DFS Group Wins 10-Year Master Retail Concession At New San Francisco Airport International Terminal.

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 16, 1999--

Company Will Enhance Travelers' Overall Shopping Experience

With 50,000 Square Feet Of Retail Space

DFS Group Limited, the world's leading retailer to the international traveler, today announced that it has won the master concession for duty free and duty paid retailing in the new international terminal at San Francisco Airport. The ten-year concession, which will begin with the opening of the new terminal in May 2000, will enable DFS to significantly enhance travelers' overall shopping experience at the airport by showcasing the company's successful new airport specialty concepts.

The new DFS concession will cover 50,000 square feet of duty free and duty paid specialty retail space primarily in the secure area (beyond the passenger security checkpoints) of the new terminal. With a retail area more than double the dimensions of its space in the existing international terminal, DFS intends to introduce several new specialty concepts in addition to the traditional duty free and general merchandise shops.

In conjunction with the opening of the new terminal, DFS also plans to develop the former I. Magnin store on Union Square in San Francisco as a DFS Galleria -- a comprehensive duty free and duty paid store for domestic and international tourists visiting the Bay Area. The first phase of this development will open in early 2000.

Brian Kendrick, President and Chief Executive Officer of DFS Group, said: "We are extremely pleased that the Airport Commission has accepted our comprehensive retail proposal for the new international terminal. Our plan reflects our faith in the long-term future of San Francisco Airport as a major international gateway and demonstrates our continued commitment to the City of San Francisco and its tourism industry."

With 24 gates and volumes projected to reach 12 million passengers annually, the new airport facility will be the largest international terminal in the United States. The new terminal is the centerpiece of the airport's Master Plan, a $2.5 billion project that will include extensive improvements to the airport's infrastructure, including the road and public transportation systems.

Mr. Kendrick continued, "This successful bid also reflects our intention to continue pursuing retail concessions at important international gateway airports, particularly in locations where we have existing retail operations. We started the duty free concession at San Francisco Airport in 1973, which at the time was the first airport duty free shop on the West Coast.

"After operating in the current international terminal since 1983 without a significant increase in retail space, we are particularly excited about the much larger retail area at the new terminal, which will allow us to implement creative new merchandising initiatives. Our retail offerings at the airport will be complemented by our new Union Square retail development, which will further enhance San Francisco's reputation as an international shopping destination."

Based in San Francisco, DFS Group Limited is majority owned by LVMH Moet Hennessy Louis Vuitton, the Paris-based luxury products group. A part of LVMH's Selective Distribution Group, DFS operates more than 150 duty-free and general merchandise stores throughout Asia, the Pacific Rim, and the West Coast of North America.