Oakley and Luxottica Group Sign New Agreement

Oakley and Luxottica Group Sign New Agreement 


FOOTHILL RANCH, Calif. and MILAN, Italy, Dec. 23  /PRNewswire-FirstCall/ --
Oakley, Inc. (NYSE:OO) and Luxottica Group, S.p.A., (NYSE: LUX; MTA: LUX) today
jointly announced they have agreed to a new contract, effective immediately. 
The new commercial agreement sets forth the terms of their relationship through
December 31, 2005.

This new commercial agreement represents a new phase in the relationship
between Oakley, the leading global eyewear brand, and Luxottica Group, the
worldwide leader in the eyewear sector: it establishes the commercial terms
applicable for 2005 between Luxottica Group and Oakley and it is the first step
towards obtaining an anticipated longer term agreement between the two
companies.

The terms of the current agreement include slightly more favorable pricing that
will apply globally to the sale of eyewear products and related accessories
between the two companies.  No other terms of the agreement were disclosed.

About Oakley, Inc.

Oakley: a world brand, driven to ignite the imagination through the fusion of
art and science. Building on its legacy of innovative, market-leading, premium
sunglasses, the company also offers an expanding line of electronics, premium
performance footwear, apparel, accessories, watches and prescription eyewear to
consumers in more than 100 countries. Trailing-12-month revenues through
September 30, 2004 totaled $548.9 million and generated net income of $34.8
million. Oakley, Inc. press releases, SEC filings and the company's Annual
Report are available at no charge through the company's Web site at
http://www.oakley.com/.

About Luxottica Group S.p.A.

Luxottica Group is the world leader in the design, manufacture, marketing and
distribution of prescription frames and sunglasses in mid- and premium- priced
categories. The Group's products are designed and manufactured in its six
facilities in Italy and one in the People's Republic of China. The lines
manufactured by Luxottica Group include over 2,450 styles in a wide array of
colors and sizes and are sold through 20 wholly-owned subsidiaries in the
United States, Canada, Italy, France, Spain, Portugal, Sweden, Germany, the
United Kingdom, Brazil, Switzerland, Mexico, Belgium, Argentina, South Africa,
Finland, Austria, Norway, Japan and Australia; two 75%-owned subsidiaries in
Israel and Poland; a 70%-owned subsidiary in Greece; three 51%-owned
subsidiaries in the Netherlands, Turkey and Singapore, one 49%-owned subsidiary
in the Arab Emirates and one 44%-owned subsidiary in India. In October 2004,
Luxottica Group acquired Cole National Corporation, one of the largest U.S.
optical retailers, operating more than 2,100 retail locations through Pearle
Vision, Sears Optical, Target Optical and BJ's Optical, and a leading provider
of managed vision care services through Cole National Managed Vision. Prior to
that, in September 2003 the Group acquired OPSM Group, the leading eyewear
retailer in Australia, and, in March 2001, Sunglass Hut International, a
leading sunglass retailer with approximately 1,900 stores worldwide. This
followed the acquisitions of the Bausch & Lomb sunglass business, which
includes the prestigious Ray-Ban(R), Revo(R), ArnetteTM and Killer Loop(R)
brands, in June 1999, and LensCrafters, the largest optical retail chain in
North America, in May 1995. For fiscal 2003, Luxottica Group posted net sales
and net income respectively of euro 2,824.6 and euro 267.3 million. Additional
information on the company is available on the web at
http://www.luxottica.com/.

Oakley Safe Harbor Disclaimer

This press release contains certain statements of a forward-looking nature.
Such statements are made pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to growth and strategies, future
operating and financial results, financial expectations and current business
indicators are based upon current information and expectations and are subject
to change based on factors beyond the control of the company. Forward-looking
statements typically are identified by the use of terms such as "may," "will,"
"should," "might," "believe," "expect," "anticipate," "estimate" and similar
words, although some forward-looking statements are expressed differently. The
accuracy of such statements may be impacted by a number of business risks and
uncertainties that could cause actual results to differ materially from those
projected or anticipated, including: risks related to the successful launch,
marketing, sale and consumer acceptance of OAKLEY THUMP(tm); the company's
ability to manage rapid growth; risks related to the limited visibility of
future sunglass orders associated with the company's "at once" production and
fulfillment business model; the ability to identify qualified manufacturing
partners; the ability to coordinate product development and production
processes with those partners; the ability of those manufacturing partners and
the company's internal production operations to increase production volumes on
raw materials and finished goods in a timely fashion in response to increasing
demand and enable the company to achieve timely delivery of finished goods to
its retail customers; the ability to provide adequate fixturing to existing and
future retail customers to meet anticipated needs and schedules; the dependence
on eyewear sales to Sunglass Hut, which is owned by a major competitor and,
accordingly, could materially alter or terminate its relationship with the
company; the company's ability to expand distribution channels and its own
retail operations in a timely manner; unanticipated changes in general market
conditions or other factors, which may result in cancellations of advance
orders or a reduction in the rate of reorders placed by retailers; continued
weakness of economic conditions could continue to reduce or further reduce
demand for products sold by the company and could adversely affect
profitability, especially of the company's retail operations; further terrorist
acts, or the threat thereof, could continue to adversely affect consumer
confidence and spending, could interrupt production and distribution of product
and raw materials and could, as a result, adversely affect the company's
operations and financial performance; the ability of the company to integrate
acquisitions and licensing arrangements without adversely affecting operations;
the ability to continue to develop and produce innovative new products and
introduce them in a timely manner; the acceptance in the marketplace of the
company's new products and changes in consumer preferences; reductions in sales
of products, either as the result of economic or other conditions or reduced
consumer acceptance of a product, could result in a buildup of inventory; the
ability to source raw materials and finished products at favorable prices to
the company; the potential impact of periodic power crises on the company's
operations including temporary blackouts at the company's facilities; foreign
currency exchange rate fluctuations; earthquakes or other natural disasters
concentrated in Southern California where substantially all of the companies
operations are based; the company's ability to identify and execute
successfully cost control initiatives; and other risks outlined in the
company's SEC filings, including but not limited to the Annual Report on Form
10-K for the year ended December 31, 2003 and other filings made periodically
by the company. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The company
undertakes no obligation to update this forward-looking information.
Nonetheless, the Company reserves the right to make such updates from time to
time by press release, periodic report or other method of public disclosure
without the need for specific reference to this press release. No such update
shall be deemed to indicate that other statements not addressed by such update
remain correct or create an obligation to provide any other updates.

Luxottica Group Safe Harbor Statement

Certain statements in this press release may constitute "forward-looking
statements" as defined in the Private Securities Litigation Reform Act of 1995.
Such statements involve risks, uncertainties and other factors that could cause
actual results to differ materially from those which are anticipated. Such
risks and uncertainties include, but are not limited to, fluctuations in
exchange rates, economic and weather factors affecting consumer spending, the
ability to successfully introduce and market new products, the ability to
successfully launch initiatives to increase sales and reduce costs, the
availability of correction alternatives to prescription eyeglasses, the ability
to effectively integrate recently acquired businesses, including Cole National,
risks that expected synergies from the acquisition by Luxottica Group of Cole
National will not be realized as planned and that the combination of Luxottica
Group's managed vision care business with Cole National's will not be as
successful as planned, as well as other political, economic and technological
factors and other risks referred to in Luxottica Group's filings with the U.S.
Securities and Exchange Commission. These forward-looking statements are made
as of the date hereof and Luxottica Group does not assume any obligation to
update them. 

DATASOURCE: Luxottica Group S.p.A.



CONTACT:  Gar Jackson, Director Investor Relations, Oakley, Inc.,

[phone], ; Luca Biondolillo, Director, Corporate

Communications, , or Alessandra Senici, Manager,

Investor Relations, , both of Luxottica Group

S.p.A., [phone]; Ron Parham, Investor Relations Counsel,

PondelWilkinson Parham, [phone], ; Alex Fudukidis of

Breakstone & Ruth, [phone], 



Web site:  http://www.luxottica.com/

http://www.oakley.com/ 

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