NEW YORK--(BUSINESS WIRE)--Feb. 27, 2006--Polo Ralph Lauren Corporation (NYSE: RL) today announced that it has entered into a long-term licensing agreement with Luxottica Group, S.p.A. of Milan for the design, production and worldwide distribution of prescription frames and sunglasses under the Polo Ralph Lauren brand. The agreement is effective January 1, 2007 and the new collection will be available in early 2007.

"This new agreement is another key strategic step in the development of our worldwide luxury accessories business as we take this important fashion category and aggressively extend it over the long term," said Ralph Lauren, Chairman and Chief Executive Officer. "Luxottica stands apart in the industry because of their expansive international presence and their commitment to extensive vertical retail stores. This makes them the ideal long-term partner for Ralph Lauren eyewear and is consistent with our objective to elevate our brand in the accessories category on a global basis."

The license calls for a minimum royalty guarantee, which will be prepaid on January 1, 2007. The initial payment will be approximately $200 million, the discounted present value of the guaranteed minimum royalty over the life of the contract. This amount will be amortized as royalty income over the life of the agreement.

Luxottica is the global leader in the premium and luxury eyewear sector, with nearly 5,500 optical and sun retail stores in North America, Asia-Pacific and China. Luxottica also distributes products in 120 countries through wholesale subsidiaries and independent distributors. Luxottica will assume the operations of the Ralph Lauren eyewear store on Madison Avenue in New York City in January 2007.

Polo Ralph Lauren's current eyewear license agreement with Safilo S.p.A. expires on December 31, 2006.

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 38 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.

CONTACT: Polo Ralph Lauren Corporation
Investors:
Denise Gillen, 212-318-7516
or
Media:
Nancy Murray, 212-813-7862

SOURCE: Polo Ralph Lauren Corporation