Safilo turnover and profits growing in 2004

Safilo Group has announced its consolidated results for 2004 which highlight a substantial growth in both turnover and all the other main economic indicators. Furthermore, the Group has succeeded in reacting positively to the challenging market environment by sealing further license agreements and confirming the Group's world-wide leadership in the luxury eyewear sector.

Main economic indicators for 2004:
- Group's consolidated turnover: € 940 million;
- Ebitda: € 150,3 million;
- Net profit: € 19,8 million (an improvement of € 30,8 million compared to 2003).

Consolidated turnover amounted to 940 million Euro, an increase of 8.5% compared to 2003 at fixed exchange rates and 4.4% at current exchange rates. The Group has experienced growth in all the main international markets with particularly positive results achieved in the Far East (an increase of over 30% despite the negative exchange rate), and in North America (+10% at fixed exchange rates). European markets also performed well and registered an increase of +4.5%.

The success of measures aimed at increasing profitability have lead to a considerable increase in the Group's operating results which in turn have offset negative effects resulting from the persistent weakness of the US Dollar. Ebitda for 2004 reached 150,3 million Euro, an increase of 14% compared to the previous year. The results achieved in the final quarter of the year were especially significant, with an Ebitda value 23% higher than the same period of 2003.

The Group's net debt position continues to improve and at the end of 2004 was equal to 758 million Euro, or 39 million Euro lower than at the end of 2003.

Vittorio Tabacchi, Chairman of Safilo Group, in commenting on the results achieved, stated: '2004 has been a particularly important and positive year for Safilo: we have pursued with determination our aim to consolidate our position as world-wide leader in the luxury eyewear sector and we have been awarded by a strong performance. All the economic indicators have improved significantly, confirming the effectiveness of the industrial and financial strategies adopted and increasing our confidence in achieving ever more positive results. We expect to gain further market share in 2005: client orders in the initial months of the year confirm a positive sales trend, particularly for the American and Far East markets. We also expect significant growth in sales of our house brand collections as a result of an increased focus in terms of product, marketing and communication'.