December 2008 Comparable Store Sales Increased 3% Fourth Quarter 2008 Comparable Store Sales Increased 10% Fourth Quarter 2008 Retail Sales Increased 53% to $98 million 2008 Retail Sales Increased 62% to $341 million

American Apparel reported that for the month of December 2008, sales for stores open for more than twelve months increased 3% over the year ago period, on a constant currency basis. For the month of December 2007, comparable store sales increased 37%. There were 162 stores in the sales comparison for December 2008.

For the fourth quarter ended December 31, 2008, comparable store sales increased 10% over the fourth quarter of 2007. As previously reported, comparable store sales increased 40% for the fourth quarter ended December 31, 2007.

American Apparel also reported that total retail sales (unaudited) for the fourth quarter ended December 31, 2008 increased 53% to $98 million, compared to $64 million in the fourth quarter of 2007. Total retail sales (unaudited) for the entire year of 2008 increased 62% to $341 million, as compared to $211 million in 2007. For the entire year of 2008, comparable store sales increased 22%.

American Apparel opened 14 new retail stores during the month of December in the following locations: 429 Broadway, New York City; the Third Street Promenade in Santa Monica, California; San Diego, California; Burlingame, California; Scottsdale, Arizona; Honolulu, Hawaii; the Prime Outlets in St. Augustine, Florida; Boston, Massachusetts; Manchester, England; Aix en Provence, France; Toulouse, France; Adelaide, Australia; Yokohama, Japan; and the King Glory Mall in Shenzhen, China. In the fourth quarter of 2008, American Apparel opened 34 new retail locations. For the year, the company opened 81 new locations, while closing 3 stores. American Apparel ended the year with 260 retail locations.

About American Apparel

American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of December 31, 2008, American Apparel employed over 10,000 people and operated 260 retail stores in 19 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea, and China. American Apparel also operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. In addition to its retail stores and wholesale operations, American Apparel operates an online retail e-commerce website at http://store.americanapparel.net.

Safe Harbor Statement

This press release may contain forward-looking statements which are based upon the current beliefs and expectations of our management, but are subject to risks and uncertainties, which could cause actual results and/or the timing of events to differ materially from those set forth in the forward-looking statements, including, among others: changes in the level of consumer spending or preferences or demand for our products; increasing competition; our ability to hire and retain key personnel and our relationship with our employees; suitable store locations and our ability to attract customers to our stores; effectively carrying out and managing our growth strategy; failure to maintain the value and image of our brand and protect our intellectual property rights; declines in comparable store sales; seasonality; consequences of our significant indebtedness, including our ability to comply with our debt agreements, generate cash flow to service our debt; our ability to extend, renew or refinance our existing debt; costs of materials and labor; location of our facilities in the same geographic area; manufacturing, supply or distribution difficulties or disruptions; risks of financial nonperformance by customers; investigations, enforcement actions and litigation; compliance with or changes in laws and regulations; costs as a result of operating as a public company; material weaknesses in internal controls; interest rate and foreign currency risks; loss of U.S. import protections or changes in duties, tariffs and quotas and other risks associated with international business; our ability to upgrade our information technology infrastructure and other risks associated with the systems that operate our online retail operations; general economic and industry conditions, including worsening U.S. and foreign economic conditions and turmoil in the financial markets; and other risks detailed in our filings with the Securities and Exchange Commission, including our 2007 Annual Report on Form 10-K. Our filings with the SEC are available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Contact:

ICR
Joseph Teklits / Jean Fontana
203-682-8200
or
American Apparel
Adrian Kowalewski, 213-488-0226
Chief Financial Officer