FOR IMMEDIATE RELEASE
Contact:
Cameron Associates, Inc.                                Tag-It Pacific, Inc.
Michael Brod                                            Colin Dyne, CEO
212-245-8800                                            818-444-4100
MICHAEL@CAMERONASSOC.COM                                CDYNE@TAGITPACIFIC.COM


             COATS PLC INVESTS $3.0 MILLION IN TAG-IT PACIFIC, INC.
                COATS AND TAG-IT ENTER INTO AN EXCLUSIVE TEN YEAR
                        CO-MARKETING AND SUPPLY AGREEMENT


Woodland Hills, Ca. October 2, 2001--Tag-It Pacific, Inc. (AMEX: TAG) is pleased
to announce that Coats, plc, the world's largest thread manufacturer, has
invested $3 million in Tag-it Pacific. The two companies have also entered an
exclusive ten year co-marketing and supply agreement.

"The Coats investment is a testament to the strength of our business model and
will add to our ability to attract quality partners and customers," said Colin
Dyne, CEO of Tag-it Pacific. "I believe that this relationship will give us
access to a wide range of new customers assisting in the execution of our
Company's growth and business plans. The co-marketing and supply agreement
provides for selected introductions into Coats' customer base and has the
potential to rapidly accelerate our growth plans and to introduce our MANAGED
TRIM SOLUTION to apparel manufacturers on a broader basis."

Under the agreement, Tag-it trim packages will exclusively offer Coats thread.
Coats was selected for its quality, service, brand recognition and global reach.
"The Coats brand name is valued throughout the world and adds considerable
credibility to our product offerings," said Dyne.

Prior to the exclusive agreement, Tag-it was a longtime customer of Coats,
distributing its thread to sewing operations. "The Tag-it relationship allows
Coats to increase market share," said Coats North America Chief Executive Steven
E. Baune, Charlotte, N.C. "It also permits Coats to offer contractors in Mexico,
Central America and the Caribbean full-service trim management."

As the demand for full-service, outsourced trim management grows, Coats' sewing
contractors now have easy access to Tag-it's expertise. Tag-it's Internet-based
MANAGED TRIM SOLUTION software facilitates quick, low-cost trim management. "By
offering customers the trim management option," said Baune, "we will help them
reduce overhead and obtain highly competitive trim pricing."

ABOUT TAG-IT PACIFIC: Tag-It specializes in the distribution of a full range of
trim items to manufacturers of fashion apparel, licensed consumer products,
specialty retailers and mass merchandiser brands. Tag-It acts as a full service
outsourced trim management department for manufacturers of fashion apparel such
as Tarrant Apparel Group and Azteca Production International. The Company also
serves as a specified supplier of trim items to specific brands, brand licensees
and retailers, including Tommy Hilfiger, A/X Armani Exchange, Express, The
Limited, Lerner and Swank, among others. Tag-It has positioned itself as a fully
integrated single-source supplier of a full range of trim items for
manufacturers of fashion apparel. The Company's business focuses on servicing
all of the trim requirements of its customers at the manufacturing and retail
brand level of the fashion apparel industry. Tag-It offers customers its MANAGED
TRIM SOLUTION, an Internet-based, virtual trim department, covering the complete
management of ordering, production, inventory management and just-in-time
distribution of their trim and packaging requirements.

Visit the Company's website, WWW.TAGITPACIFIC.COM for additional information.

ABOUT COATS: London-based Coats plc is the world's largest manufacturer of
industrial thread and textile-related craft products. Coats has operations in 65
countries and a North American presence in the U.S., Canada, Mexico, Central
America and the Caribbean.

Visit the Coats' website, WWW.COATS.COM for additional information.





WITH THE EXCEPTION OF HISTORICAL INFORMATION, THE MATTERS DISCUSSED ABOVE MAY
INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES ACT OF
1934, AS AMENDED. ALL SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO A NUMBER OF
RISKS AND UNCERTAINTIES INCLUDING THE UNANTICIPATED LOSS OF ONE OR MORE MAJOR
CUSTOMERS, THE AVAILABILITY AND COST OF FINANCING, THE RISK OF A SOFTENING OF
CUSTOMER ACCEPTANCE OF THE COMPANY'S PRODUCTS, RISKS OF INTRODUCTION BY
COMPETITORS OF TRIM MANAGEMENT SYSTEMS WITH SIMILAR OR BETTER FUNCTIONALITY THAN
OUR MANAGED TRIM SOLUTION, PRICING PRESSURES AND OTHER COMPETITIVE FACTORS,
POTENTIAL FLUCTUATIONS IN QUARTERLY OPERATING RESULTS, OUR MANAGEMENT OF
POTENTIAL GROWTH AND THE RISKS OF EXPANSION INTO NEW BUSINESS AREAS. THESE AND
OTHER RISKS ARE MORE FULLY DESCRIBED IN THE COMPANY'S FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION INCLUDING THE COMPANY'S MOST RECENTLY FILED
ANNUAL REPORT ON FORM 10-K AND QUARTERLY REPORT ON FORM 10-Q, WHICH SHOULD BE
READ IN CONJUNCTION HEREWITH.