Contract

Actif Group PLC 11 July 2000 ACTIF GROUP PLC ('ACTIF' OR THE 'COMPANY') Actif announces agreement with Zoom.co.uk, the UK's most successful fashion and lifestyle etailer, to launch multi-platform distribution of ELLE fashion brand As part of its continuing development of additional routes to market for the highly successful ELLE fashion brand, Actif PLC, who manage the brand under license in the UK and Europe, announces its agreement with Zoom.co.uk for multi-platform etail distribution. Zoom.co.uk has only recently announced the launch of the ultimate e-solution for high street retailers and designers wishing to go online across all platforms. 'ELLE' is one of the first brands to benefit from Zoom's 'one-stop- shop', which provides brands and retailers with a comprehensive solution to going online, from ordering and processing to delivery and customer service. Zoom's aggressive strategy in launching its 'one-stop-eshop' service revolutionises the complex process of going online. Brands wishing to have an online presence will benefit from Zoom's web designers, logistics systems, warehouses and call centres as well as from the company's fashion expertise and big community of fashion buyers. Partners will also benefit from the broad reach provided by the Associated Newspapers Ltd (ANL), a co-owner of Zoom.co.uk. All the components will be seamlessly integrated by Zoom's expert team - making it as easy as possible for major brands to make the most of this new delivery channel. The brands exclusively available under the Zoom umbrella will be accessible across all platforms - on the Zoom shopping portal at www.zoom.co.uk as well as on Zoom's WAP shopping service and on digital TV, following Zoom's newly signed deal with NTL. Zoom WAP surfers will be able to buy the latest fashion and track their orders while on the move straight from their WAP phone. Martin Lent, CEO of Actif Group plc, commented: 'The ELLE merchandising programme is now in excess of 1 billion USD retail worldwide and has firmly established the ELLE brand of fashion and accessories as a leader in the high street and catalogue markets. The UK has been the most successful territory in Europe since the launch only 4 years ago and with the increasing number of women on the web, we are now looking forward to making our presence in the online world. Following the launch of our own retail shops last year it is a natural progression for the brand to have its own e-tail environment on the web. We are delighted to be working with the UK's most successful fashion e-tailer. Zoom's expertise, resources and capacity to develop our online presence across all platforms will help us make our mark in this competitive e-retail environment'. Enquiries: Martin Lent, Chief Executive, Actif Group plc Tel: 020 7436 3330 Piers Hooper / Wendy Baker, Hudson Sandler Tel: 020 7796 4133 NOTES TO EDITORS: Actif Group's strategy is to acquire the clothing rights for international quality brands and to use its management experience to develop those brands through a variety of routes to market in the UK and Europe. It now has two brands under management and expects to add additional brands in the future. Actif Group's existing activities comprises the design and distribution, both wholesale and retail, of clothing under the ELLE brand in the UK and Europe and for JOE BOXER in the same territories. ELLE The Company holds the ELLE brand, under license from Hachette, currently until 31 December 2008. The ELLE brand includes activewear, sportswear, nightwear, swimwear and underwear. The ELLE brand is recognised throughout the world, particularly through the magazine of the same name, which has a global readership of 80m worldwide. ELLE clothing is targeted at fashion conscious, independent woman in the 18 to 35 year range. The brand is supported by a new marketing campaign underpinned by the slogan 'ELLE - When trends come to life.' The Group's in-house team designs the ELLE clothing lines, in consultation with Hachette's designers. More than half of the Group's clothing is currently manufactured in Portugal with the balance in the Far East, UK, Turkey and Greece. Group sales have increased from £1.3m in 1995 to £10.2m in 1999, representing a compound growth rate over the period of 67%. Routes to market include: * Wholesale through John Lewis, Debenhams, Karstat, Kaufhof, Globus and Printemps and independent fashion boutiques. Actif introduce dedicated ELLE shop fittings to create 'stores within stores'. It is anticipated that over 50 department stores will be added to the portfolio within the next 2 years. * Retail through the Company's own shops in Bluewater, Kent and Leeds with two new stores opening this month in the Trafford Centre, Manchester and The Metro Centre, Gateshead. The Company has retail concessions in Bentalls, Brown Thomas and Beatties and is opening 18 concessions in House of Fraser by August 2000. The Company also retails through designer outlet centres in Bridgend, Braintree, Portsmouth, Castleford and Cheshire Oaks. The Directors intend to open further dedicated ELLE retail outlets across the UK by July 2002. Lifestyle content, including juice bars, internet access screens, health and beauty facilities will be introduced to stores where appropriate. * Mail order business is strong through Freemans, Empire, Littlewoods, Otto Versand, Spengler and Spiegel. * Actif announced this month its signing of an agreement with Zoom.co.uk to launch an ELLE Creation site on the web hosted by Zoom. This is planned for a late July soft launch and going live in September 2000. JOE BOXER Actif announced in May 2000 that it had entered into a 15 year master licence agreement with JOE BOXER Corp, a leading US designer and manufacturer of underwear and sleepwear, for all European territories. In addition, the Group intends to launch a new e-commerce site to support the brand throughout Europe. The licence agreement, which will be held by Actif subsidiary, changedaily.co.uk ltd, covers Joe Boxer underwear and sleepwear product lines for men, women and children. Design origination and overall control of the development of the brand will remain with JOE BOXER in the US. Joe Boxer product lines also include loungewear, home furnishings, bedroom slippers, casual at-home footwear, and sun and optical eye wear for men, women and children. JOE BOXER is distributed throughout the US in over 4,000 department stores, speciality shops and catalogues. Product is also currently produced under license in Australia, Canada, Japan, Mexico and New Zealand. Current wholesale volumes worldwide exceed $100m. The license will initially run for 5 years, from 1 April 2000 to 31 March 2005, ('the initial term') with a renewal option for the licensee, subject to the achievement of certain performance criteria. Actif will pay royalties based upon sales volumes at different rates for both wholesale and retail. There will be a minimum royalty payment per annum, increasing through the term of the agreement. Actif Group will shortly announce the launch of its own dedicated investor relations website. In the meantime all corporate information can be sourced through its Financial and Corporate PR advisers, Hudson Sandler Limited. Please contact either Piers Hooper or Wendy Baker on 020 7796 4133 or at name.name@hspr.co.uk.
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