29/11/2006 - OTTO ACQUIRES ETONIC

The company led by Andrea Tomat bolsters its position in the US by acquiring a historical brand manufacturer of footwear for running, golf, bowling and walking.

The goal is to double turnover in three years.

Trevignano (Italy), 29 November 2006.- Lotto Sport Italia, world leader in the production of technical footwear for football and tennis, announces its acquisition of Etonic, a major US shoe manufacturer for running, golf, bowling and walking.

The acquisition allows Lotto to significantly strengthen its US market position by bringing an important and well-known brand within its portfolio. According to a recent study, Etonic is indeed one of the best-known sports footwear brands among US consumers, and has succeeded in becoming undisputed leader in the segments of golf and bowling. In the running segment, Etonic is quickly regaining the prestigious positions it held in the past. In 2006, the Jepara shoe was judged best on the market by the editorial staff at Running Network. Etonic has also presented a walking collection of great appeal to build positions of leadership in a market worth about 500 million dollars in the United States alone.

Etonic is without doubt a historic brand in the world of sneakers. Founded in 1876 in Brockton, Massachusetts, it had always been considered as a strongly innovative company. After a lacklustre period during its previous management period, in 2003 it was acquired by a group of managers and has quickly moved on. The results have been immediate: in 2006, with a growth of over 45% on the previous year, the company is set to reach sales of just under 30 million dollars.

Its products, all in the mid-to-high price range, reach a country-wide distribution in the United States, above all in stores offering highly professional and specialized wear in the respective sport worlds.

Thanks to this important operation, the company led by Andrea Tomat (who will become also President of Etonic) will therefore be able to add new sectors of excellence to those of football and tennis, where Lotto is now among the world's leaders.

Important synergies are expected also in distribution, as Lotto will bring the Etonic brand and products into Europe, by exploiting its sales network. At the same time - from the end of 2007 - Lotto's products will be marketed and distributed in the US by the operations set up of Etonic.

The range of Etonic products is wholly complementary to that of Lotto's without any overlap - stated Andrea Tomat, President of Lotto Sport Italia SpA. On the contrary, I'm certain we will generate important synergies between the innovative solutions introduced by Lotto in its chosen markets and those developed by Etonic, which has always enjoyed the reputation of being an R&D leader.

I am particularly satisfied with this acquisition - continued Tomat. We can count on a top-class management team, which succeeded in relaunching the brand in a short time span and which I am certain will take Etonic to the highest level.

Having reached our current stage of growth - said Thomas W. Seeman, CEO of Etonic - it was essential for Etonic to find a leading industrial partner able to support our growth process in the US and offer us the possibility of gaining fast access to new markets".