Fila Announces New Licenses and Additional 1998 Charge.

BIELLA, Italy--(BUSINESS WIRE)--April 6th, 1999-- Fila Holding S.p.A. (NYSE:FLH) today announced two new licensing agreements and a settlement with a former licensee that will result in an additional charge to the company's previously announced 1998 results.

As a part of the previously announced restructuring of the company's hardgoods division, Fila has reached an agreement with MGM S.p.A. to license in-line skates. In the agreement, Fila sold its existing skates assets to MGM, which will continue to design, develop, manufacture, market and sell in-line skates under the Fila brand name. MGM is a leading Italian designer, manufacturer and marketer of in-line skates, with a strong reputation from its unique convertible skate system branded Hypno.

"We are very confident that the agreement we have entered into with MGM represents a great opportunity for both companies", said Michele Scannavini, Chief Executive Officer of Fila Holding S.p.A.. "It links MGM's strong capabilities and experience in the in-line category with the prestige and tradition of our elite sports brand".

"This agreement will allow us to complete our offer in the racing and fitness segments which we support by sponsoring some of the world's best athletes", said Enzo Prandina, Chief Executive Officer of MGM S.p.A. "Definitely, with this new line, MGM will become a major player in the in-line skates business".

In order to develop at best the highly potential accessories business, Fila also reached an agreement with JR286 to license its hats, bags and small accessories for the U.S. market. JR286 will be responsible for managing all aspects of Fila U.S.A.'s accessories business, including concept design and development, sourcing, packaging, distribution and sales. They will use Fila U.S.A.'s independent rep agencies to sell the product line.

"JR286 brings to Fila U.S.A. human and financial resources, terrific relationships with retailers and experience in merchandising and sourcing that will make an immediate impact on our company" said Jon Epstein, President and C.E.O. of Fila U.S.A.

Fila also reported that it has settled a pre-existing litigation arising out of its termination of a former licensee of a non-core product. The settlement will result in an additional charge of approximately $9.5 million to Fila's 1998 results, thus bringing net loss for the year to Lit.247.9 billion.

Fila Holding S.p.A., headquartered in Biella (Italy), is a leading designer and marketer of athletic and casual footwear and of activewear, casualwear and sportswear. Fila has created strong brand recognition by marketing products with a high design and style content and by securing professional athletic endorsements, event sponsorships and licensing partnerships.

(a) Any reference to Fila is to Fila Holding S.p.A. and its subsidiaries.