AGREEMENT AND PLAN OF MERGER



                  Dated as of April 13, 2001





                            Among



                  JONES APPAREL GROUP, INC.,





                    MCN ACQUISITION CORP.





                             And



                MCNAUGHTON APPAREL GROUP INC.











=============================================================





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                      TABLE OF CONTENTS



                                                         Page



                          ARTICLE I



                          The Merger



SECTION 1.01.  The Merger...................................1

SECTION 1.02.  Closing......................................2

SECTION 1.03.  Effective Time...............................2

SECTION 1.04.  Effects of the Merger........................2

SECTION 1.05.  Certificate of Incorporation and By-laws.....3

SECTION 1.06.  Directors....................................3

SECTION 1.07.  Officers.....................................3





                          ARTICLE II



      Conversion of Securities; Exchange of Certificates



SECTION 2.01.  Conversion of Capital Stock..................3

SECTION 2.02.  Anti-Dilution Provisions.....................5

SECTION 2.03.  Exchange of Certificates.....................6

SECTION 2.04.  Adjustment..................................10





                         ARTICLE III



                Representations and Warranties



SECTION 3.01.  Representations and Warranties of

                 the Company...............................10

SECTION 3.02.  Representations and Warranties of

                 Parent and Sub............................34





                          ARTICLE IV



          Covenants Relating to Conduct of Business



SECTION 4.01.  Conduct of Business.........................39

SECTION 4.02.  Conduct of Business by Parent...............44

SECTION 4.03.  No Solicitation.............................45





                          ARTICLE V



                    Additional Agreements



SECTION 5.01.  Preparation of the Form S-4 and

                 the Proxy Statement/Prospectus;

                 Stockholders Meeting......................49

SECTION 5.02.  Letters of the Company's Accountants........50





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                                                           ii



SECTION 5.03.  Letters of Parent's Accountants.............50

SECTION 5.04.  Access to Information; Confidentiality......51

SECTION 5.05.  Commercially Reasonable Efforts;

                 Notification..............................51

SECTION 5.06.  Company Stock Options.......................53

SECTION 5.07.  Indemnification, Exculpation and

                 Insurance.................................56

SECTION 5.08.  Fees and Expenses...........................57

SECTION 5.09.  Information Supplied........................58

SECTION 5.10.  Employee Benefit Matters....................59

SECTION 5.11.  Public Announcements........................60

SECTION 5.12.  Affiliates..................................60

SECTION 5.13.  Stock Exchange Listings.....................60

SECTION 5.14.  Tax Treatment...............................61

SECTION 5.15.  Rights Agreement............................61

Section 5.16.  Transfer Taxes..............................61

SECTION 5.17.  Parent Board of Directors...................61





                          ARTICLE VI



                     Conditions Precedent



SECTION 6.01.  Conditions to Each Party's Obligation

                 to Effect the Merger......................62

SECTION 6.02.  Conditions to Obligations of Parent

                 and Sub...................................62

SECTION 6.03.  Conditions to Obligation of the Company.....64





                         ARTICLE VII



              Termination, Amendment and Waiver



SECTION 7.01.  Termination.................................65

SECTION 7.02.  Effect of Termination.......................66

SECTION 7.03.  Amendment...................................67

SECTION 7.04.  Extension; Waiver...........................67





                         ARTICLE VIII



                      General Provisions



SECTION 8.01.  Nonsurvival of Representations

                 and Warranties............................68

SECTION 8.02.  Notices.....................................68

SECTION 8.03.  Definitions.................................69

SECTION 8.04.  Interpretation..............................69

SECTION 8.05.  Counterparts................................70





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                                                          iii



SECTION 8.06.  Entire Agreement; No Third-Party

                 Beneficiaries.............................70

SECTION 8.07.  Governing Law...............................70

SECTION 8.08.  Assignment..................................70

SECTION 8.09.  Consent to Jurisdiction.....................71

SECTION 8.10.  Waiver of Jury Trial........................71

SECTION 8.11.  Enforcement.................................72





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                         AGREEMENT AND PLAN OF MERGER dated

                    as of April 13, 2001, among JONES APPAREL

                    GROUP, INC. , a Pennsylvania corporation

                    ("Parent"), MCN ACQUISITION CORP., a

                    Delaware corporation and a direct wholly

                    owned subsidiary of Parent ("Sub"), and

                    MCNAUGHTON APPAREL GROUP INC., a Delaware

                    corporation (the "Company").





          WHEREAS the Board of Directors of each of the

Company and Sub has approved and declared advisable, and the

Board of Directors of Parent has approved, this Agreement and

the merger of the Company with and into Sub, upon the terms

and subject to the conditions set forth in this Agreement

(such transactions or the alternative transaction referred to

in Section 1.01 being referred to hereinafter as the

"Merger"), whereby each issued and outstanding share of

Common Stock, par value $0.01 per share, of the Company (the

"Company Common Stock") not directly owned by Parent, Sub or

the Company (other than Appraisal Shares (as defined in

Section 2.01(b))), will be converted into the right to

receive the Merger Consideration (as defined in Section

2.01(a)(iii));



          WHEREAS for United States federal income tax

purposes, it is intended that the Merger shall qualify as a

reorganization within the meaning of Section 368 of the

Internal Revenue Code of 1986, as amended (the "Code"); and



          WHEREAS Parent, Sub and the Company desire to make

certain representations, warranties, covenants and agreements

in connection with the Merger and also to prescribe various

conditions to the Merger.



          NOW, THEREFORE, in consideration of the foregoing

and the representations, warranties, covenants and agreements

set forth herein, the parties hereto agree as follows:



                          ARTICLE I



                          The Merger



          SECTION 1.01. The Merger. Upon the terms and

subject to the conditions set forth in this Agreement, and in

accordance with the General Corporation Law of the State of

Delaware ("DGCL"), the Company shall be merged with and into

Sub at the Effective Time (as defined in Section 1.03). At

the Effective Time, the separate corporate existence of





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                                                            2



the Company shall cease and Sub shall continue as the

surviving corporation (the "Surviving Corporation") in the

Merger and shall succeed to and assume all the rights and

obligations of the Company in accordance with the DGCL. At

the election of Parent, any other direct wholly owned

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