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AMERICAN APPAREL SECURES VENTURE CAPITAL FUNDING

Los Angeles, October 29, 2004 – American Apparel of Los Angeles California, a leading U.S. manufacturer of apparel, announced today the closing of mezzanine financing lead by C3 Capital Partners, L.P. of Kansas City, Missouri. Financial terms of the transaction were not disclosed.

C3 was joined in the financing by Eagle Fund I, L.P., an SBIC fund managed by Bush O’Donnell Capital Partners of St. Louis Missouri.

"We are excited about our new partnership with C3 Capital and Bush O’Donnell. With these new partners, and our bank lender, U.S. Bank, American Apparel is financially positioned to continue the significant growth of its business," said Dov Charney, President and CEO of American Apparel.

American Apparel manufactures and distributes blank t-shirts and other basic apparel items, such as sweatpants, jackets, and undergarments, to wholesalers, distributors, and screen printers throughout the United States and Canada. American Apparel also operates retail stores throughout the United States and Europe.

“American Apparel is a leading U.S. apparel manufacturer and represents an excellent investment opportunity for Eagle Fund,” said Wayne L. Smith, II, President of Bush O'Donnell Capital Partners. “American Apparel is a market leader with a management team that has significant industry expertise and a clear commitment to manufacturing apparel products in the United States.”

About American Apparel
American Apparel manufactures and distributes blank t-shirts and other basic apparel items, such as sweatpants, jackets, and undergarments, to wholesalers, distributors, and screen printers throughout the United States and Canada. American Apparel also operates 11 retail stores throughout the United States and Europe. All of its garments are cut and sewn at its 500,000-square-foot facility in downtown Los Angeles. For additional information, visit their website at www.americanapparel.net.

About Bush O’Donnell
Bush O'Donnell is a holding company headquartered in St. Louis with interests in investment management, insurance, manufacturing and private equity investments. Since 1988 its principals have been investing in a wide range of publicly and privately owned businesses. One of Bush O’Donnell’s wholly owned subsidiaries, Bush O’Donnell Capital Partners, manages Eagle Fund I, L.P., a Small Business Investment Company with committed capital of $75 million. Eagle Fund invests from $1 million to $4 million in the mezzanine debt and equity securities of companies with compelling business plans.

About C3 Capital Partners
C3 Capital Partners, L.P. is a Small Business Investment Company with committed capital of over $100 million and offices in Kansas City and Dallas that provides capital for businesses to finance later stage growth, strategic acquisitions, ownership transitions, and recapitalizations. The fund makes $2 million to $10 million investments in the form of subordinated debt or preferred equity in established businesses with a history of profitability.



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