Hampshire Group (HAMP) Terminates Employment of CEO and Treasurer Due to Fradulent Expense Reports

September 25, 2006 3:44 PM EDT

Hampshire Group, Limited (NASDAQ: HAMP) announced that its Board of Directors has terminated the employment of Ludwig Kuttner, Hampshire's Chief Executive Officer. Mr. Kuttner had been placed on administrative leave in connection with the previously announced Audit Committee investigation.

Although the investigation is continuing, the Audit Committee's findings indicate that, among other issues still being reviewed, Mr. Kuttner submitted expense reports for approximately $1.45 million over a period of approximately 10 years, a substantial portion of which were fraudulent or not substantiated in accordance with Company policy.

The Company also announced that the Board has terminated the employment of Charles Clayton, the Company's Executive Vice President and Treasurer, who had also been placed on administrative leave.

Michael Culang will continue to serve as the interim Chief Executive Officer and Jonathan Norwood will continue to serve as the interim Treasurer.

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