKong and Shanghai Banking
          Corporation to the continuation of CAT's existing $40
          million credit facility. The closing of the CAT/Cygne
          transaction is subject to various other conditions,
          including (i) the approval of the transaction by Cygne's
          stockholders and (ii) the consent and release of liens by
          each of HongKong and Shanghai Banking Corporation and
          certain other lenders to Cygne.  It is currently antici-
          pated that the transaction will close in August 1996
          following approval by Cygne's stockholders.  There can be
          no assurance, however, that the conditions referred to
          above will be satisfied, that the transaction will be
          consummated or, if consummated, that it will be consum-
          mated within the currently anticipated time frame.

               As previously announced, Ann Taylor has agreed to
          register the shares to be issued to Cygne for resale,
          although Cygne will be subject to certain restrictions on
          the timing of sales and the amount of shares which can be
          sold at any one time.

               Ann Taylor is one of the country's leading women's
          specialty apparel retailers, operating 308 stores in 40
          states and the District of Columbia.

                                    * * *

          Contact:  Jocelyn Barandiaran      Gina Iaderosa
                    Investor Relations       Marketing/Public
                    212-541-3226             Relations
                                             212-541-3347