[INNOVO GROUP INC. LETTERHEAD]





      Innovo Group Completes Sale of Private Label Business

Innovo Group Announces Results of Annual Meeting of Stockholders


LOS  ANGELES,  May  16, 2006 - Innovo Group Inc.  (NASDAQ:  INNO)
announced  today that it has completed the sale of the assets  of
its  private  label apparel division.  In addition,  the  Company
announced the results from its annual stockholders' meeting  held
on May 12, 2006.  The voting results of the annual meeting are as
follows:

   --  A majority of the shares outstanding voted in person or by
  proxy in favor of the proposal to approve the sale of the assets
  of the Company's private label apparel division to Cygne Designs,
  Inc.  (NASDAQ: CYDS).  A total of approximately 20.3 million
  shares voted in favor of this proposal.

   --A majority of the shares present in person or by proxy voted
  in favor of the ratification of the appointment of Ernst & Young
  LLP as the Company's independent registered public accounting
  firm for the fiscal year ending November 25, 2006.

   --The seven director nominees who received the highest number
   of votes for election to the Company's Board of Directors were:
   Samuel  Furrow, Samuel J. Furrow, Jr., Marc Crossman,  Kelly
   Hoffman, Suhail Rizvi, Kent Savage, and Tom O'Riordan.

   --A total of approximately 32 million shares of the Company's
   common stock were represented by proxy at the annual meeting,
   which reflected approximately 96% of the total shares outstanding
   as of the April 12, 2006 record date.

  The  Company  also  announced that  immediately  following  the
annual  meeting  of stockholders, at the annual  meeting  of  the
Board of Directors, the newly elected Board voted unanimously  to
re-elect Sam Furrow as Chairman.

  Marc  Crossman,  Chief Executive Officer and director,  stated,
"We  are  extremely pleased with the results of our  2006  annual
stockholders' meeting, and are further pleased with the number of
stockholders who voted for the proposals presented at the  annual
meeting.  In particular, the approval of the sale of the  private
label  division represents an important step toward carrying  out
our  strategic  objectives  which we have  previously  announced,
namely  to  focus on our core asset, Joe's Jeansr and our  Joe'sr
branded   products.   After  obtaining  the   approval   of   our
stockholders,  we  were able to close this transaction  effective
May 12, 2006."



  Crossman  further  added,  "We  are  also  pleased  to  receive
approval of our slate of directors and the ratification of  Ernst
& Young as our independent registered public accounting firm.  We
believe  that  the  continuity  of  our  current  Board  and  its
composition will assist management in carrying out our  strategic
objectives."

About Innovo Group Inc.

Innovo  Group  Inc.,  through its operating  subsidiaries  Innovo
Azteca  Apparel,  Inc.  and Joe's Jeans, Inc.,  is  a  sales  and
marketing organization designing and selling apparel products  to
the  retail and premium markets.  The Company's apparel  products
consist  of  men's  and  women's denim and denim-related  apparel
products,  including,  high-end  denim  jeans  and  knit   shirts
featuring  Joe's(r)  and  Joe's Jeans(r)  branded  products. More
information   is   available  at  the   company   web   site   at
www.innovogroup.com.

Statements  in this news release which are not purely  historical
facts   are   forward-looking  statements,  including  statements
containing  the words "intend," "believe," "estimate,  "project,"
"expect"  or similar expressions.  Forward looking statements  in
this  press  release include, without limitation, our ability  to
achieve our strategic objectives of focusing on our Joe's  Jeansr
branded  products.   These statements are made  pursuant  to  the
safe  harbor provisions of Section 21E of the Securities Exchange
Act  of  1934,  as amended.  All forward-looking  statements  are
based upon information available to Innovo Group Inc. on the date
of   this  release.   Any  forward-looking  statement  inherently
involves risks and uncertainties that could cause actual  results
to differ materially from the forward-looking statements. Factors
that  would cause or contribute to such differences include,  but
are  not  limited to: uncertainty regarding the effect or outcome
of  the  Company's  decision to explore  strategic  alternatives;
continued   acceptance   of  the  Company's   products   in   the
marketplace, particularly acceptance and near-term sales  of  the
Company's brands such as Joe'sr; successful implementation of its
strategic plan; the extension or refinancing of its existing bank
facility  and the restrictions any such extension or  refinancing
could  place on the company; the ability to obtain new  financing
from  other  financing sources; the ability to generate  positive
cash  flow  from operations; competitive factors,  including  the
possibility  of  major  customers sourcing  product  overseas  in
competition   with  our  products;  dependence  upon  third-party
vendors;  a possible oversupply of denim in the marketplace;  and
other  risks  detailed in the Company's periodic  report  filings
with  the  Securities and Exchange Commission.  By  making  these
forward-looking statements, the Company undertakes no  obligation
to  update  these statements for revisions or changes  after  the
date  of this release.  Readers are cautioned not to place  undue
reliance on forward-looking statements.

Contact:
Innovo Group, Inc.
Shane Whalen
323-278-6764

Integrated Corporate Relations
Investors: Brendon Frey
Media: John Flanagan
203-682-8200