Boards of Directors, Global Coordinators and Advisors Decide to Suspend Prada IPO.

Business Editors

Prada Holding NV:

The Worsening Scenario and Uncertainty Surrounding the Financial

Markets Worldwide Have Prompted the Suspension of the IPO 

Significant Improvement in the Group's Financial

Position Expected for the First Half of 2002

The Boards of Directors of ITMD Investments BV and of Prada Holding NV have jointly agreed with global coordinators BNP Paribas, Deutsche Bank, IntesaBci and advisor Morgan Stanley to suspend the flotation of Prada Holding NV on the Italian stock market, as Prada Group's valuation would not reflect its full potential under current market conditions.

The Boards of Directors and the banks have decided with much regret, and after long and careful evaluations, that the recent deterioration of financial market conditions has been far worse than expected, particularly since April when the decision was taken to begin the IPO process depending on general market conditions

The Board of Directors of Prada Holding NV, which was recently joined by a number of leading entrepreneurs and professionals such as Luciano Benetton, Francesco Gianni, Manuel Puig and Franco Tato as independent Directors, also reiterated its intention to pursue the Group's expansion and development throughout the world.

The two Boards, together with BNP Paribas, Deutsche Bank, IntesaBci and advisor Morgan Stanley, will monitor the performance of the markets very closely and hope that market conditions will evolve positively for Prada's IPO.

Patrizio Bertelli and Miuccia Prada said:

"We have had to acknowledge, with regret, that very poor financial market conditions do not allow us to proceed with our plans to broaden the Group's shareholder base and share with institutional and private investors our expansion plans. We do not think an appropriate valuation can be achieved under current market conditions that would reflect the substantial and ongoing growth of our brands, know-how and products throughout the world. 2002 first half estimated figures, that show a substantial improvement of the net financial position of the Group, confirm that we have earned the appreciation and loyalty of our customers and that the strategy we are pursuing is the right one."

The Prada Group, with consolidated 2001 sales of EUR 1,729 million, is an international market leader in the design, production and distribution of leather goods, shoes and ready-to-wear. The Group owns some of the world's best-known and highly prestigious brands, such as Prada, Jil Sander, Church's, Helmut Lang, Genny and Car Shoe and it holds exclusive licences for the Miu Miu and Azzedine Alaia brands. At present there are 307 directly managed Prada Group stores in the world's most prestigious locations.