Exhibit 99.1

NEWS BULLETIN                                      RE:    Tag-It Pacific, Inc.
                                                          3820 South Hill Street
                                                          Los Angeles, CA 90037
For further information:                                  234-9606
                                                          TRADED: AMEX:TAG
AT THE COMPANY:
Investor Relations Department
(213) 234-9606 Ext. 185
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FOR IMMEDIATE RELEASE
OCTOBER 19, 1998

                       TAG-IT PACIFIC, INC. CLOSES SALE OF
                      2,390,000 SHARES OF ITS COMMON STOCK

LOS ANGELES,  Calif.--  (BUSINESS  WIRE) -- October 19, 1998 -- Tag-It  Pacific,
Inc.  (AMEX:  TAG), one of the world' leading  single-source  providers of brand
identity  programs to the fashion driven apparel and licensed  consumer  product
industries, today announced that it sold 2,390,000 shares of its Common Stock to
a strategic investor for an aggregate price of $2,688,750 (or $1.125 per share).
Because  of a  confidentiality  agreement,  Tag-It  Pacific  is  prevented  from
disclosing more detailed information at this time. Further information regarding
this investment will be provided within the next ten days.

Tag-It Pacific is a single-source  provider of complete brand identity  programs
to  manufacturers  of fashion  driven  apparel  and  licensed  consumer  product
industries.  The Company  designs and  produces  high quality  paper,  metal and
injection  molded boxes,  woven and leather labels,  paper hanging and bar coded
tags,  metal jean buttons,  custom  shopping  bags.  Tag-It Pacific also designs
and/or  manufactures  products  for a variety of major brand and  private  label
oriented  companies  including  Guess?,  Calvin  Klein,  Tommy  Hilfiger,   Sony
Signatures, Warner Bros. and Carol Little, among others.

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