NEW YORK, Jul 23, 2010 (BUSINESS WIRE) --

Polo Ralph Lauren Corporation (NYSE: RL) today announced it has reached an agreement to assume direct control of its wholesale and retail distribution from its licensee, Doosan Corporation, in South Korea, beginning January 1, 2011. Doosan Corporation will continue to operate as the Company's licensee in the region through December 31, 2010. The total purchase price will be approximately $47 million, comprised of a cash payment of $25 million for certain assets plus an additional payment estimated at $22 million for primarily inventory and various other assets to be determined at closing on December 31, 2010.

"Expanding and elevating our international presence is one of our highest strategic priorities," said Ralph Lauren, Chairman and Chief Executive Officer. "South Korea is one of our largest markets, and has always been an important territory for us. It remains one of the world's most vibrant markets for luxury goods. South Korean consumers have developed a strong appreciation for our iconic lifestyle sensibility and we are excited to build on this success."

"Polo Ralph Lauren has a history of success in South Korea and we want to thank the Doosan Corporation and their employees for their commitment and dedication to the development of our brands in this market over the last 12 years," said Roger Farah, President and Chief Operating Officer. "Assuming control of South Korea is another important milestone in our broader Asian growth strategy. It is a major piece of the strategy that enables us to directly operate all of Asia with greater consistency across all markets and channels in a manner that is more closely aligned with our global brand positioning and objectives. We began the development of our Asian strategy several years ago with the acquisition of Japan in 2007, followed recently by the acquisition of several other important Asian markets in January 2010, including China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan, and Thailand. Today, with the announcement of this transaction, we are looking forward to a fully integrated Asian strategy that includes South Korea, and leverages the Hong Kong-based leadership, expertise, and infrastructure we have established over the last year in order to optimize the unique opportunities of each country."

Doosan Corporation currently distributes Polo Ralph Lauren product through approximately 175 shop-in-shops and five freestanding locations throughout South Korea.

ABOUT POLO RALPH LAUREN

Polo Ralph Lauren Corporation (NYSE: RL) is a leader in the design, marketing and distribution of premium lifestyle products in four categories: apparel, home, accessories and fragrances. For more than 40 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 Collection, Black Label, Blue Label, Lauren by Ralph Lauren, RRL, RLX, Rugby, Ralph Lauren Childrenswear, American Living, Chaps and Club Monaco, constitute one of the world's most widely recognized families of consumer brands. For more information, go to http://investor.ralphlauren.com.

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 revenues, 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 significant 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 Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: Polo Ralph Lauren Corporation

Polo Ralph Lauren
Corporate Communications
Julie Berman, 212-583-2262
or
Investor Relations
James Hurley, 212-813-7862