<PAGE>

                                                                      Exhibit 99


                                 Risk Factors

     In addition to the matters and risks set forth in the discussion of
Periscope's business in "Item I - Narrative Description of Business " in  the
Company's 1999 Form 10-K, the operating and financial results of Periscope are
subject to the following risks:

Competition
-----------

     Periscope competes in a highly competitive apparel industry with numerous
manufacturers, including brand name and private label producers, and retailers,
which have established, or may establish, internal product development and
sourcing capabilities. Periscope's products also compete with a substantial
number of designer and non-designer product lines. Periscope believes that it
competes favorably on the basis of quality and value of its apparel lines and
products, price, the production flexibility, efficiency and speed that it enjoys
as a result of its control over the entire production process, and its long-term
relationships with contract manufacturers and customers. Nevertheless, increased
competition from manufacturers or retailers, or increased success by existing
competition, could result in reductions in unit sales or prices, or both, which
could have a material adverse effect on the Periscope's business, financial
condition and  results of operations.

Seasonality of Business
-----------------------

     Periscope has not historically experienced seasonable variations in its
business with the exception of children's apparel; instead typically experiences
significant shifts in its net sales on a customer by customer and quarter by
quarter basis. Since most of the sales are derived from large bulk orders, a
change in the timing of receipt or shipment, or the number of orders received,
could result in a significant shift in the timing or amount of revenues.
Further, sales of children's apparel is seasonal with sales reaching their peak
during the ''back to school'' period. If sales of children's apparel increases,
greater variations maybe experienced in operating results from quarter to
quarter. The variations in the operating  results of  Periscope's business
affects borrowings under its' factoring agreement and its level of backlog,
which fluctuate in response to demand for its' products. Therefore, the results
of any interim period are not necessarily indicative of the operating  results
that may be achieved for an entire year.

Cyclically and Trends in the Apparel Industry
----------------------------------------------

     The apparel industry  historically has been subject to substantial cyclical
variations.  There can be no assurance that consumers will continue to favor the
products designed and produced by  Periscope under private label relationships
or its own brands, and a significant shift in consumer preferences could have a
material adverse effect on Periscope's business, financial condition and results
of operations. The apparel industry is a cyclical industry heavily dependent
upon the overall level of consumer spending, with purchases of apparel and
related goods tending to decline during  recessionary periods when disposable
income declines. A difficult retail environment could result in downward price
pressure, which could adversely impact gross profit margins. Additionally, all
of Periscope's customers are in the retail industry, which industry has
experienced significant changes and difficulties over the past several years,
including consolidation of ownership, increased centralization of buying
decisions, restructuring, bankruptcies and liquidations. Additionally, financial
problems of a retailer could cause Periscope's factor to limit the amount of
credit extended to such retailer.  Periscope cannot predict what effect, if any
continued or additional changes within the retail industry will have on its
business, financial condition or results of operations.



<PAGE>
                                                                      Exhibit 99

                              Risk Factors (cont.)
                              --------------------

Price and Availability of Raw Materials
---------------------------------------

     The price and availability of the raw materials used to manufacture apparel
products may fluctuate significantly, depending on a variety of factors,
including crop yields and weather patterns. Periscope currently does not engage
in any hedging activities intended to offset the risk of raw material price
fluctuations.  There also can be no assurance that any future increase in the
prices paid for the raw materials used in the manufacture of Periscope's
products will be passed along to its customers.

Dependence upon Key Personnel
------------------------------

     Historically, Periscope's success was dependent upon the industry expertise
and knowledge of its prior management. Effective April 11, 2000, Periscope
entered into an agreement with Stone Investment Banking, LLC ("SIB"). Management
representation provided by SIB will include, but is not limited, to the
management of Periscope's operations on a daily basis and representing Periscope
regarding the negotiation of debt with all creditors, including the factor.
Effective April 11, 2000, Periscope terminated the employment of Mr. Sands as
president and chief executive officer and appointed Ralph Stone of SIB as chief
executive officer. In addition, Scott Pianin, a long-time Periscope senior
executive was named president of the company. Periscope has entered into an
employment agreement with Mr. Pianin for a term expiring December 31, 2002.
Periscope believes that the loss of the services of Mr. Pianin and Mr. Stone may
have an adverse effect on its' operations. Periscope maintains key man life
insurance on the life of Mr. Pianin in the amount of $10 million of which GIANT
GROUP, LTD. is the beneficiary for $9.25 million.

Dependent on Factoring of Accounts Receivable
---------------------------------------------

     Periscope obtains substantially all its working capital by selling its
trade accounts receivable to a factor, which assumes the credit risk with
respect to collection of such accounts. The factor approves the credit of
Periscope's customers prior to sale. If the factor disapproves a customer sales
order, Periscope bears the credit risk if the sale is completed. The factor may
terminate the factoring agreement after giving Periscope up to 65 days prior
notice, as stated in the factoring agreement. Such termination could have a
material adverse effect on the Company's consolidated financial condition and
results of operations if Periscope could not replace the factoring agreement
within such period. Periscope is not in compliance with various financial and
reporting covenants in the agreement with its factor. There can be no assurances
that the factor will continue to provide advances to Periscope in the future and
not demand payment on the loan.

Dependence on Unaffiliated Manufacturers
----------------------------------------

     Periscope does not own or operate any manufacturing facilities and is
therefore dependent on independent contractors for the manufacture of its
products.  The manufacturers manufacture Periscope's products to its
specifications.  The inability of a manufacturer to ship products in a timely
manner or to meet Periscope's quality standards could adversely affect
Periscope's ability to deliver products to its customers in a timely manner.
Delays in delivery could result in missing certain retailing seasons with
respect to some or all of Periscope's products or could otherwise have an
adverse effect on Periscope's financial condition and results of operations.
There are no formal arrangements between Periscope and any of its contractors or
suppliers.



<PAGE>

                                                                      Exhibit 99

                             Risk Factors (cont.)
                             --------------------

Foreign Operations
------------------

     Beginning in 1999, substantially all of Periscope's products are being
manufactured in foreign countries, primarily Mexico, China and Taiwan.
Operations may be adversely affected by political instability resulting in
disruption of trade from foreign countries in which the Periscope's  contractors
and suppliers are located, the imposition of additional regulations related to
imports or duties, taxes and other charges on imports.  In addition,  import
operations are subject to constraints imposed by bilateral textile agreements
between the United States and a number of foreign countries.  These agreements
impose quotas on the amount and type of goods, which can be imported into the
United States from these countries and can limit or prohibit importation of
products on very short notice.  Periscope's  imported products, excluding goods
from Mexico which are subject to NAFTA, are also subject to United States
customs duties which are a material portion of  Periscope's cost of imported
goods.  A substantial increase in customs duties or a substantial reduction in
quota limits applicable to imports could have a material adverse effect on
Periscope's  financial condition and results of operations.

     There have been a number of recent trade disputes between China and the
United States during which the United States has threatened to impose tariffs
and duties on some products imported from China and to withdraw China's "most
favored nation" trade status.  The loss of most favored nation trade status for
China, changes in current tariff structures or the adoption by the United States
of trade policies of sanctions adverse to China could have a material adverse
effect on Periscope's results of operations from these import goods. At the end
of 1999 substantially all new orders were being manufactured and imported from
Asia.

     Because Periscope's manufacturers in China and Taiwan are located at
greater geographic distances from the company than its manufacturers in Mexico,
Periscope  is generally required to allow greater lead time for these foreign
orders.  This reduces manufacturing flexibility and its ability to accept some
orders.

_____________________________