Domenico De Sole and Tom Ford will leave Gucci

Gucci Group NV and Pinault-Printemps-Redoute today announced that Domenico De Sole, President and Chief Executive Officer of Gucci Group and Tom Ford, Creative Director of Gucci Group and the Gucci and Yves Saint Laurent brands, have informed the Supervisory Board of Gucci Group that they do not intend to extend their contracts beyond their currently scheduled expiration date in 2004.

This decision follows several months of negotiations in anticipation of the expiration of their contracts and Pinault-Printemps-Redoute's previously announced tender offer for the outstanding shares of Gucci Group at a price of $85.52 per share to be completed in April 2004. Intensive efforts by the parties did not result in an agreement satisfactory to all concerned and, therefore, the parties concluded that the completion of the tender offer and the expiration of the executives' employment agreements was the appropriate time for a change in senior management.

Domenico De Sole and Tom Ford have confirmed their commitment to remain in their positions until April, 30 2004 in order to ensure the success of the coming collections and a smooth transition. The independent members of the Supervisory Board have agreed to continue to serve on the Board until that date. Gucci Group's Supervisory Board has established a Committee chaired by Serge Weinberg, Chairman of the Management Board of Pinault-Printemps-Redoute, and including Adrian Bellamy, Chairman of the Gucci Group Supervisory Board, and François Henri Pinault, Chairman of Artemis, to select successors to Messrs. De Sole and Ford.

'The members of the Supervisory Board and I owe a huge debt of gratitude to both Domenico and Tom', said Adrian Bellamy. 'Naturally, we regret their decision, but we understand their reasons. It takes insight, discipline and exceptional talent to compete, excel and remain at the top in this business, as is the case with Domenico and Tom. Domenico has managed the company with precision always maintaining the correct balance of devotion to shareholders and colleagues alike. Tom's exceptional creative talent and business acumen have earned the respect of everyone in the industry. Theirs has been the classic partnership in fashion: they will be sorely missed. On behalf of the entire Supervisory Board, we wish them well'.

'Gucci has been one of the great loves of my life', said Domenico De Sole, 'and my years with the Company have been an incredible journey. I would like to thank Tom, whose creative genius has made it all possible, as well as our extraordinary colleagues around the world. Thanks to their skill and dedication, we have been able to convert the small and troubled company I joined in 1984 into a world class luxury powerhouse, and in the process to create significant wealth for all our stakeholders. We owe a special word of thanks to Adrian Bellamy and the other members of the Supervisory Board, whose wisdom and steadfast support have been critically important on many occasions. I will continue until my departure to devote my energies to our Company, whose prospects in our view have never been more promising. I am confident that our successors will build on the strong foundations that we will be leaving to them'.

'It is with great sadness that I contemplate my future without Gucci Group', said Tom Ford. 'For the past 13 years, this company has been my life. I am confident that we are leaving behind one of the strongest teams in the industry and I will do my best in my remaining time within the company to ensure the future success of the Group. I could not be more proud of our work at Gucci or more proud of the exceptional team of colleagues that have contributed more than just their hard work; they have given their hearts in our quest for excellence. I am grateful to have had the opportunity to have shared the joy of success with such an outstanding group of individuals. I would like to thank Domenico for his extraordinary leadership, constant support and his friendship. I would also like to thank the members of the Supervisory Board and the entire staff of Gucci Group for their hard work and dedication.'