July 4, 2007 – In June, Luxottica Group, a leading designer, manufacturer and distributor of prescription eyeglass frames and sunglasses, announced that they will acquire all outstanding shares of Oakley for a cash purchase price of US$29.30 per share, together with “the purchase of all outstanding options and other equity rights at the same price per share less the excise tax.”

The total purchase price is about US$2.1 billion and the resulting synergies will save “several US$100 million within the next three years.” The transaction is expected to close in the second half of 2007 and is subject to the approval of Oakley’s shareholders.

Luxottica Group, with 5,800 optical- and sun-retail stores worldwide, was founded in 1961 by Italian metal craftsman Leonardo Del Vecchio and includes world-renowned products such Arnette, Ray-Ban, Donna Karan, Chanel, Versace, Bvlgari, Burberry, Chanel and Dolce & Gabbana among its own and licensed brands.

Jim Jannard, Oakley Inc. founder and chairman, is pleased with the deal. “Oakley’s technology and performance is one of the world’s best kept secrets and this partnership should empower our ability to tell our story throughout the world,” he says.