NEW YORK--(BUSINESS WIRE)--May 23, 2005--Polo Ralph Lauren Corporation (NYSE:RL) today announced that it has signed a definitive agreement to purchase Ralph Lauren Footwear Co., Inc., its global licensee for footwear for men, women and children.

"We are very excited about the development of a global luxury accessories business and this acquisition moves us closer to that goal. We are assembling the right businesses and people to build our accessories into an important part of our future," said Ralph Lauren, Chairman and Chief Executive Officer.

"We are pleased to acquire our footwear business as we continue to execute our long-term strategy of taking more direct control of our valuable brands. We believe the development and refinement of our global footwear business is an excellent opportunity for growth at Polo Ralph Lauren," said Roger Farah, President and Chief Operating Officer. "We have been making investments in design and infrastructure to support this strategic initiative. The acquisition of our footwear licensee will be a key element of a successful accessories strategy."

The purchase of Ralph Lauren Footwear is a cash transaction of approximately $110 million, subject to closing adjustments. Consummation of the transaction is subject to review under the provisions of the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The transaction is expected to be marginally dilutive to Polo Ralph Lauren's earnings in Fiscal 2006, taking into consideration purchase price allocation and the elimination of licensing royalties. The transaction is expected to close by the end of the second quarter of 2005.

Ralph Lauren Footwear Co, Inc. is a wholly owned subsidiary of Reebok International Ltd. Ralph Lauren Footwear has been a Polo Ralph Lauren licensee since 1996, holding exclusive licenses to design, manufacture, and sell men's, women's and children's footwear.

UBS Investment Bank acted as the exclusive financial advisor to Polo Ralph Lauren with respect to this transaction.

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 37 years, Polo's reputation and distinctive image have been consistently developed across an expanding number of products, brands and international markets. The Company's brand names, which include "Polo by Ralph Lauren", "Ralph Lauren Purple Label", "Ralph Lauren", "Black Label", "Blue Label", "Lauren by Ralph Lauren", "Polo Jeans Co.", "RRL", "RLX", "Rugby", "RL Childrenswear", "Chaps", and "Club Monaco" among others, constitute one of the world's most widely recognized families of consumer brands. For more information, go to http://investor.polo.com.

Although Polo Ralph Lauren Corporation and Ralph Lauren Footwear Co., Inc .have executed a definitive agreement, no assurance can be given that the transaction will close as contemplated. This press release and oral statements made from time to time by representatives of the Company contain certain "forward-looking statements" concerning current expectations about the Company's future results and condition, including sales, store openings, gross margins, expenses and earnings. Actual results might differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to materially differ include, among others, changes in the competitive marketplace, including the introduction of new products or pricing changes by our competitors, changes in the economy and other events leading to a reduction in discretionary consumer spending; risks associated with the Company's dependence on sales to a limited number of large department store customers, including risks related to extending credit to customers; risks associated with the Company's dependence on its licensing partners for a substantial portion of its net income and risks associated with a lack of operational and financial control over licensed businesses; risks associated with changes in social, political, economic and other conditions affecting foreign operations or sourcing (including foreign exchange fluctuations) and the possible adverse impact of changes in import restrictions; risks associated with uncertainty relating to the Company's ability to implement its growth strategies or its ability to successfully integrate acquired businesses; risks arising out of litigation or trademark conflicts, and other risk factors identified in the Company's Form 10-K, 10-Q and 8-K Reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

CONTACT: Polo Ralph Lauren Corporation
Investor Contact:
Denise Gillen, 212-318-7516
Media Contact:
Nancy Murray, 212-813-7862
SOURCE: Polo Ralph Lauren Corporation