Marcolin: six-month approval and change in US top-management

The Board of Directors of the Marcolin Group approved the six-monthly report at June 30, 2003. For the first six months of the year, consolidated billings were approximately 84,525 thousand euros, compared to around 89,598 thousand euros for the first six months of the previous financial year, a drop of 5.7%. At the exchange rate for the first six months of 2002, the Group's sales would have shown an increase of approximately 1%.

The sales analysis by geographical area showed that the trend was good on the domestic market, with a 25.1% increase, and in the rest of Europe, where growth was 17.2% thanks to the confirmed success of the Dolce & Gabbana, D&G Dolce & Gabbana and Roberto Cavalli lines, especially on the Spanish, British and German markets.

A stronger euro, the international geo-political context and poor consumer spending recorded on the American market, influenced the results for the US subsidiary whose revenues, at constant exchange rates, fell by about 29.4%.

The Ebitda value represents 9.1% of turnover (11.1% at June 30, 2002) and corresponds to 7,731 thousand euros (9,923 thousand euros at June 30, 2002). Also with reference to these values, the lower result is mainly due to the non-positive trend of the American subsidiary which, compared to the same period last year, recorded a negative Ebitda.

The Group's pretax profits for the first six months of 2003 were approximately 63 thousand euros. At 39.8 million euros, the Group's net financial position is substantially unchanged compared to December 31, 2002.

The six-monthly data for Marcolin SpA showed considerable growth in turnover, which was approximately 46,484 thousand euros (37,182 thousand euros at June 30, 2002), and an Ebitda of 8,019 thousand euros (5,898 thousand euros at June 30, 2002).

A series of restructuring activities aimed at reducing general costs and improving margins are underway at the American subsidiary. Given the good performance registered in the rest of the world, the parent company's Directors believe that the priority is to improve profitability at the US subsidiary.

With this in mind, the Marcolin Group has appointed its General Manager, Antonio Bortuzzo, as Chief Executive Officer of the Marcolin Usa subsidiary, after the resignation of Paul Diaz. The appointment has been effective since September 15.

'I feel very honored by the Board's faith in me to direct Marcolin Usa. My initial and immediate efforts will focus on working with the American management team on the actions needed to develop an even stronger presence of our brands on the American market, and to ensure the company's growth and profitability', Antonio Bortuzzo stated.

With this new management, Marcolin Usa has confirmed its strong orientation towards the US market for Fashion and Luxury lines (Dolce & Gabbana Eyewear, D & G Dolce & Gabbana Eyewear, Roberto Cavalli Eyewear, Montblanc Eyewear) and the American brands in its portfolio, which include the new Kenneth Cole license acquired for the production and distribution of sunglasses for Department Stores.

Maurizio Marcolin, Chief Executive of the Group's style and license area and President of Marcolin Usa, as head of the Italian style office situated near Treviso, and of the design management team in Miami (Florida, Usa), will ensure that all product requirements for the American market will be met for the Fashion, American and Sport lines.