Luxottica signs ten-year eyewear licence agreement with Polo Ralph Lauren

Luxottica Group announced today a ten-year licence agreement with Polo Ralph Lauren Corp. for the design, production and worldwide distribution of prescription frames and sunglasses under the Polo Ralph Lauren name.

The agreement, which will begin on January 1, 2007, is estimated to be worth for Luxottica Group in excess of US$ 1.75 billion in sales over its duration. Terms include an advance payment on royalties of US$ 199 million that will mature over the ten-year term of the agreement.

Leonardo Del Vecchio, chairman of Luxottica Group, commented: 'We are extremely pleased to start 2006 with the announcement of a landmark agreement with one of the world's leading brands. Polo Ralph Lauren is truly a global brand and a perfect fit for our integrated approach to wholesaleretail distribution. We have high expectations for what Polo Ralph Lauren and Luxottica will accomplish together in years to come. Our partnership will especially benefit from our ability to support brands through a worldwide retail network'.

Safilo Group too today confirmed that its licence agreement for the manufacture and distribution of Ralph Lauren branded eyewear will expire on December 31st 2006. Vittorio Tabacchi, Chairman of Safilo Group, commented: 'During the negotiations for the renewal of the licence agreement significant differences became apparent which prevented us from reaching an agreement which was in line with our reciprocal interests. The consistency in terms of profitability of our licensed brands and the fundamental principle according to which royalties are not paid in advance remain the pillars on which the strategy of our company will continue to be based'. Safilo Group also communicates that negotiations are taking place both to expand existing licences to include other brands, and to sign new worldwide licence agreements.