Phoenix Footwear Group has acquired the assets of the Paradise Shoe Company, LLC, the exclusive licensee of the Tommy Bahama line of men's and women's footwear, hosiery and belts.  The acquisition is effective immediately.    As a result of the acquisition, Phoenix Footwear has signed an exclusive licence agreement with the Tommy Bahama Division of Oxford Industries, Inc., whereby Phoenix Footwear will design, manufacture and distribute the Tommy Bahama footwear, hosiery, belts and men's small leather goods and accessories.

James R. Riedman, chairman of Phoenix Footwear, commented, "Today's acquisition and licensing agreement adds another profitable lifestyle brand with strong brand recognition to our wearables portfolio.  It is a perfect strategic fit with our recent Chambers Belt acquisition, providing us an up market lifestyle brand for independent specialty and better department store distribution.”

Phoenix also announced increased sales for the second quarter ended July 2, 2005. Net sales rose 10.6% to $15.4 million compared with $13.9 million for the second quarter of 2004. Although the company recorded a net loss of $1.0 million it said that the results were in line with revised expectations.