Moulin gives up on Cole but explores other opportunities

Following a press release issued by Cole National Corporation on July 22, 2004 announcing that the stockholders had voted to approve the merger agreement between Cole and Luxottica, Moulin formally announced that the Group will not at this time proceed with its proposed bid.

Mr. Cary Ma, Chief Executive Officer of Moulin, said, 'We have always considered a price of US$ 25 per share to be a reasonable valuation of the company, and therefore it is not in the interest of Moulin or it's shareholders to pursue a higher bid'. Mr. Ma continued, 'The substantial efforts made during the Cole acquisition process have demonstrated Moulin's capabilities and resources which we will use to pursue other attractive investment and acquisition opportunities. We are proud of our efforts and look forward to the next opportunity'.

Mr. Ma Bo Kee, Chairman of Moulin, added: 'Moving downstream into the retail sector is an important growth strategy in our international arena. Going forward, we will continue to aggressively explore possible acquisition, merger and/or business combination opportunities in the optical retail market. Expansion into retail will allow the company to control the entire supply chain network, creating substantial synergies that can secure long-term profitability'.