Marcolin: excellent sales results and return to profitability

Billings: 53.7 million euros (40.8 in 2006; a 31.4% increase);
EBITDA: 7.2 million euros (1.4 million in 2006);
EBIT: 5.9 million euros (-0.8 million in 2006);
Net result: 2.4 million euros (-1.9 in 2006);
Net financial position: - 30.9 million euros (- 45.4 million in 2006).

At the meeting of May 11, the Marcolin S.p.A. Board of Directors chaired by Giovanni Marcolin Coffen, examined and approved the Marcolin Group's report on the first quarter 2007.

BILLINGS
The Group's net consolidated income for the first quarter 2007 was 53.7 million euros, a substantial increase of 31.4% compared to the same period 2006 (40.8 million euros). This confirms the validity of the steps taken by management and demonstrates the constant progress that is being made compared to the results for 2006.
The considerable increase in income from sales was achieved thanks to billings from the main lines in the portfolio and, in particular, from Roberto Cavalli Eyewear and Montblanc Eyewear, in addition to those from Tom Ford Eyewear, Just Cavalli Eyewear, Ferrari and Web Eyewear, which were launched more recently.
The upturn in billings was general in all the main markets in which the Group operates. The only exception was the subsidiary Cébé, which recorded a downturn in income from sales (0.8 million euros); this was also due to a negative trend during the winter because of unfavorable weather conditions.

Sales by geographical area are as follows:

OPERATING RESULT
EBITDA stood at 7.2 million euros (1.4 million euros at March 31, 2006), equal to 13.4% of billings (3.4% for the same period 2006).
EBIT was 5.9 million euros (-0.8 million euros at March 31, 2006) or 11% of billings (-1.9% at March 31, 2006);
The considerable improvement in the Group's overall financial results was mainly due to growth in billings with the consequent increased absorption of fixed and structure costs. This is in addition to the improved efficiency achieved by almost all the companies in the Group following the production and commercial reorganization carried out over the last two financial years.
As forecast, the difficulties Cébé is facing on the market have led to a downturn in sales margins which in turn produced a negative EBITDA of 0.6 million euros (it was almost level at March 31, 2006).

NET RESULT
The net result for the period was positive at 2.4 million euros (4.4% of billings), a clear improvement compared to the figure at March 31, 2006 (-1,9 million euros).

NET FINANCIAL POSITION
The Group's net financial indebtedness at March 31, 2007, was 30.9 million euros (45.4 million euros at March 31, 2006), an improvement of 1.1 million euros compared to December 31, 2006, which was mainly generated by cash flow from operations.

Antonio Bortuzzo, Chief Executive and General Manager of Marcolin S.p.A., commented: 'During the first quarter of this year, the Group's results were very satisfactory in terms of growth in billings and the improvement in profitability. These results were achieved thanks to the contribution made by all the collections in the portfolio and they confirm the validity of the steps taken by management. At the moment, we are focusing our attention on the subsidiary company, Cébé. We aim to pursue the divestment process and to set up a plan for re-launching the Cébé brand which will make its management more remunerative'.