Diego and Andrea Della Valle enter in Marcolin capital

On November 22 the members of the Marcolin family and Inmar International SA, the subsidiary owned by Giovanni Marcolin Coffen, transferred 5,528,749 shares, representing 12.184% of the share capital in Marcolin S.p.A., to DDV Partecipazioni Srl, the company owned by Diego Della Valle, and an additional 5,528,748 shares, representing 12.184% of the capital, to ADV Partecipazioni Srl, the company owned by Andrea Della Valle.

The subsequent implementation and regulation of the operation will take place by December 1, 2004, and will involve an outlay of approximately 5.114 million euros by DDV Partecipazioni Srl and by ADV Partecipazioni Srl.

Diego Della Valle shared the Marcolin family's wish to find shareholders who would bring new resources to the capital structure and to the company. They believe that its excellent technological know-how will provide the basis for strong industrial expansion and create significant synergies with the entrepreneurial scenario and with the luxury sector. Diego Della Valle stated: 'I believe the Marcolin company to be one of the best in the world in which it operates, both from an industrial aspect and from the point of view of the Group's enormous potential for growth. The excellent personal relationships of respect and trust that have been established with the Marcolin family, the leading protagonist of the sector, have certainly been crucial for the success of the operation'.

'I am very pleased to take part in this investment as I believe that the combination of the Marcolin family's entrepreneurial expertise in the eyewear sector, my brother's strategic vision, and my knowledge of the products and consumers in the high-quality world, are a mix of great potential and interest' Andrea Della Valle stated.

With the aim of facilitating the future redistribution of capital among changing generations of the Marcolin family and oriented toward supporting an increase in the shares held by the children, also on November 22 the consultation and block agreement between Inmar and the various members of the Marcolin family, and the shareholders' agreement between Inmar and the various members of the Marcolin family on the one side and Palladio on the other, were terminated.

The consensual termination of the two agreements will be published pursuant to the applicable legal and regulatory provisions.

On the completion of the above and once the acquisition by DDV Partecipazioni and ADV Partecipazioni has been fulfilled, Marcolin capital will be divided as follows:
- Marcolin family: 29.248;
- DDV Partecipazioni Srl: 12.184%;
- ADV Partecipazioni Srl: 12.184%;
- market: 46.384%.

No shareholders'agreement has been signed between the buyers, or between the latter and any members of the Marcolin family, with Inmar; neither has any shareholders' agreement been signed between the members of the Marcolin family. Therefore, no agreement has been reached concerning the composition of the Board of Directors, which will remain the same.

With the implementation of the above-described operations, the Marcolin family intends to achieve a series of objectives. Firstly, to acquire two top-level entrepreneurial figures for the corporate structure, on the assumption that there will be further development in Marcolin's business also as a result of the two investors' professionalism and experience in the luxury sector at national and international level. Secondly, to provide a corporate capital structure that will meet market expectations after the January 1, 2006, termination of the licensing agreement with Dolce&Gabbana, but one which will also guarantee Marcolin management continuity and ensure that the Marcolin family holds a significant 29.248% share of the share capital .

Brothers Cirillo and Maurizio Marcolin made the following comment: 'We are very pleased to have promoted the entry of new shareholders who certainly represent two of the world's major protagonists in the sector for the production and sale of luxury accessories. We share the same distinguishing philosophy of creating quality products with a distinctive image. Solid ground has therefore been prepared for Marcolin to acquire new and important licenses and to guarantee significant development for those already in our portfolio'.