Luxottica Group and Tiffany & Co. sign landmark 10-year eyewear license agreement

Milan, Italy and New York, NY – December 5, 2006 - Luxottica Group S.p.A. (NYSE: LUX; MTA: LUX), the global leader in eyewear, and Tiffany & Co. (NYSE: TIF), the world-renowned jeweler, today announced the signing of a landmark 10-year license agreement for the design, manufacturing and worldwide distribution of exclusive ophthalmic and sun collections under the TIFFANY & CO. name. The agreement marks Tiffany’s entrance into the eyewear market, with the launch of the first-ever collections carrying the Company’s iconic luxury brand expected for early 2008.

“As a luxury fashion accessory, eyewear seems like a natural addition for us,” said Michael J. Kowalski, Tiffany’s chairman and chief executive officer. “Tiffany’s success has always been tied to offering a wide range of extraordinary product designs, in jewellery, timepieces, tableware and accessories. Our customers’ expectation and trust in that design integrity is an important foundation of our heritage and brand image.

We are pleased to establish this relationship with Luxottica, which we believe will generate exciting designs for our customers.” Andrea Guerra, chief executive officer of Luxottica Group, commented: “We are extremely pleased to begin this new and historic partnership with Tiffany & Co., one of the world’s most prestigious luxury retailers and a brand that has built its heritage on exquisite design and craftsmanship. Tiffany’s entry into the eyewear market further demonstrates that eyewear has evolved into a high style, luxury accessory.”

For 169 years, Tiffany & Co. has designed and produced standard-setting jewelry and accessories, while Luxottica Group has built over the years a strong tradition of crafting luxury eyewear for some of the leading luxury brands in the world. The licensing arrangement represents a natural partnership that will offer the highest levels of style, quality and service.

Mr. Guerra added, “Over the past years, our Group has further strengthened its leadership position in the eyewear market through the growth of both new and existing partnerships with many of the preeminent luxury and fashion brands in the world.

Given this successful track record, along with the long-term nature of the agreement, our two companies can be expected to develop a truly unique eyewear line in full respect of the long-term values of luxury and exclusivity that Tiffany has built over the years.” The distribution of Tiffany’s collections will be selective and exclusive, starting with Tiffany’s own stores as well as the finest retail locations in North America, Japan, Hong Kong, South Korea, key Middle East markets and Mexico and extending over time to additional markets and through new distribution channels.

Luxottica Group anticipates strong growth from the TIFFANY & CO. eyewear collections.

After the initial launch period and distribution has broadened over time to most markets and channels, Luxottica Group expects the line to generate revenues of at least €50 million per year.