Alain Lorenzo Named CEO-Designate of New LVMH / De Beers Company.

Business Editors

PARIS--(BUSINESS WIRE)--Jan. 31, 2001

LVMH, the world's leading luxury products group, and the De Beers Group, the world's premier diamond company, today announced their intention to appoint Alain Lorenzo as CEO of the jointly owned company that they have agreed to establish. This follows the recent announcement of the new venture to unleash the global consumer brand potential of the De Beers name, with the help of LVMH's brand development, global premium retailing and controlled distribution expertise.

Mr. Lorenzo is currently President and CEO of eLUXURY, the authoritative address for luxury on the Internet, launched by LVMH in June 2000 and featuring the world's finest, most prestigious and most exclusive brands, products, and services. Mr. Lorenzo was formerly President and CEO of Parfums Givenchy, an LVMH brand, where he earned considerable respect for driving the business to achieve impressive growth rates on a regular basis during his eight years with the company. Previously he spent twelve years in various sales and marketing positions with Procter and Gamble in the UK, France and Germany.

Myron Ullman, Group Managing Director of LVMH, and Chairman of the newly formed company, said of the designated appointment, "Alain Lorenzo has a long and successful track record within the LVMH Group. During his time at Parfums Givenchy his talent for marketing and image building was evident, as he rejuvenated the brand to reach new levels of success, increasing sales dramatically and launching innovative products such as "?" for men or the newly launched Hot Couture feminine fragrance. He has a demonstrated ability to build on the heritage of a brand, while propelling it into new markets, and this will be a key asset as we take the De Beers brand into new territory. Within eLUXURY he has also gained considerable experience in leading a startup retail venture through its early phases of launch with promising results."

Mr. Lorenzo said, "I relish the opportunity to use my experience in luxury goods to make this new company into a success. We will be working to realize the untapped potential of the De Beers brand in the sale of premium diamond jewellery and associated luxury goods, developing the business plan and setting the foundations for its flagship stores and international roll-out."

Gary Ralfe, Managing Director of the De Beers Group, said, "Alain Lorenzo is tangible evidence of the brand and retail management skills that we were looking to receive from LVMH in order to develop the potential of the De Beers brand among consumers, and broader our vision to create a multiple and competitive environment within the diamond industry."

LVMH also announced that Barbara Wambach, formerly Executive Vice President of Merchandising and Marketing of eLUXURY, has been promoted to CEO, succeeding Mr. Lorenzo. A press release on her appointment is being issued separately.

Notes to Editors

LVMH / De Beers new company

LVMH and the De Beers Group have formed this company to position de Beers as a premium brand in the sale of diamond jewellery and associated luxury goods. The new company's immediate focus will be on premium diamond jewellery and it is envisaged that it will become a key part of the LVMH luxury goods portfolio. The De Beers Group will transfer to the independent company the world-wide rights to use the De Beers brand for luxury goods in consumer markets The development of a specific business plan, including product assortment and channel strategy, will be the responsibility of the management team. It is anticipated that, subject to regulatory approval, the business will commence within the next 12-18 months with a small number of flagship retail stores located in the world's most prestigious cities. These flagships will provide the consumer with the opportunity to experience the De Beers brand in full. www.lvmhdebeers.netcoms

LVMH

Moet Hennessy Louis Vuitton, is the world's leading luxury products group. In addition to its fashion brands the Group is represented in Wines and Spirits by a portfolio of brands that includes Moet & Chandon, Dom Perignon, Veuve Clicquot Ponsardin, Krug, Pommery, Chateau d'Yquem, Chandon, Hennessy and Hine.

LVMH's Fashion and Leather Goods division includes Louis Vuitton, the world's leading luxury brand, as well as Celine, Loewe, Kenzo, Givenchy, Christian Lacroix, Thomas Pink, Fendi and Pucci. In addition, LVMH recently announced plans to acquire Donna Karan. LVMH is also present in the Fragrances and Cosmetics sector with Parfums Christian Dior, Guerlain, Givenchy and Kenzo, and has recently acquired six promising cosmetic companies, Bliss, Hard Candy, BeneFit Cosmetics, Urban Decay, Make Up For Ever and Fresh.

LVMH is active in selective retailing through DFS, Sephora, Le Bon Marche and Eluxury. The Group has established a Watches and Jewellery division comprising TAG Heuer, Ebel, Chaumet, Zenith, Fred, as well as Omas, the prestigious Italian writing instruments company.

Phillips, the international fine art auctioneers, which recently announced plans to merge with dePury & Luxembourg Art, is also part of the LVMH Group. Connaissance des Arts and Art & Auction Magazine, two specialized publications, have recently joined the Group.

LVMH shares (LVMH.PA) are listed on the Paris Stock Exchange and NASDAQ in the United States (LVMHY). www.lvmh.com

De Beers

Incorporated in 1888, the De Beers Group has been involved in all aspects of the diamond industry for more than 112 years. In 1990 it was divided into two main companies, De Beers Consolidated Mines Limited and De Beers Centenary AG. Today, the De Beers Group is the largest diamond mining company in the world, producing some 40 per cent of the world's gem diamonds by value from its own mines in South Africa and, in partnership with government, in Botswana, Namibia and Tanzania. It manages 20 mines in these four countries, developing and incorporating all known methods of diamond mining: open-cast, underground, alluvial, coastal and marine. The De Beers Group's DTC in London sorts, values and currently sells about two thirds of the world's annual supply of rough diamonds. Over the last 60 years, the De Beers Group has also undertaken the advertising and promotion of diamond jewellery around the world. This has brought benefits to diamond producers, manufacturers, retail jewellers and, ultimately, the consumer.