Inter Parfums and Burberry Sign a Long-Term Fragrance License.
Jean Madar, Chairman & Chief Executive Officer of Inter Parfums stated, "We have enjoyed an excellent working relationship with the senior management at Burberry and are very happy that our partnership, which began in 1993, will continue well into the future. The new license includes rights for other related skin care and personal care categories which bring additional opportunities to our Company."
As previously reported, the new Burberry fragrance license provides for an increase in the royalty rate effective as of July 1, 2004 and additional resources to be devoted to marketing commencing in 2005. In anticipation of these changes and to mitigate the associated expenses, Inter Parfums is fine-tuning its model by establishing a dedicated Burberry Fragrances operating unit. This new model is expected to increase selling prices, modify cost-sharing with suppliers and distributors, and involves the future formation of joint ventures or Company-owned subsidiaries within key markets.
Jean Madar went on to say, "As a result of the growing recognition of the Burberry brand and the planned marketing investment, Burberry Fragrances is well positioned to enjoy strong growth and become one of the world fragrance leaders."
Inter Parfums develops, manufactures and distributes prestige perfumes and cosmetics as the exclusive worldwide licensee for Burberry, S.T. Dupont, Paul Smith, Christian Lacroix, Celine, Diane von Furstenberg and Lanvin. The Company also has controlling interest in Nickel S.A., a men's skin care company. In addition, Inter Parfums is a leading producer and supplier of consumer fragrances, cosmetics and personal care products. The Company's products are sold in over 120 countries worldwide.
Statements in this release which are not historical in nature are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from projected results. Such factors include effectiveness of sales and marketing efforts, the future formation of joint ventures or Company-owned subsidiaries within key markets, product acceptance by consumers, dependence upon management, competition, currency fluctuation and international tariff and trade barriers and governmental regulation. Given these uncertainties, persons are cautioned not to place undue reliance on the forward-looking statements.
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|Date:||Oct 12, 2004|
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