FOR IMMEDIATE RELEASE                             EXHIBIT 2

                ANN TAYLOR ANNOUNCES AMENDMENT TO ACQUISITION
                         AGREEMENT WITH CYGNE DESIGNS

               NEW YORK, NEW YORK, August 28, 1996 -- AnnTaylor
          Stores Corporation (NYSE: ANN) and its wholly owned
          subsidiary AnnTaylor, Inc. announced today that they
          amended their previously announced agreement with Cygne
          Designs, Inc. ("Cygne") and its wholly owned subsidiary
          Cygne Group (F.E.) Limited, regarding the Company's
          acquisition of Cygne's entire interest in Ann Taylor's
          direct sourcing joint venture with Cygne known as CAT,
          and the assets of what is known as the Ann Taylor Woven
          Division of Cygne, the division of Cygne that is
          responsible for sourcing merchandise for Ann Taylor.

               As previously announced, a portion of the purchase
          price for Cygne's interest in CAT and the Ann Taylor
          Woven Division assets consists of shares of Ann Taylor
          Common Stock having an aggregate value of $36 million at
          the time of closing, provided that in no event is the
          Company required to issue more than 2.5 million shares.
          Under the amended terms announced today, if at the time
          of closing the aggregate value of 2.5 million shares of
          the Company's common stock is less than $32.5 million,
          Cygne will receive shares of the Company's common stock
          having an aggregate value of $32.5 million, provided that
          in no event will the Company be required to issue more
          than 3 million shares.  At Ann Taylor's option, it may
          deliver cash in lieu of some or all of any shares
          issuable in excess of 2.5 million shares.

               Ann Taylor and Cygne also amended the agreement to
          provide, among other things, that Cygne may terminate the
          agreement if the aggregate value of the Company's common
          stock to be issued at closing, including any additional
          shares issuable or additional cash payable under the
          amendment, is less than $32.5 million, and that either
          party may terminate the agreement if the closing has not
          occurred by September 30, 1996.

               It is currently anticipated that the transaction
          will close in September 1996 following approval by
          Cygne's stockholders at its annual stockholders meeting.
          There can be no assurance, however, that the transaction
          will be consummated or, if consummated, that it will be
          consummated within the currently anticipated time frame.

               Ann Taylor is one of the country's leading women's
          specialty retailers, operating 306 stores in 40 states
          and the District of Columbia.

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