[0] Oakley and Luxottica Resume Business Relationship With New Three-Year Commercial Agreement.

Business Editors & Retail Writers

FOOTHILL RANCH, Calif. & MILAN, Italy--(BUSINESS WIRE)--Dec. 12, 2001

Oakley Inc. (NYSE:OO) and Luxottica Group S.p.A (NYSE:LUX) (MTA:LUX) today jointly announced a new three-year commercial agreement for the distribution of Oakley products through Luxottica's Sunglass Hut International retail stores.

The agreement, effective immediately, applies to Sunglass Hut International locations in the United States, Canada, the United Kingdom and Ireland, and marks the resumption of the business relationship between the two companies, which had been substantially reduced since Aug. 2, 2001.

Oakley and Luxottica also expect to resume their business together on mutually agreed terms for the markets not specifically covered by this new agreement.

"This agreement recognizes the unique, mutually beneficial nature of our association with Sunglass Hut International, the largest sunglass specialty retailer in the world," commented Oakley's Chief Executive Officer Jim Jannard.

"And while we may still have our differences, by renewing our relationship with Luxottica, consumers who prefer to shop at sunglass specialty stores will once again have access to a full selection of Oakley eyewear at Sunglass Hut International."

Leonardo Del Vecchio commented: "We are pleased to have reached this agreement and believe that the high-quality image of the Oakley brand remains unaltered even as Oakley continued to pursue alternative distribution channels."

Under the agreement, Luxottica can obtain preferred pricing terms if it purchases certain minimum quantities from Oakley by Dec. 31, 2002, and in each of the two subsequent years ending Dec. 31, 2003, and 2004, or if Sunglass Hut International shows that Oakley's products accounted for at least 15 percent of the chain's total retail sales in U.S. dollars during each year of the agreement.

Luxottica noted its objective to maintain Oakley sales above this level.

Jannard added, "Due to Oakley's vertically integrated manufacturing processes, these additional sales will help to maximize Oakley's operating efficiencies and, as a result, the company has revised its financial guidance for 2002 in a separate release issued today."

"While this new agreement is clearly important to our sunglass business, we will continue to pursue our initiatives to diversify our distribution, including our Oakley Premium Dealer program, with retailers that carry not only our sunglass line but also our footwear, apparel, prescription eyewear and watch product lines."

The agreement is effective through Dec. 31, 2004. The agreement has no bearing on pending intellectual property litigation between the two companies and their affiliates.

About Oakley Inc.

Oakley: An original, unexpected and innovative world brand. Building on its legacy of market-leading sunglasses, the company offers expanding lines of premium performance footwear, apparel, accessories, watches and prescription eyewear to consumers in more than 70 countries. Trailing 12-month net sales through Sept. 30, 2001, totaled $432.4 million and generated net income of $56.8 million -- a 13.1 percent net margin.

Oakley news releases, SEC filings and the company's Annual Report are available at no charge through the company's Web site at www.oakley.com.

About Luxottica Group

Luxottica is the world leader in the design, manufacture, marketing and distribution of high-quality eyeglass frames in mid- and premium-priced categories.

The group's products, which are designed and manufactured in six facilities in Italy and include more than 2,100 styles in a wide array of colors and sizes, are sold through 20 wholly owned subsidiaries in the United States, Canada, Italy, France, Spain, Portugal, Sweden, Germany, the United Kingdom, Brazil, Switzerland, Mexico, Belgium, Argentina, South Africa, Finland, Austria, Norway, Japan, Hong Kong; three 75%-owned companies in Australia, Israel and Poland; a 70%-owned company in Greece; three 51%-owned subsidiaries in the Netherlands, Turkey and Singapore; and a 49%-owned subsidiary in the Arab Emirates.

In April 2001, Luxottica acquired Sunglass Hut International, a leading sunglass retailer with more than 1,900 stores worldwide. This followed the acquisitions of Bausch & Lomb sunglass business, which includes the prestigious Ray-Ban(R), Revo(R), Arnette(R) and Killer Loop(R) brands, in June 1999 and LensCrafters, the largest optical retail chain in North America, in May 1995.

As of Sept. 30, 2001, LensCrafters operated 867 stores throughout the United States and Canada. For fiscal 2000, Group net sales improved year-over-year by 29 percent to Euro 2,416.8 million and net income by 67.4 percent to Euro 255.3 million.

Oakley Safe Harbor Disclaimer

This news release contains certain statements of a forward-looking nature. Such statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including: risks related to the company's ability to manage rapid growth; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; the ability of those manufacturing partners to increase production volumes in a timely fashion in response to increasing demand and enable the company to achieve timely delivery of finished goods to its retail customers; the ability to provide adequate fixturing to existing and future retail customers to meet anticipated needs and schedules; the dependence on eyewear sales to Sunglass Hut, which has recently been acquired by a major competitor and, accordingly, has sought to alter its relationship with the company and could further alter or terminate such relationship; the company's ability to expand distribution channels and its own retail operations in a timely manner; unanticipated changes in general market conditions or other factors, which may result in cancellations of advance orders or a reduction in the rate of reorders placed by retailers; continued weakening of economic conditions could reduce demand for products sold by the company and could adversely affect profitability, especially of the company's retail operations; further terrorist acts, or the threat thereof, could continue to adversely affect consumer confidence and spending, could interrupt production and distribution of product and raw materials and could, as a result, adversely affect the company's operations and financial performance; the ability of the company to integrate acquisitions; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; the acceptance in the marketplace of the company's new products and changes in consumer preferences; reductions in sales of products, either as the result of economic or other conditions or reduced consumer acceptance of a product, could result in a buildup of inventory; the ability to source raw materials and finished products at favorable prices to the company; the effect of the California power crisis on the company's operations including temporary blackouts at the company's facilities; foreign currency exchange rate fluctuations; and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended Dec. 31, 2000, and other filings made periodically by the company. The company undertakes no obligation to update this forward-looking information.

Luxottica Group Safe Harbor Disclaimer

Certain statements in this news release may constitute forward- looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including risks that may not be subject to the company's control. For a complete list of these risks, refer to Luxottica Group's filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date hereof and the company does not assume any obligation to update them.