The Board of Directors of Marcolin approves the results as at 30 September 2006

Billing: 113,042 thousand euros (118,041 thousand euros as at 30 September 2005, -4.2%; +34.6% on a like-for-like basis)
Ebitda: 4,818 thousand euros (1,434 thousand euros as at 30 September 2005)
Ebit: 207 thousand euros (-4,264 thousand euros as at 30 September 2005)
Net result: -4,687 thousand euros (-7,902 thousand euros as at 30 September 2005)
Net Financial Standing: -51,732 thousand euros (-45,884 thousand euros as at 30 September 2005)

The Board of Directors of Marcolin S.p.A. chaired by Giovanni Marcolin Coffen approved today the Report for the Marcolin Group as at 30 September 2006, the full version of which is available on the Company's internet site (www.marcolin.com) from the date of being deposited.

Compared to the same period in the previous year, the Group registered a reduction in billing equal to 4,999 thousand euros, which, expressed as a percentage, is equivalent to a 4.2% decrease (a -4.9% decrease with constant exchange rates).
A considerable profit can be seen (+92.9%) net of the results of the Dolce & Gabbana lines; on a like-for-like basis, excluding the contribution of the new licenses, the growth was equal to 34.6%.
There was a considerable recovery in sales thanks to the excellent results of the new fashion lines Tom Ford Eyewear and Just Cavalli Eyewear, which were launched at the end of the year 2005, and Ferrari and Web Eyewear (the sales of which were started during the second quarter 2006) together with the excellent trend of the lines Roberto Cavalli Eyewear, Montblanc Eyewear, Miss Sixty Glasses, Replay Eyes and Timberland.

The sales by geographical area may be broken down as follows:

With reference to the sales of the main subsidiaries, compared to the previous period in 2005, expressed in American dollars, Marcolin USA registered an increase in billing of 3.2%, mainly due to the increase in sales from the Kenneth Cole and Timberland lines, while Cébé's profits were basically in line (+2%).

The EBITDA, which is gradually increasing, is positive, and equal to 4,818 thousand euros (equal to 4.3% of the billing), compared to 1,434 thousand euros (1.2% of the billing) as at 30 September 2005.

The EBIT represents 0.2% of the billing (- 3.6% as at 30 September 2005) and corresponds to 207 thousand euros (negative by 4,264 thousand euros as at 30 September 2005).

The improved marginality is largely due to the greater profitability on sales from the lines and the positive effects of the commercial and productive reorganization of the parent company and the main subsidiaries, with a consequent reduction in costs.

Marcolin USA made a substantial improvement in all of the main economic indicators as the result of a positive change in the sales mix. At the end of the period, a positive Ebitda was registered, equal to 910 thousand euros, compared to a negative figure of 2,000 thousand euros as at 30 September 2005.Cébé's Ebitda was negative by 3,086 thousand euros (negative by 3,377 as at 30 September 2005), influenced by the seasonal nature of the sales. The result also takes into account the costs sustained for the warehouse depreciation, as a result of the renewal of the models and the commercial, organizational, strategic reorganization process, which is currently underway.

The net result of the period is negative by 4,687 thousand euros, but it is a considerable improvement on the previous year (negative by 7,902 thousand euros as at 30 September 2005).

The economic data for the third quarter 2006 show a gradual, progressive improvement in the Company's main performance indicators. In particular:
• profits from sales were equal to 30,349 thousand euros, compared to 29,839 thousand euros in the third quarter of 2005, with an increase of 1.7% (+92.8% net of the results of the Dolce & Gabbana lines);
• the EBITDA is equal to 1,219 thousand euros (negative by 4,437 thousand euros in the third quarter 2005), with a percentage incidence on the billing equal to 4.0% (-14.9% in the third quarter 2005);
• the EBIT is equal to 76 thousand euros (negative by 5,535 thousand euros in the third quarter 2005), with an improvement of 5,611 thousand euros and a percentage incidence on the billing equal to 0.3% (-18.5% in the third quarter 2005);
• the net result is negative by 1,010 thousand euros (with an improvement of 4,803 thousand euros compared to the third quarter 2005).

For the second quarter running a positive result was recorded in the operative management confirming the validity of the action, still underway, which was started in the previous months. This result is even more significant, if we consider the seasonal nature of the quarter, which weighs an average of approximately 18% on the annual billing.

The change in the net financial standing equal to 5,554 thousand euros compared to the figures as at 31 December 2005, is partly due to factors of a seasonal nature, to an increase in unsold stock due to the production of the new recently presented models and also to investments equaling 2,649 thousand euros, especially in production machinery.

Important factors, which occurred at the end of the quarter and the management's predictable progress.

The parent company Marcolin S.p.A. received the authorization from Consob (Securities and exchange Commission) to publish the Prospectus relating to the increase in capital, the terms and conditions of which were approved by the Board of Directors on 30 October 2006.
The increase in capital consists of issuing a maximum no.16,761,375 new ordinary shares, to be offered as an option to shareholders, with 3 new shares for every 8 owned, at a unit price of 1.78 euro, 1.26 euro of which by way of overcharge. Therefore, the maximum equivalent of the increase amounts to 29,835,247.50 euro.The offer will start this coming 13 November 2006 and will end on 1 December 2006.
The operation is aimed at increasing capital to improve the debt/equity ratio and rebalance the sources of financing, as well as give the possibility to have new financial resources for the Group's overall development and, in particular, for developing the licenses currently in the portfolio, purchasing new licenses and expanding the internal productive capacity to meet the increased demand for 'Made in Italy' products.

An analysis of the billing data made by the Group in October confirms the positive sales growth trend recorded as at 30 September 2006 and the important contribution made by the new lines in the portfolio.

In relation to the management's predictable progress, the year 2006 will be characterized by a significant recovery in billing and marginality. It is estimated that the Group's net result, although negative, will be a considerable improvement on the year 2005.
The last quarter will not suffer negative effects similar to those generated in the same period of the year 2005 due to the conclusion of the relationship with Dolce & Gabbana.

The General Manager Antonio Bortuzzo commented: 'The significant growth in billing for the brands already in the portfolio and for the recently purchased licenses has enabled the Group to make a significant recovery in marginality sooner than expected.
The increase in capital will also provide new financial resources to be used for the Group's growth'.