Changeover agreement between Marcolin and Luxottica for Dolce&Gabbana license

The Marcolin Group and the Luxottica Group have signed an agreement, approved by Dolce & Gabbana, for the 'friendly' changeover of the Dolce&Gabbana Eyewear and D&G Dolce&Gabbana Eyewear lines aimed at facilitating the transfer of distribution from Marcolin to the Luxottica Group to the advantage of all clients.

The chief benefit contemplated by this agreement is that from October 1, 2005, the Luxottica Group will start selling a significant part of the products, and ophthalmic eyewear in particular, currently produced and distributed by Marcolin. An understanding which will guarantee after-sales service has also been reached.

Although the contract will remain in the name of Marcolin until December 31, 2005, from 10/01/2005 and to12/31/2005 Luxottica Group will take over the sale of the Dolce & Gabbana Eyewear and D&G Dolce & Gabbana Eyewear lines and will pay the licensor the royalties due to Marcolin on billings for the reference period.

The agreement means that Marcolin will not have to pay Dolce & Gabbana the guaranteed minimum for the last quarter, estimated at around 1.8 million euros.

Not all markets will be affected by this agreement as until 12/31/2005 Marcolin's exclusive distributors will continue to distribute the Dolce&Gabbana Eyewear and D&G Dolce&Gabbana Eyewear lines in the United Arab Emirates, Qatar, Oman, Syria, Bahrain, Jordan, Japan, Korea, Australia and New Zealand.