Marcolin: +17.4% in the first 9 months of 2007

Chaired by Giovanni Marcolin Coffen, the Marcolin S.p.A. Board of Directors met today to examine and approve the Quarterly Report for the Marcolin Group at September 30, 2007.

The Group's billings at September 30, 2007, were 132.7 million euros, an increase of 19.7 million euros compared to the same period last year. In percentage terms, the increase was 17.4% (19.8% at constant exchange rates) and was achieved thanks to the good performance of all the lines in the portfolio and the Tom Ford, Roberto Cavalli and Montblanc lines in particular.
There was a significant increase in billings in Europe (excluding the Italian market) compared to September 30, 2006 (27.8%), in the rest of the world (27.8%) and in the United States (13.4%). In detail, in Europe the biggest increases were in the French (+74%, excluding Cébé), German (+53%), Spanish (+33%) and British (+19%) markets; elsewhere, the main increases were in the Arab Emirates, Turkey, Brazil and Russia. The Group's main companies showed an increase of 9.5% in billings by Marcolin Usa (+18.3% at constant exchange rates) and a 19.5% falloff in revenues from sales by Cébé.

EBITDA was 10.1 million euros (5.3 million euros at September 30, 2006), the equivalent of 7.6% of billings (4.6% during the same period 2006). EBIT stood at 1.7 million euros (0.2 million euros at September 30, 2006) representing 1.3% of billings (0.2% at September 30, 2006).The Group's overall improved financial results are mainly due to a growth in billings, with the consequent greater absorption of fixed and structural costs, as well as improved efficiency achieved by all the companies in the Group. Cébé, however, recorded a negative EBITDA of 4 million euros (-3.1 million euros at September 30, 2006) and a negative result of 4.7 million euros (-3.8 million euros at September 30, 2006), plus a 2.9 million euro reduction in the fair value of Cébé assets and liabilities due to be transferred.Excluding the Cébé effect, at September 30, 2007, the Group's EBITDA stood at 17 million euros (8.3 million euros at September 30, 2006) with a positive net result of 4.5 million euros (a loss of 0.9 million euros at September 30, 2006), a net improvement compared to the same period of the previous financial year. The negative net result for the period was 3 million euros (2.3% of billings) compared to a negative value of 4.7 million euros at September 30, 2006 (4.1% of billings).

Revenues from sales were 28.7 million euros against 30.3 million euros for the third quarter of 2006, a downturn of 5.4% (-2.8% at constant exchange rates) caused mainly by the falloff in Cébé revenues. With regard to Marcolin S.p.A., a comparative analysis of billings for the third quarter showed that they were significantly affected by the abnormal distribution of deliveries during 2006. During the first six months of 2006, deliveries were fewer due to production restrictions which prevented orders from being completely fulfilled; these were recovered and billed in the third quarter. This phenomenon means that the comparison between the data for the two quarters is of little significance. A negative EBIT of 1.3 million euros (+0.1 million euros for the third quarter 2006) represented 4.4% of billings (0.2% in the third quarter 2006); this result was influenced by higher fixed costs. EBITDA of 0.3 million euros (1.4 million euros in the third quarter 2006) represented 1.1% of billings (4.6% in the third quarter 2006).The net result was negative at 1.1 million euros (-1.0 million euros in the third quarter 2006).

The net financial position was negative at 31.7 million euros and remains essentially unchanged against December 31, 2006. Compared to the figure at September 30, 2006 (-51.7 million euros), the improvement is 20.1 million euros, due especially to the increase in capital stock completed during December 2006.With reference to the sun and vision segment, financial year 2007 will be characterized by an overall increase in the Group's billings and margins compared to the previous year. In the sport segment (Cébé), the difficulties encountered during 2006 will continue. Acquisition offers received from third parties will continue to be evaluated at the same time as completing the analysis aimed at downsizing operations. During the meeting, director Matteo Tamburini tendered his resignation in order to limit the number of appointments covered in listed companies; the Board therefore deliberated on the co-option of Vito Varvaro, a non-executive director. Mr. Varvaro was president and chief executive of Procter & Gamble in Italy and is currently Director of Operations and Development at Diego Della Valle & C. Sapa.

Managing Director Antonio Bortuzzo commented:'The results achieved by the Group are more than satisfactory in terms of the growth in billings and margins, despite the problems with Cébé, a solution for which is being actively sought by management. The positive trend in growth is confirmed by the current size of the order portfolio'.