Safilo and Banana Republic sign a license agreement for eyewear

The Safilo Group (MTA: SFL), a world leader in the sector of luxury and top-of-the-range eyewear, and Banana Republic, an 'accessible luxury' brand by Gap Inc. (NYSE:GPS), today announced the signing of a license agreement for the collection of frames for eyeglasses and sunglasses with the Banana Republic brand. The agreement includes the design, development, production and distribution of the collection that will be launched by the end of 2007 in the United States and Canada.

'We are very pleased to start this new and exciting partnership with one of the top brands of the largest company in the world in the clothing sector,' declared VittorioTabacchi, President of the Safilo Group. 'This license with a modern and prestigious, luxury brand that is also accessible fits in perfectly with our brand portfolio.

So, this new agreement gives us a wonderful opportunity to offer the important North American market an eyewear collection with one of America's most well-known names in the young sector, for men and women, where Safilo has always played a primary role.'

The terms of the international agreement include a commitment of 5 years with the option to renew for another three years. With this agreement, Banana Republic will also sell its products, for the first time, outside its own sales channel.

'We shall continue to develop Banana Republic as a brand that represents a lifestyle and eyewear is simply a natural development of our strategies ' declared the Chairman of Banana Republic, Marka Hansen,. 'Safilo is an exceptionally creative company with great experience in the design, production and distribution of eyewear, also thanks to working with many of the international brand leaders in the luxury sector. Safilo's ability to transform the concept of eyewear into a luxury product fits in perfectly with our expertise in expanding Banana Republic's range of products. Our customers have welcomed our bags, our line of jewelry and the new line of personal care products with enthusiasm, and we are confident that they will also particularly appreciate the new eyewear collection.'

Banana Republic will play a very important role in Safilo's brand portfolio, which includes many of the most prestigious, luxury names on the international fashion scene. Safilo's great ability in designing and developing eyewear enabled Banana Republic to aim at a new target of consumers and enter new distribution channels, such as prestigious optical stores and exclusive department stores.

Banana Republic will also sell eyewear in its own sales points to further strengthen the growing success of the brand's other 'non-apparel' goods, such as bags, jewelry, shoes and perfume products.