<SUBMISSION>
<ACCESSION-NUMBER>0001019056-08-000667
<TYPE>SC 13E3/A
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20080520
<DATE-OF-FILING-DATE-CHANGE>20080520
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>JACLYN INC
<CIK>0000052969
<ASSIGNED-SIC>3100
<IRS-NUMBER>221432053
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13E3/A
<ACT>34
<FILE-NUMBER>005-13465
<FILM-NUMBER>08847200
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>197 WEST SPRING VALLEY AVENUE
<CITY>MAYWOOD
<STATE>NJ
<ZIP>07607
<PHONE>201-909-6000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>197 WEST SPRING VALLEY AVENUE
<CITY>MAYWOOD
<STATE>NJ
<ZIP>07607
</MAIL-ADDRESS>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>JACLYN INC
<CIK>0000052969
<ASSIGNED-SIC>3100
<IRS-NUMBER>221432053
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13E3/A
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>197 WEST SPRING VALLEY AVENUE
<CITY>MAYWOOD
<STATE>NJ
<ZIP>07607
<PHONE>201-909-6000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>197 WEST SPRING VALLEY AVENUE
<CITY>MAYWOOD
<STATE>NJ
<ZIP>07607
</MAIL-ADDRESS>
</FILED-BY>
<DOCUMENT>
<TYPE>SC 13E3/A
<SEQUENCE>1
<FILENAME>jaclyn_13e3final.htm
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4 color=black>
<BR>
<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>UNITED
 STATES</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>SECURITIES
 AND EXCHANGE COMMISSION</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Washington, D.C. 20549</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>SCHEDULE
 13E-3</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>RULE
 13e-3 TRANSACTION STATEMENT</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>(Pursuant
 to Section 13(e) of the Securities Exchange Act of 1934)</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>(Amendment No. 4 </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=6><B>Jaclyn, Inc.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="25%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(Name of the Issuer)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=6><B>Jaclyn, Inc.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="25%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(Name of Person(s) Filing Statement)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Common Stock, $1.00 par value per share</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="34%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(Title of Class of Securities)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>469772107</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="9%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(CUSIP Number of Class of Securities)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Robert Chestnov</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>President and Chief Executive Officer</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Jaclyn, Inc.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>197 West Spring Valley Avenue</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Maywood, New Jersey 07607</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(201) 909-6000</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="13%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(Name, Address and Telephone Number of Persons Authorized to</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Receive Notices and Communications on Behalf of Person(s) Filing</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Statement)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><I>Copy to</I>:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>William D. Freedman, Esq.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Troutman Sanders LLP</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>The Chrysler Building</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>405 Lexington Avenue</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>New York, New York 10174</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(212) 704-6000</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>This statement
is filed in connection with (check the appropriate box): </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2 FACE=WINGDINGS>x</font>
<font size=2 > The filing of solicitation materials or an information statement subject to </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Regulation
 14A, Regulation 14C, or Rule 13e-3(c) under the Securities Exchange Act of
 1934.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>b.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> <FONT FACE=WINGDINGS>o</FONT> The filing of a registration
 statement under the Securities Act of 1933. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>c.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> <FONT FACE=WINGDINGS>o</FONT> A tender offer. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>d.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> <FONT FACE=WINGDINGS>o</FONT> None of the above. </FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Check the
following box if the soliciting materials or information statement referred to
in checking box (a) are preliminary copies: <FONT FACE=WINGDINGS>o</FONT> </FONT></P>

<P STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN'><FONT SIZE=2>Check the following box if the
filing is a final amendment reporting the results of the transaction: <FONT FACE=WINGDINGS> x </FONT></FONT></P>

<P ALIGN=CENTER><FONT SIZE="2">Calculation of Filing Fee </FONT>


<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0  width=80%>
<TR style="font-size:1px">
<TD WIDTH="50%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="50%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP style="border-bottom:1px solid black;border-left:1px solid black;border-right:1px solid black;border-top:1px solid black">
<P ALIGN=CENTER><FONT SIZE="2">Transaction Valuation (*) </FONT> </P>
</TD>
<TD VALIGN=TOP style="border-bottom:1px solid black;border-right:1px solid black;border-top:1px solid black">
<P ALIGN=CENTER><FONT SIZE="2">Amount of Filing Fee (**) </FONT> </P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP style="border-bottom:1px solid black;border-left:1px solid black;border-right:1px solid black">
<P ALIGN=CENTER><FONT SIZE=2>$3,127,517</FONT></P>
</TD>
<TD VALIGN=TOP style="border-bottom:1px solid black;border-right:1px solid black">
<P ALIGN=CENTER><FONT SIZE=2>$122.91</FONT></P>
</TD>
</TR>
</TABLE>


<P><FONT SIZE=2>(*) Calculated
solely for purposes of determining the filing fee. This amount assumes the
acquisition of approximately 306,319 shares of common stock for $10.21 per
share in cash in lieu of issuing fractional shares to holders of less than 250
shares of common stock after the proposed reverse/forward stock split. </FONT></P>

<P><FONT SIZE=2>(**) The
filing fee is calculated in accordance with Rule 0-11(b) by multiplying the
Transaction Valuation of $3,127,517 by .00003930. </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2 FACE=WINGDINGS>x</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Check the
 box if any part of the fee is offset as provided by Exchange Act Rule
 0-11(a)(2) and identify the filing with which the offsetting fee was
 previously paid. Identify the previous filing by registration statement
 number, or the Form or Schedule and the date of its filing. </FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
<TR style="font-size:1px">
<TD WIDTH="50%" VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="50%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT SIZE="2">Amount Previously Paid: <U>$40.40</U> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">Filing
Party: <U>Jaclyn, Inc.</U> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT SIZE="2">Form or Registration No.: <U>Schedule 13E-3</U> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">Date Filed:
<U>December 21, 2007</U> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT SIZE="2">Amount Previously Paid: <U>$82.51</U> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">Filing
Party: <U>Jaclyn, Inc.</U> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT SIZE="2">Form or Registration No.: <U>Schedule 13E-3</U> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">Date Filed:
<U>February 22, 2008</U> </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4 color=black><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2>RULE 13e-3 TRANSACTION STATEMENT</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>INTRODUCTION</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Amendment No.  4 (this &#147;<B>Amendment No.  4 </B>&#148;)
amends and supplements the Rule 13e-3 Transaction Statement on Schedule 13E-3
(as amended through this Amendment No.  4 , this &#147;<B>Schedule 13E-3</B>&#148;) initially filed by Jaclyn, Inc., a Delaware
corporation (the &#147;<B>Company</B>&#148;), on
December 21, 2007. This Amendment No. 4 is being filed pursuant to Rule
13e-3(d)(3) as a final amendment to the Schedule 13E-3 to report the results of
the stock split transactions described below (the &#147;<B>Transaction</B>&#148;) . </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
a special meeting of stockholders held on May 7, 2008, a majority of
outstanding shares of Common Stock adopted and approved amendments to the
Company&#146;s certificate of incorporation to effect a reverse stock split of the
Company&#146;s issued and outstanding shares of Common Stock at a ratio of
1-for-250, followed immediately by a 250-for-1 forward stock split of the
shares of Common Stock. The amendments were adopted and approved with (a)
1,859,700 shares of Common Stock voting in favor of the reverse stock split,
85,748 shares voting against the reverse stock split and 4,498 shares voting to
abstain, and (b) 1,859,138 shares of Common Stock voting in favor of the
forward stock split, 86,310 shares voting against the forward stock split and
4,498 shares voting to abstain. The Company filed certificates of amendment to
its certificate of incorporation with the Secretary of State of Delaware to
effect the Transaction on May 19, 2008. The reverse stock split became
effective at 11:58 pm. EST on May 19, 2008 and the forward stock split became
effective at 11:59 pm. EST on May 19, 2008. After the effectiveness of the
Transaction, stockholders holding less than 250 shares of Common Stock
immediately prior to the reverse stock split are entitled to a cash payment
equal to $10.21 per whole share of Common Stock, without interest. Stockholders
holding 250 or more shares of Common Stock immediately prior to the reverse
stock split participated in the forward split and therefore continued to hold
the same number of shares immediately after the Transaction as they did
immediately before the Transaction. </FONT></P>

<P><FONT SIZE=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on the information available to the Company, the Transaction reduced the number
of record holders of the Common Stock to fewer than 300. The Company filed a
Form 15 with the Securities and Exchange Commission (the &#147;<B>SEC</B>&#148;) on May 20, 2008 to terminate
registration of the Common Stock under Section 12(g) of the Securities Exchange
Act of 1934, as amended (the &#147;<B>Exchange Act</B>&#148;),
and to suspend its reporting obligations under the Exchange Act. Upon the
filing of the Form 15, the Company&#146;s obligation to file periodic reports with
the SEC, including annual reports on Form 10-K and quarterly reports on Form
10-Q, was suspended. On May 7, 2008, the Company filed a Form 25 with the
Securities and Exchange Commission to voluntarily withdraw its common stock
from listing on the American Stock Exchange (the &#147;<B>Exchange</B>&#148;) and to deregister its common stock under Section
12(b) of the Exchange Act. The Common Stock was delisted from the Exchange
effective on May 19, 2008. </FONT></P>

<P STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN'><FONT SIZE=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
April 8, 2008, the Company filed a definitive proxy statement (the &#147;<B>Proxy Statement</B>&#148;) pursuant to Regulation
14A under the Securities Exchange Act of 1934, as amended. The information
contained in the Proxy Statement, including all annexes thereto, is expressly
incorporated herein by reference and the responses to each item of this
Schedule 13E-3 are qualified in their entirety by reference to the information
contained in the Proxy Statement. Capitalized terms used and not otherwise
defined herein have the meanings ascribed to such terms in the Proxy Statement </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 1.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Summary Term Sheet </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in the Proxy Statement under the caption &#147;SUMMARY TERM
SHEET&#148; is incorporated herein by reference. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 2.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Subject Company Information </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Name and Address</I>. The name of the subject
company is Jaclyn, Inc, a Delaware corporation. The Company&#146;s principal
executive offices are located at 197 West Spring Valley Avenue, Maywood, New
Jersey 07607. The Company&#146;s telephone number is (201) 909-6000. </FONT></P>

<P><FONT SIZE=2>(b) <I>Securities</I>. The subject class of equity
securities to which this Schedule 13E-3 relates is the Company&#146;s common stock,
$1.00 par value per share, of which 2,468,614 shares were outstanding as of
April 1, 2008. </FONT></P>

<P><FONT SIZE=2>(c<I>) Trading Market and Price</I>. The
information set forth in the Proxy Statement under &#147;INFORMATION ABOUT THE
COMPANY &#151; Market Price of Common Stock&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(d) <I>Dividends</I>. The information set forth in
the Proxy Statement under &#147;INFORMATION ABOUT THE COMPANY &#151; Dividends&#148; is
incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(e) <I>Prior Public Offerings</I>. The Company has
not made an underwritten public offering of its Common Stock for cash during
the three years preceding the date of the filing of this Schedule 13E-3. </FONT></P>

<P><FONT SIZE=2>(f) <I>Prior Stock Purchases</I>. The information set
forth in the Proxy Statement under &#147;INFORMATION
ABOUT THE COMPANY &#151; Stock Purchases&#148; is incorporated herein by reference. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 3.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Identity and Background of Filing Person </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Name and Address</I>. The filing person, the
Company, is also the subject company, with its address and telephone number
provided in Item 2(a) above. The name of each director and executive officer is
set forth below. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Board of
  Directors</U></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Abe Ginsburg</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Allan
  Ginsburg</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Robert
  Chestnov</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Howard
  Ginsburg</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Martin Brody</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Richard
  Chestnov</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Albert Safer</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Norman
  Axelrod</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Harold
  Schechter </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Executive
  Officers </U></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Allan
  Ginsburg &#151; Chairman of the Board </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Robert
  Chestnov &#151; President and Chief Executive Officer</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Howard
  Ginsburg &#151; Vice Chairman of the Board </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Abe Ginsburg
  &#151; Chairman of the Executive Committee </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Anthony
  Christon &#151; Chief Financial Officer</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>The address of
each director and executive officer of the Company is c/o Jaclyn, Inc., 197
West Spring Valley Avenue, Maywood, New Jersey 07607. </FONT></P>

<P><FONT SIZE=2>Messrs. Abe
Ginsburg, Allan Ginsburg, Robert Chestnov and Howard Ginsburg, certain family
members, trusts and custodianships for the benefit of such individuals and
family members, unrelated individuals, and the Company are parties to the
Stockholders Agreement. On the date hereof 1,257,643 shares, or approximately 50.9%,
of the issued and outstanding shares of the Common Stock, were held by the
parties to the Stockholders Agreement. Messrs. Abe Ginsburg, Allan Ginsburg,
Robert Chestnov and Howard Ginsburg, as the stockholders committee under the
Stockholders Agreement, may direct the vote of these shares. As a result, each
of these individuals may be deemed a person controlling the Company for
purposes of Instruction C to the Schedule 13E-3. </FONT></P>

<P><FONT SIZE=2>(b) <I>Business and Background of Entities</I>. Not
applicable. </FONT></P>

<P><FONT SIZE=2>(c) <I>Business and Background of Natural Persons</I>.
The information set forth in the Proxy Statement under &#147;INFORMATION ABOUT THE
COMPANY &#151; Directors and Executive Officers&#148; is incorporated herein by
reference. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
the Company nor to the Company&#146;s knowledge, none of the Company&#146;s directors or
executive officers has been convicted in a criminal proceeding during the past
five years (excluding traffic violations or similar misdemeanors) or has been a
party to any judicial or administrative proceeding during the past five years
(except for matters that were dismissed without sanction or settlement) that
resulted in a judgment, decree or final order enjoining the person from future
violations of, or prohibiting activities subject to, federal or state
securities laws, or a finding of any violation of federal or state securities
laws. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the Company&#146;s directors and executive officers is a citizen of the United
States. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 4.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Terms of the Transaction </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Material Terms</I>. The information set forth
in the Proxy Statement under &#147;SUMMARY TERM SHEET&#148; and &#147;SPECIAL FACTORS&#148; is
incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(c) <I>Different Terms</I>. The information set forth
in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151; The Transaction,&#148; &#147;&#151; Effects
of the Transaction,&#148; &#147;&#151; Fairness of the Transaction,&#148; &#147;&#151; Treatment of
Beneficial Holders (stockholders holding shares in street name),&#148; and &#147;&#151;
Material Federal Income Tax Consequences;&#148; and SPECIAL FACTORS &#151; Effects of the
Transaction,&#148; &#147;&#151; Fairness of the Transaction,&#148; and &#147;&#151; Material Federal Income
Tax Consequences&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(d) <I>Appraisal Rights</I>. The information set
forth in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151; No Appraisal or
Dissenters&#146; Rights;&#148; and &#147;SPECIAL FACTORS &#151; No Appraisal or Dissenters&#146; Rights&#148;
is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(e) <I>Provisions for Unaffiliated Security Holders</I>.
The information set forth in the Proxy Statement under &#147;SPECIAL FACTORS &#151;
Fairness of the Transaction&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(f) <I>Eligibility for Listing or Trading</I>. Not
applicable. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 5.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Past Contracts, Transactions, Negotiations and Agreements </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Transactions</I>. Not Applicable. </FONT></P>

<P><FONT SIZE=2>(b) <I>Significant Corporate Events</I>. Not
applicable. </FONT></P>

<P><FONT SIZE=2>(c) <I>Negotiations or Contacts</I>. Not applicable. </FONT></P>

<P><FONT SIZE=2>(e) <I>Agreements Involving the Subject Company&#146;s Securities</I>.
The information set forth in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151;
Potential Conflicts of Interests of Officers, Directors, and Certain Affiliated
Persons,&#148; and &#147;&#151; Vote Required for Approval of the Transaction at the Special
Meeting;&#148; and &#147;SPECIAL FACTORS &#151; Potential Conflicts of Interests of Officers,
Directors, and Certain Affiliated Persons,&#148; &#147;and &#147;&#151; Stockholder Approval&#148; is
incorporated herein by reference. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 6.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Purposes of the Transaction and Plans or Proposals </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(b) <I>Use of Securities Acquired</I>. The
information set forth in the Proxy Statement under &#147;SPECIAL FACTORS &#151; Effective
Date&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(c) <I>Plans</I>. The information set forth in the
Proxy Statement under &#147;SUMMARY TERM SHEET &#151; Purpose of and Reasons for the
Transaction,&#148; &#147;&#151; Effects of the Transaction,&#148; and &#147;&#151; Special Committee and
Board of Directors&#146; Protections for Continuing Stockholders;&#148; and &#147;SPECIAL
FACTORS &#151; Purpose of and Reasons for the Transaction,&#148; &#147;&#151; Special Committee and
Board of Directors&#146; Protections for Continuing Stockholders,&#148; &#147;&#151; Background of
the Transaction,&#148; &#147;&#151; Effects of the Transaction,&#148; &#147;&#151; American Stock Exchange
Listing; Pink Sheets Listing,&#148; &#147;&#151; Fairness of the Transaction,&#148; and &#147;&#151; Conduct
of the Company&#146;s Business After the Transaction&#148; is incorporated herein by
reference. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 7.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Purposes, Alternatives, Reasons and Effects </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Purposes</I>. The information set forth in the
Proxy Statement under &#147;SUMMARY TERM SHEET &#151; Purpose of and Reasons for the
Transaction;&#148; and &#147;SPECIAL FACTORS &#151; Purpose of and Reasons for the
Transaction&#148; and &#147;&#151; Background of the Transaction&#148; is incorporated herein by
reference. </FONT></P>

<P><FONT SIZE=2>(b) <I>Alternatives</I>. The information set forth in
the Proxy Statement under &#147;SPECIAL FACTORS &#151; Background of the Transaction,&#148;
and &#147;&#151; Alternatives to the Transaction&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(c) <I>Reasons</I>. The information set forth in the
Proxy Statement under SUMMARY TERM SHEET &#151; Purpose of and Reasons for the
Transaction;&#148; and &#147;SPECIAL FACTORS &#151; Purpose of and Reasons for the
Transaction,&#148; &#147;&#151; Background of the Transaction,&#148; &#147;&#151; Alternatives to the
Transaction,&#148; and &#147;&#151; Fairness of the Transaction&#148; is incorporated herein by
reference. </FONT></P>

<P><FONT SIZE=2>(d) <I>Effects</I>. The information set forth in the
Proxy Statement under &#147;SUMMARY TERM SHEET &#151; The Transaction,&#148; &#147;&#151; Effects of the
Transaction,&#148; &#147;&#151; Special Committee and Board of Directors&#146; Protections for
Continuing Stockholders,&#148; and &#147;&#151; Material Federal Income Tax Consequences;&#148; and
&#147;SPECIAL FACTORS &#151; Purpose and Reasons for the Transaction,&#148; &#147;&#151; Special
Committee and Board of Directors&#146; Protections for Continuing Stockholders,&#148; &#147;&#151;
Effects of the Transaction,&#148; &#147;&#151; American Stock Exchange Listing; Pink Sheets
Listing,&#148; &#147;&#151; Conduct of the Company&#146;s Business After the Transaction,&#148; and &#147;&#151;
Material Federal Income Tax Consequences&#148; is incorporated herein by reference. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 8.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Fairness of the Transaction </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Fairness</I>. The information set forth in the
Proxy Statement under &#147;SUMMARY TERM SHEET &#151; Special Committee and Board of
Directors Recommendations of the Transaction,&#148; and &#147;&#151; Fairness of the
Transaction;&#148; and &#147;SPECIAL FACTORS &#151; Background of the Transaction,&#148; and &#147;&#151;
Fairness of the Transaction&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(b) <I>Factors Considered in Determining Fairness</I>.
The information set forth in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151;
Purpose of and Reasons for the Transaction,&#148; &#147;&#151; Special Committee and Board of
Directors&#146; Protections for Continuing Stockholders,&#148; &#147;&#151; Special Committee and
Board of Directors Recommendations of the Transaction,&#148; &#147;&#151; Reservation of
Rights,&#148; and &#147;&#151; Fairness of the Transaction;&#148; and &#147;SPECIAL FACTORS &#151; Purpose of
and Reasons for the Transaction,&#148; &#147;&#151; Special Committee and Board of Directors&#146;
Protections for Continuing Stockholders,&#148; &#147;&#151; Background of the Transaction,&#148; &#147;&#151;
Alternatives to the Transaction,&#148; &#147;&#151; Fairness of the Transaction,&#148; and &#147;&#151;
Fairness Opinion of Financial Advisor&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(c) <I>Approval of Security Holders</I>. The
information set forth in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151;
Potential Conflicts of Interest of Officers, Directors, and Certain Affiliates
Persons,&#148; and &#147;&#151; Vote Required for Approval of the Transaction at the Special
Meeting;&#148; and &#147;SPECIAL FACTORS &#151; Fairness of the Transaction,&#148; &#147;&#151; Potential
Conflicts of Interests of Officers, Directors, and Certain Affiliated Persons,&#148;
and &#147;&#151; Stockholder Approval&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(d) <I>Unaffiliated Representatives</I>. The
information set forth in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151;
Fairness of the Transaction;&#148; and &#147;SPECIAL FACTORS &#151; Background of the
Transaction,&#148; &#147;&#151; Fairness of the Transaction,&#148; and &#147;&#151; Fairness Opinion of
Financial Advisor&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(e) <I>Approval of Directors</I>. The information set
forth in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151; Special Committee and
Board of Directors Recommendations of the Transaction,&#148; and &#147;&#151; Fairness of the
Transaction;&#148; and &#147;SPECIAL FACTORS &#151; Background of the Transaction,&#148; and &#147;&#151;
Fairness of the Transaction&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2><I>(f) Other Offers. </I>None.
</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 9.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Reports, Opinions, Appraisals and Negotiations </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><I>(a) Report, Opinion or Appraisal</I>.
The information set forth in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151;
Special Committee and Board of Directors Recommendations of the Transaction&#148;
and &#147;&#151; Fairness of the Transaction;&#148; and &#147;SPECIAL FACTORS &#151; Background of the
Transaction,&#148; &#147;&#151; Fairness of the Transaction,&#148; and &#147;&#151; Fairness Opinion of
Financial Advisor&#148; is incorporated herein by reference. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>(b) <I>Preparer and Summary of the Report, Opinion or
Appraisal</I>. The information set forth in the Proxy Statement under
&#147;SUMMARY TERM SHEET &#151; Special Committee and Board of Directors Recommendations
of the Transaction&#148; and &#147;&#151; Fairness of the Transaction;&#148; and &#147;SPECIAL FACTORS &#151;
Background of the Transaction,&#148; &#147;&#151; Fairness of the Transaction,&#148; and &#147;&#151;
Fairness Opinion of Financial Advisor&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE="2">(c) <I>Availability of Documents</I>. The full text
of the fairness opinion of Houlihan Smith &amp; Company, Inc. (&#147;<B>Houlihan</B>&#148;)
dated November 28, 2007, is attached as Annex B to the Proxy Statement. Each of
the fairness opinion of Houlihan and the Valuation Presentation of Houlihan
dated November 20, 2007 is also available for inspection and copying at the
Company&#146;s principal executive offices, 197 West Spring Valley Avenue, Maywood,
New Jersey 07607. </FONT> </P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 10.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Source and Amounts of Funds or Other Consideration </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Source of Funds. </I>The information set forth
in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151; Financing for the
Transaction;&#148; and &#147;SPECIAL FACTORS &#151; Effects of the Transaction&#148; and &#147;&#151; Source
of Funds and Expenses&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(b) <I>Conditions</I>. The information set forth in
the Proxy Statement under &#147;SUMMARY TERM SHEET &#151; Financing for the Transaction;&#148;
and &#147;SPECIAL FACTORS &#151; Effects of the Transaction&#148; and &#147;&#151; Source of Funds and
Expenses&#148; is incorporated herein by reference.</FONT></P>

<P><FONT SIZE=2>(c) <I>Expenses. </I>The information set forth in the
Proxy Statement under &#147;SPECIAL FACTORS &#151; Source of Funds and Expenses&#148; is
incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(d) <I>Borrowed Funds</I>. The information set forth
in the Proxy Statement under &#147;SUMMARY TERM SHEET &#151; Financing for the
Transaction;&#148; and &#147;SPECIAL FACTORS &#151; Effects of the Transaction,&#148; and &#147;&#151; Source
of Funds and Expenses&#148; is incorporated herein by reference. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 11.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Interest in Securities of the Subject Company </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Securities Ownership.</I> The information set
forth in the Proxy Statement under &#147;INFORMATION ABOUT THE COMPANY &#151; Security
Ownership of Certain Beneficial Owners&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(b) <I>Securities Transactions</I>. None. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 12.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The Solicitation or Recommendation </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(d)<I> Intent to Tender or Vote in a Going Private
Transaction.</I> The information set forth in the Proxy Statement under
&#147;SUMMARY TERM SHEET &#151; Effects of the Transaction,&#148; &#147;&#151;Potential Conflicts of
Interests of Officers, Directors, and Certain Affiliated Persons,&#148; and &#147;&#151; Vote
required for Approval of the Transaction at the Special Meeting;&#148; &#147;SPECIAL
FACTORS &#151; Effects of the Transaction,&#148; &#147;&#151; Potential Conflicts of Interests of
Officers, Directors, and Certain Affiliated Persons,&#148; and &#147;&#151; Stockholder
Approval&#148; is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2>(e) <I>Recommendation of Others</I>. The information set forth in the Proxy
Statement under &#147;SUMMARY TERM SHEET &#151; Potential Conflicts of Interests of
Officers, Directors, and Certain Affiliated Persons,&#148; and &#147;&#151; Vote required for
Approval of the Transaction at the Special Meeting;&#148; and &#147;SPECIAL FACTORS &#151;
Effects of the Transaction,&#148; &#147;&#151; Potential Conflicts of Interests of Officers,
Directors, and Certain Affiliated Persons,&#148; and &#147;&#151; Stockholder Approval&#148; is
incorporated herein by reference. </FONT></P>

<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:0IN; '><FONT SIZE=2>8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 13.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Financial Statements </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Financial Information</I>. The audited
financial statements and unaudited interim financial statements are
incorporated by reference in the Proxy Statement from the Company&#146;s Annual
Report on Form 10-K for the year ended June 30, 2007, and the Company&#146;s
Quarterly Report on Form 10-Q for the quarter ended December 31, 2007, which
are included with the Proxy Statement. The information set forth in the Proxy
Statement under &#147;FINANCIAL INFORMATION &#151; Summary Historical Financial
Information&#148; and &#147; &#151; Ratio of Earnings to Fixed Charges&#148; is incorporated herein
by reference. </FONT></P>

<P><FONT SIZE=2>(b) <I>Pro forma Information</I>. The information set
forth in the Proxy Statement under &#147;FINANCIAL
INFORMATION &#151; Pro Forma Financial Information&#148; and &#147; &#151; Ratio of Earnings to
Fixed Charges&#148; is incorporated herein by reference. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 14.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Persons/Assets, Retained, Employed, Compensated or Used </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a) <I>Solicitation or Recommendation.</I> The
information set forth in the Proxy Statement under &#147;MEETING AND VOTING
INFORMATION &#151; Solicitation&#148; is incorporated herein by reference.</FONT></P>

<P><FONT SIZE=2>(b) <I>Employees and Corporate Assets</I>. The
information set forth in the Proxy Statement under &#147;MEETING AND VOTING
INFORMATION &#151; Solicitation&#148; is incorporated herein by reference. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 15.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Additional Information </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(b) <I>Other Material Information</I>. The
information contained in the Proxy Statement, including all appendices attached
thereto, is incorporated herein by reference. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 16.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Exhibits </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>(a)(i) Notice
of Meeting and Definitive Proxy Statement of the Company (incorporated herein
by reference to the Proxy Statement filed with the Securities and Exchange
Commission on April 8, 2008). </FONT></P>

<P><FONT SIZE=2>(b)(i)
Revolving Loan Agreement dated December 23, 2002 between the Company and TD
Banknorth, N.A., successor to Hudson United Bank (<B>&#147;TD Banknorth&#148;</B>) (incorporated herein by reference to Exhibit
4(c) to the Company&#146;s Annual Report on Form 10-K, File No. 1-5863, for the
fiscal year ended June 30, 2003). </FONT></P>

<P><FONT SIZE=2>(b)(ii) First
Amendment to Revolving Loan Agreement, Promissory Note and Other Loan Documents
dated October 23, 2003 between the Company and TD Banknorth (incorporated
herein by reference to Exhibit 4(d) to the Company&#146;s Annual Report on Form
10-K, File No. 1-5863, for the fiscal year ended June 30, 2005). </FONT></P>

<P><FONT SIZE=2>(b)(iii)
Second Amendment to Revolving Loan Agreement, Promissory Note and Other Loan
Documents dated October 23, 2003 between the Company and TD Banknorth
(incorporated herein by reference to Exhibit 4(a) to the Company&#146;s Quarterly
Report on Form 10-Q, File No. 1-5863, for the fiscal quarter ended March 31,
2005). </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>(b)(iv) Third
Amendment to Revolving Loan Agreement, Promissory Note and Other Loan Documents
dated September 22, 2006 between the Company and TD Banknorth (incorporated
herein by reference to Exhibit 10.01 to the Company&#146;s Current Report on Form
8-K, File No. 1-5863, dated September 26, 2006). </FONT></P>

<P><FONT SIZE=2>(b)(v) Fourth
Amendment to Revolving Loan Agreement, Promissory Note and Other Loan Documents
dated December 20, 2007 between the Company and TD Banknorth (incorporated
herein by reference to Exhibit 10.01 to the Company&#146;s Current Report on Form
8-K, File No. 1-5863, dated December 21, 2007). </FONT></P>

<P><FONT SIZE=2>(c)(i) Opinion
of Houlihan Smith &amp; Company, Inc. dated November 28, 2007 (incorporated
herein by reference to Annex B of the Proxy Statement). </FONT></P>

<P><FONT SIZE=2>(c)(ii)
Presentation dated November 20, 2007 of Houlihan Smith &amp; Company, Inc. to
the Special Committee to the Board of Directors of the Company (incorporated by
reference to Exhibit (c)(ii) to the Company&#146;s initial Schedule 13E-3, File No.
5-13465, dated December 21, 2007). </FONT></P>

<P><FONT SIZE=2>(d)(i) Second
Amended and Restated Stockholders&#146; Agreement dated May 12, 2003 among the
Company and the persons listed on Schedule A thereto (incorporated by reference
to Exhibit (d)(i) to the Company&#146;s initial Schedule 13E-3, File No. 5-13465,
dated December 21, 2007). </FONT></P>

<P><FONT SIZE=2>(d)(ii)
Consent and Joinder Agreement dated August 10, 2004 among the Company, Mark
Nitzberg and the persons listed on Schedule A thereto (incorporated by
reference to Exhibit (d)(ii) to the Company&#146;s initial Schedule 13E-3, File No.
5-13465, dated December 21, 2007). </FONT></P>

<P><FONT SIZE=2>(d)(iii)
Consent and Joinder Agreement dated June 6, 2006 among the Company, Bruce
Cahill, John Halbreich, and the persons listed on Schedule A thereto
(incorporated herein by reference to Exhibit 10(l) to the Company&#146;s Annual
Report on Form 10-K, File No. 1-5863, for the fiscal year ended June 30, 2006).
</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Not
  applicable </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(g)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Not
  applicable. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P ALIGN=CENTER><FONT SIZE=2><B>SIGNATURE</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
reasonable inquiry and to the best of its knowledge and belief, the undersigned
certifies that the information set forth in this statement is true, complete
and correct. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="50%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="17%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="29%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>JACLYN, INC.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>/s/ Anthony
  Christon</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Anthony
  Christon</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Vice
  President and Chief Financial Officer</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Dated: May 20,
2008</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>11</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>Exhibit Index</B></FONT></P>

<P><FONT SIZE=2><B><U>Exhibit No</U>. </B></FONT></P>

<P><FONT SIZE=2>(a)(i) Notice
of Meeting and Definitive Proxy Statement of the Company (incorporated herein
by reference to the Proxy Statement filed with the Securities and Exchange
Commission on April 8, 2008). </FONT></P>

<P><FONT SIZE="2">(b)(i)
Revolving Loan Agreement dated December 23, 2002 between the Company and TD
Banknorth, N.A., successor to Hudson United Bank (<B>&#147;TD Banknorth&#148;</B>) (incorporated
herein by reference to Exhibit 4(c) to the Company&#146;s Annual Report on Form
10-K, File No. 1-5863, for the fiscal year ended June 30, 2003). </FONT> </P>

<P><FONT SIZE=2>(b)(ii) First
Amendment to Revolving Loan Agreement, Promissory Note and Other Loan Documents
dated October 23, 2003 between the Company and TD Banknorth (incorporated
herein by reference to Exhibit 4(d) to the Company&#146;s Annual Report on Form
10-K, File No. 1-5863, for the fiscal year ended June 30, 2005). </FONT></P>

<P><FONT SIZE=2>(b)(iii)
Second Amendment to Revolving Loan Agreement, Promissory Note and Other Loan
Documents dated October 23, 2003 between the Company and TD Banknorth
(incorporated herein by reference to Exhibit 4(a) to the Company&#146;s Quarterly
Report on Form 10-Q, File No. 1-5863, for the fiscal quarter ended March 31,
2005). </FONT></P>

<P><FONT SIZE=2>(b)(iv) Third
Amendment to Revolving Loan Agreement, Promissory Note and Other Loan Documents
dated September 22, 2006 between the Company and TD Banknorth (incorporated
herein by reference to Exhibit 10.01 to the Company&#146;s Current Report on Form
8-K, File No. 1-5863, dated September 26, 2006). </FONT></P>

<P><FONT SIZE=2>(b)(v) Fourth
Amendment to Revolving Loan Agreement, Promissory Note and Other Loan Documents
dated December 20, 2007 between the Company and TD Banknorth (incorporated
herein by reference to Exhibit 10.01 to the Company&#146;s Current Report on Form 8-K,
File No. 1-5863, dated December 21, 2007). </FONT></P>

<P><FONT SIZE=2>(c)(i) Opinion
of Houlihan Smith &amp; Company, Inc. dated November 28, 2007 (incorporated
herein by reference to Annex B of the Proxy Statement). </FONT></P>

<P><FONT SIZE=2>(c)(ii)
Presentation dated November 20, 2007 of Houlihan Smith &amp; Company, Inc. to
the Special Committee to the Board of Directors of the Company (incorporated by
reference to Exhibit (c)(ii) to the Company&#146;s initial Schedule 13E-3, File No.
5-13465, dated December 21, 2007). </FONT></P>

<P><FONT SIZE=2>(d)(i) Second
Amended and Restated Stockholders&#146; Agreement dated May 12, 2003 among the
Company and the persons listed on Schedule A thereto (incorporated by reference
to Exhibit (d)(i) to the Company&#146;s initial Schedule 13E-3, File No. 5-13465,
dated December 21, 2007). </FONT></P>

<P><FONT SIZE=2>(d)(ii)
Consent and Joinder Agreement dated August 10, 2004 among the Company, Mark
Nitzberg and the persons listed on Schedule A thereto (incorporated by
reference to Exhibit (d)(ii) to the Company&#146;s initial Schedule 13E-3, File No.
5-13465, dated December 21, 2007). </FONT></P>

<P><FONT SIZE=2>(d)(iii) Consent
and Joinder Agreement dated June 6, 2006 among the Company, Bruce Cahill, John
Halbreich, and the persons listed on Schedule A thereto (incorporated herein by
reference to Exhibit 10(l) to the Company&#146;s Annual Report on Form 10-K, File
No. 1-5863, for the fiscal year ended June 30, 2006). </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>12</FONT></P>

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