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Katie Holmes to Unveil Clothing Line

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Mar. 19 2008, Published 10:00 a.m. ET

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OK! was the first to reveal that was working on her own clothing label, with hopes to introduce it by year's end.

Now, OK! can confirm that Mrs. Tom Cruise has indeed closed the deal for her first line, to be called: Katie Holmes for Armani. It's a first and rather unheard of marriage — never before has such a high-fashion house had a label affiliation with a non-professional designer. "Right now this is Katie's life," a source close to the Cruises tells OK!. "She is extremely excited about it."

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Katie's muse in her new endeavor is none other than her daughter, Suri, who turns 2 next month. As OK! previously reported, Katie, 29, designed the adorable polka-dot dress the toddler was photographed wearing in Paris last year. "The first clothes will all be things she could imagine Suri wearing," confirms the source.

The line will roll out over the course of the next two years, starting with a collection aimed at toddlers for spring 2009. A collection for older children will follow that fall, followed by a handbag line and a women's collection by fall of 2010.

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"The Katie Holmes for Armani collection will be comparable in price to the Armani ready-to-wear line," the source says. "It will be sold in stores like Saks, Barneys New York and Neiman Marcus. We're talking very upscale: less expensive than Armani Privé but more than Armani Exchange. These are going to be very high-quality clothes. We're not talking cheesy Jessica Simpson stuff."

And where does hubby Tom fit into the project? "He is her number-one fan," the source says, adding that Katie still intends to continue acting. "Katie's dedication to fashion does not mean she's given up her acting career," the source says. "She definitely wants to continue with that too, but right now this is her priority.

For the entire scoop on Katie's new clothing line, pick up the new issue of OK! — on sale everywhere on Thursday!

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