Partnership Deal

MULBERRY GROUP PLC 20 July 1999 MULBERRY ANNOUNCES PARTNERSHIP DEAL WITH MAJOR US HOME FURNISHING COMPANY KRAVET Mulberry, the market leading British luxury goods brand, has today agreed a landmark license and partnership agreement with Kravet, the US Home Furnishings company. The agreement will result in Kravet distributing Mulberry fabric, wallpaper and soft furnishings through its network in the UK, Europe as well as North and South America. Mulberry will continue to control the design and marketing of the product ranges whilst Kravet will invest in expanding the product offering and further improving logistical and service standards. Kravet will pay a consideration of £1.5 million to Mulberry and it is envisaged that the agreement will result in a 400% increase in sales of the licensed product over the next five years. The agreement will also mean a prestigious new Mulberry Home showroom on the ground floor of Chelsea Harbour. In addition, Mulberry is publishing 'Mulberry at Home' in September, its very first lifestyle book, in conjunction with Ebury Press, which illustrates the breadth of the Mulberry collection in a variety of Home settings. Commenting on the agreement, Mulberry Chairman, Roger Saul, said; 'We are delighted with today's announcement. We have sought for some time to simplify and develop the Home business through such an agreement with a 'blue-chip' partner like Kravet. I believe today's deal underlines our work over the past few years to establish Mulberry Home as a premium luxury brand throughout the US and Europe. We are excited about this deal because we see our Home collection as being one of the key growth areas for Mulberry. The modern consumer is becoming increasingly lifestyle orientated and I feel that Mulberry is perfectly poised to meet this need. Our strategy continues to be the development of the Mulberry brand via a series of exclusive agreements with market leading partners in key countries.' For further information, please contact: Roger Saul Chairman, Mulberry Group PLC 01749 340 532 Alex Mackey GCI Focus 0171 600 1392
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