Court Injunction Requires Landlords of Seven Canal Street Properties to Prevent the Illegal Sale of Counterfeit Louis Vuitton Goods by Tenants.

NEW YORK -- LVMH:

--Brings to 18 Buildings on Infamous New York "Canal Street Corridor" Now Covered by Injunctions that Include Regular Monitoring, Following Louis Vuitton's Successful Application of Vicarious Liability Principle --

--Innovative Landlord Program to Fight Counterfeiting Gaining Momentum Globally with Recent Victory in Beijing's "Silk Street" and Actions Underway in Other Markets Worldwide --

Louis Vuitton Malletier, part of LVMH, the world's leading luxury products group, today announced that it has won yet another court injunction against prominent Canal Street property landlords, in which the owners agree to take a number of significant actions to prevent the illegal sale of counterfeit Louis Vuitton goods by their tenants.

In keeping with the terms of the U.S District Court for the Southern District of New York-protected agreement, the owners of seven properties along the "Canal Street Corridor" have agreed to:

--clearly post signs in and outside of all seven properties, stating that the retailer is not authorized to sell Louis Vuitton merchandise,

--provide full access to, and pay the cost of, a court-appointed monitor to conduct frequent searches of both public and private areas of the buildings to prevent the sale of any counterfeit Louis Vuitton goods,

--add a provision to lease contracts banning the sale of counterfeit goods on the premises, and

--immediately move to evict any tenant found to be in possession of fake Louis Vuitton products.

Pioneering the application of the vicarious liability principle to fight counterfeiting on Canal Street, Louis Vuitton previously entered into similar legally binding agreements with landlords Richard Carroll (April 2005) and Michael Marvisi (July 2005). There are now 18 buildings along the "Canal Street Corridor" -- an area widely recognized as a haven for counterfeiters --covered by the injunctions which include frequent monitoring to prevent the possession and distribution of goods infringing on the brand's intellectual property rights.

"The momentum we are gaining in our relentless fight against counterfeiting is tremendous, not only in the US but also in other marketplaces worldwide," said Nathalie Moulle Berteaux, Director of the Intellectual Property Department for the Fashion & Leather Goods division of LVMH. "By working closely with law enforcement authorities and other trademark holders and compelling those aiding and abetting counterfeiters to accept responsibility for the counterfeiters' criminal actions, we are putting a stranglehold on the distribution of fake goods.

"Those seeking to purchase counterfeit Louis Vuitton goods on Canal Street must now face the danger of following a stranger down a dark alley, or stairway, to a hidden room, which serves as a both deterrent to shoppers who fear for their safety, and a strong reminder that the sale of counterfeits is a crime.

"We've made real progress by strengthening our arsenal of anti-counterfeiting weapons to include the Landlord Program, but there is still much work to be done. We're expanding this program globally and recently won a significant legal victory against the owner and operator of Beijing's "Silk Street" shopping mall. And, Louis Vuitton is currently in discussions with the landlords in numerous other markets to prevent them from benefiting from the illegal activities of their tenants.

"In 2006, we will continue to demonstrate our commitment to protecting Louis Vuitton's unparalleled image, legendary history and the interests of our customers by pursuing all appropriate tactics to stamp out global counterfeiting activities."