31/07/2008 - SENSATIONAL AGREEMENT FOR LOTTO IN CHINA

The Italian company of Andrea Tomat has signed a twenty-year licensing deal with China's number one sportswear brand company Li Ning for manufacturing and distributing Lotto's products in Mainland China

Trevignano (Italy)/Beijing (China) 31 July 2008 - Lotto Sport Italia announces the signing of a 20-year partnership agreement, from September 2008, with the Chinese Li Ning Company Ltd., for the production and distribution of the Lotto brand products in China.

With headquarters in Beijing and offices and logistics centres throughout China, Li Ning Company was named after its founder and famous gymnast, who won three Gold, two Silver and one Bronze medals at the 1984 Los Angeles Olympic Games. Li Ning holds third position overall among sector companies operating in China. Listed on the Hong Kong Stock Exchange since 2004 and with overall sales of 400 million euro in 2007 (+36.7% on 2006), Li Ning is aiming to exceed sales of 600 million euro in 2008.

Already dominating the medium-band sports market with its own brand, Li Ning has set itself the goal of leadership also in the upper price range, which is why it has singled out Lotto as its ideal partner for achieving this important repositioning operation.

With the exceptions of Hong Kong and Macau, where Lotto will continue to distribute its own products through its subsidiary Lotto Sport H.K. Ltd., the new agreement involves the retailing of Lotto's products in monobrand stores and counters in the most prestigious department stores of China's largest cities.



Andrea Tomat, President and Chief Executive Officer of Lotto Sport Italia, declared:
“We have obviously set ambitious turnover goals and expect to reach overall sales for more than 60 million euro in 2013 through at least 600 monobrand Lotto stores around the country. China represents a key market for all companies so it is naturally at the centre of Lotto's worldwide expansion activities. We found the Li Ning proposal immediately very interesting due to the company's importance in China, its growth strategy, excellent organisation, and the high quality of its management. Our direct presence in the Asian market through the “Lotto China Ltd.” joint-venture enabled us to impress upon local operators just how big our own brand's growth potential is in China. We therefore received proposals from several leading companies of the industry and at the end have chosen the number one: the partner with the strongest and best-prepared structure. It's a partnership from which we expect extraordinary drive for Lotto’s presence not only in China but right across Asia."


About Li Ning Co. Ltd.
A Chinese company, Li Ning takes its name from its owner and the greatest gymnast to date. Li Ning was established in 1990 and is today the 3rd sports brand in China, with over 1.300 employees. Listed on the Hong Kong Stock Exchange, in 2007 overall sales of 400 million euro were achieved with a growth of 36.7% on the previous year. As of December 2007, the Li Ning brand is distributed through 5.233 stores in China, out of which about 5.000 are franchise operations and the remaining are directly operated. Sales by product category are divided into: 51% clothing, 42.7% footwear and 6.3% accessories. Li Ning is a sponsor, among others, of the national basketball teams of Spain and Argentina, of Shaquille O'Neal and China's national gymnastics and diving squads.


About Lotto Sport Italia
With headquarters in the Italian shoe district of Montebelluna, Veneto region, Lotto Sport Italia is the leading Italian company in the production and distribution of sports footwear, clothing and accessories. The company's products are distributed in over 80 countries worldwide through independent sports-article stores, specialised chain-stores, large stores with specialized sports departments, and in over 300 monobrand stores. Lotto ended 2007 with overall sales at 300 million euro with a growth of +8% on the previous year, divided into: 44% footwear, 50% clothing and 6% accessories.

www.lottosport.com