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INCA Designs Significantly Improves Profitability by Shifting Its Focus to the Wholesale Swimsuit and Resort Wear Markets


February 22, 2011 - MIAMI, FL

INCA DESIGNS INC. (PINKSHEETS: IDGI), a leading designer and manufacturer of high fashion designer swimwear, resort wear and accessories has completed the transition of its business plan to focus on the wholesale market and abandon its brick and mortar operation.

"INCA's strategic decision to close its retail operations is twofold," stated Stacy Josloff, INCA's CEO and designer. "First, the uncertainty pending the Gansevoort's bankruptcy and foreclosure made INCA's retail sales unpredictable. Our market became undefined and remaining at the Gansevoort would have become a financial burden. Second, focusing on wholesale allows INCA to vastly improve its profit margins by eliminating the considerable overhead associated with retail, including rent, utilities, salaries, and other administrative expenses. These expenses would approach $1 million in 2011. By solely focusing on wholesale and eliminating close to $1 million in expenses, we will be able to significantly improve our gross profit margins, which have historically been 60-70 percent for our wholesale operations."

"This decision to focus on wholesale is already paying off for us," continued Josloff. "We are already seeing our income statements vastly improve. Our recent appearance in the 2011 Sports Illustrated Swimsuit Edition will only help to increase sales and reach our highest levels of economies of scale."

"Our Company is always looking to the future. The response to our new product lines has been overwhelmingly positive, and I am thrilled with our decision to really focus on increased sales and profitability. I look forward to continuing to raise the bar on how we excite our customers and deliver returns for our shareholders. I have no doubt we will be gaining substantial and profitable market share around the world," Josloff added.

ABOUT INCA DESIGNS:

Inca Designs Inc. designs, sources and sells high fashion designer swimwear, resort wear and accessories for the wholesale and retail markets under the brand name Inca. The Company has also expanded its apparel lines to include children's fashion with Inca Girl launched in 2005, and is planning a new line of home accessories. This Miami-based swim and resort wear designer currently markets its apparel through several retail boutiques and specialty including Ritz-Carlton, Swimwear Boutique, Beloved Star, 25 Park, and on e-commerce powerhouses such as shopbop.com and others. Inca branded apparel is sold in US, Europe, Asia, and the Caribbean. Additionally, Inca is now represented by Salon-9, the wholesale buyer showroom started by Red Carter, in Los Angeles and New York.

The Inca brand was launched in 2000, originally inspired by Peruvian art and culture. Stacy Josloff, Inca designer and CEO, created a line of swimwear that incorporated bright colors, intricate detailing and exotic textiles. The line enjoyed immediate success and gained strong visibility when Hollywood celebrities such as Kelly Ripa, Brooke Shields, Molly Simms, Denise Richards and Swimsuit Supermodel Marissa Miller became early patrons. Inca Designs Inc has previously appeared in magazines such as Cosmopolitan, Vogue, Glamour, US Magazine, Runway, People, WWD, and on national television's Good Morning America, the NBC's Today show, and has also appeared on local NBC and CBS affiliates.

FORWARD-LOOKING STATEMENTS:

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause results to differ materially. Such risks, uncertainties and other factors include but are not limited to new economic conditions, risk in product development, market acceptance of new products and continuing product demand, level of competition and other factors described in reports and filings with regulatory bodies.

CONTACT:
Carma Public Relations & Marketing
Lyndsey Cooper
305-438-9200
Lyndsey@carmapr.com

MarketWire

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