Burberry signs eyewear licensing deal

Burberry Group and Luxottica Group S.p.A. announced today a 10-year licence agreement for the design, production and worldwide distribution of prescription frames and sunglasses under the Burberry name. The agreement will begin on January 1, 2006.

Brian E. Blake, President and Chief Operating Officer of Burberry Group plc commented: "Burberry looks forward to working with Luxottica in this new global partnership. Among Luxottica's many strengths, its proprietary store network in key markets and targeted growth geographies are very well aligned with Burberry's expansion strategies. Together we will endeavour to realise the exciting opportunities for the Burberry brand in the eyewear category."

The first Burberry eyewear collections under the agreement will be presented in October 2006. The two companies expect that the collections have the potential to generate wholesale sales in excess of euro 50 million annually within two to three years of launch. Luxottica Group is a global leader in eyewear, with nearly 5,500 optical and sun retail stores mainly in North America and Asia-Pacific and a well- balanced portfolio that comprises leading premium house and licensed brands, including Ray-Ban, the best selling sun and prescription eyewear brand in the world.

Among others, the Group's brand portfolio includes house brands Vogue, Persol, Arnette and REVO and license brands Bvlgari, Chanel, Dolce & Gabbana, Donna Karan, Prada and Versace. Shares in Burberry have dropped 5 per cent since the announcement of Rose-Marie Bravo's departure next year.