Luxottica Group Signs Landmark Ten-Year, US$1.75 Billion Eyewear Licence Agreement with Polo Ralph Lauren

Luxottica Group Signs Landmark Ten-Year, US$1.75 Billion Eyewear Licence Agreement with Polo Ralph Lauren

February 27, 2006

 
    MILAN, Italy, Feb. 27 /Xinhua-PRNewswire/ -- Luxottica
Group (NYSE: LUX; MTA: LUX), the global leader in the
premium and luxury eyewear sector, announced today a
ten-year licence agreement with Polo Ralph Lauren Corp.
(NYSE: RL) 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 wholesale-retail 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." 

    About Luxottica Group S.p.A.

    Luxottica Group is a global leader in eyewear, with
nearly 5,500 optical and sun retail stores mainly in North
America, Asia-Pacific and China and a well-balanced
portfolio that comprises leading premium house and licensed
brands, including Ray-Ban, the best selling sun and
prescription eyewear brand in the world.  Among others, the
Group's brand portfolio includes house brands Vogue, Persol,
Arnette and REVO and license brands Bvlgari, Burberry,
Chanel, Dolce & Gabbana, Donna Karan, Prada, Versace
and Polo Ralph Lauren, from January 2007.  Luxottica
Group's global wholesale network touches 120 countries,
with a direct presence in the key 28 eyewear markets
worldwide.  The Group's products are designed and
manufactured at its six Italy-based high-quality
manufacturing plants and at the only China-based plant
wholly-owned by a premium eyewear manufacturer.  For fiscal
year 2005, Luxottica Group posted consolidated net sales and
net income of euro 4.3 billion and euro 342.3 million,
respectively. Additional information on the Group is
available at http://www.luxottica.com .

    Safe Harbor Statement

    Certain statements in this press release may constitute
"forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995.  Such
statements involve risks, uncertainties and other factors
that could cause actual results to differ materially from
those which are anticipated.  Such risks and uncertainties
include, but are not limited to, fluctuations in exchange
rates, economic and weather factors affecting consumer
spending, the ability to successfully introduce and market
new products, the availability of correction alternatives
to prescription eyeglasses, the ability to successfully
launch initiatives to increase sales and reduce costs, the
ability to effectively integrate recently acquired
businesses, including Cole National, risks that expected
synergies from the acquisition of Cole National will not be
realized as planned and that the combination of Luxottica
Group's managed vision care business with Cole National
will not be as successful as planned, the impact of the
application of APB 25 (Accounting for Stock Issued to
Employees) and, as of January 1, 2006, the adoption of SFAS
123 (R) as well as other political, economic and
technological factors and other risks referred to in
Luxottica Group's filings with the U.S. Securities and
Exchange Commission.  These forward-looking statements are
made as of the date hereof and Luxottica Group does not
assume any obligation to update them.

    For more information, please contact:

     Luca Biondolillo
     Head of Communications of Luxottica Group S.p.A.
     Email:   [e-mail]

     Alessandra Senici
     Senior Manager, Investor Relations of Luxottica Group
S.p.A.
     Tel:    [phone]     
     Email:  [e-mail],

SOURCE  Luxottica Group S.p.A.