NEW YORK–(BUSINESS WIRE)–Feb. 27, 2006–Polo Ralph Lauren Corporation
(NYSE: RL) today announced that it has entered into a long-term licensing
agreement with Luxottica Group, S.p.A. of Milan for the design, production
and worldwide distribution of prescription frames and sunglasses under the
Polo Ralph Lauren brand. The agreement is effective January 1, 2007 and the
new collection will be available in early 2007.

“This new agreement is another key strategic step in the development of our
worldwide luxury accessories business as we take this important fashion
category and aggressively extend it over the long term,” said Ralph Lauren,
Chairman and Chief Executive Officer. “Luxottica stands apart in the
industry because of their expansive international presence and their
commitment to extensive vertical retail stores. This makes them the ideal
long-term partner for Ralph Lauren eyewear and is consistent with our
objective to elevate our brand in the accessories category on a global
basis.”
The license calls for a minimum royalty guarantee, which will be prepaid on
January 1, 2007. The initial payment will be approximately $200 million, the
discounted present value of the guaranteed minimum royalty over the life of
the contract. This amount will be amortized as royalty income over the life
of the agreement.
Luxottica is the global leader in the premium and luxury eyewear sector,
with nearly 5,500 optical and sun retail stores in North America,
Asia-Pacific and China. Luxottica also distributes products in 120 countries
through wholesale subsidiaries and independent distributors. Luxottica will
assume the operations of the Ralph Lauren eyewear store on Madison Avenue in
New York City in January 2007.
Polo Ralph Lauren’s current eyewear license agreement with Safilo S.p.A.
expires on December 31, 2006.
Polo Ralph Lauren Corporation is a leader in the design, marketing and
distribution of premium lifestyle products in four categories: apparel,
home, accessories and fragrances. For more than 38 years, Polo’s reputation
and distinctive image have been consistently developed across an expanding
number of products, brands and international markets.