Portfolio companies – Jil Sander Group

PRADA Group and Change Capital Partners Agree Jil Sander Acquisition

London, February 23, 2006 – Change Capital Partners, the private equity firm specialising in branded goods and retail, and the PRADA Group announce that Change Capital Partners is to acquire the JIL SANDER Group. Closing of the transaction is subject to customary conditions including regulatory approval.

Founded in Hamburg, Germany as a women’s ready-to-wear brand in 1975, Jil Sander has been controlled by the PRADA Group since September 1999. Jil Sander is a highly-regarded fashion house which designs, manufactures and distributes luxury women’s and men’s ready-to-wear, accessories, footwear and fragrances. Today, Jil Sander is present in the world’s most important luxury-goods markets through its 16 directly-operated stores and an extensive independent client network in Asia, Europe and North America.

Over the past year, Jil Sander’s Chief Executive Officer Gian Giacomo Ferraris has implemented a comprehensive restructuring plan aimed at restoring efficiency throughout the entire organisation. The Company is on track to reach operating break-even in 2006, with total revenues forecast in excess of Euro 140 million. In July 2005, the Company appointed Raf Simons as its new creative director. With a strong management team and creative leadership, a lean and efficient organisation, and an enduring reputation for innovative design, high-quality materials and production processes, Jil Sander is now well-positioned for significant growth and development.

Building on the work completed under the stewardship of the PRADA Group, Change Capital Partners is committed to respecting and protecting Jil Sander’s strong brand identity and values. Change Capital Partners will seek new opportunities for growth by developing representation in emerging markets and capitalising on the existing presence in the U.S., Japan and Europe. In addition to geographic expansion in these markets, Change Capital Partners will also explore the opportunities presented by expanding existing product categories.

Stephan Lobmeyr, Managing Director, Change Capital Partners, said:
 “Change Capital Partners is excited to acquire the global brand Jil Sander. We look forward to working with the team at the company to help shape the brand for the future. This will be a great combination of Jil Sander’s creative talent and managerial expertise and Change Capital Partners’ branded goods, retail and private equity experience.

Patrizio Bertelli, Chairman and Chief Executive Officer of the PRADA Group, said:
“As we focus on the development of the Prada and Miu Miu brands, I am certain that Change Capital Partners will be able to provide the necessary investment to further grow the Jil Sander business. We have transformed the Company with the restructuring plan led by Gian Giacomo Ferraris, and we have started a new creative phase with the recent arrival of Raf Simons. I wish them and their teams a very successful future and look forward to continuing to collaborate in various areas of product development and manufacturing.”

Gian Giacomo Ferraris, Chief Executive Officer of Jil Sander, said:
“We are delighted that as the Company nears the end of a period of transformation, we can combine the resources and specialist knowledge of Change Capital Partners with our know-how of the high-end luxury-goods industry to develop Jil Sander’s business. Jil Sander has great potential for growth, and we are committed to reaching our ambitious goals. I’d like to thank our shareholders and all our employees for their support during the restructuring phase.”

For further information please contact

Stephan Lobmeyr   Change Capital Partners  +44 207 808 9110
Gill Ackers / James Olley  Brunswick   +44 207 404 5959
Tomaso Galli/ Jason Jacobs  PRADA Group  +39 02 5419 2405