Polo Ralph Lauren Enters into Licensing Agreement with Luxottica Group, S.p.A.

"This new agreement is another key strategic step in thedevelopment of our worldwide luxury accessories business as we takethis important fashion category and aggressively extend it over thelong term," said Ralph Lauren, Chairman and Chief Executive Officer."Luxottica stands apart in the industry because of their expansiveinternational presence and their commitment to extensive verticalretail stores. This makes them the ideal long-term partner for RalphLauren eyewear and is consistent with our objective to elevate ourbrand in the accessories category on a global basis."

The license calls for a minimum royalty guarantee, which will beprepaid on January 1, 2007. The initial payment will be approximately$200 million, the discounted present value of the guaranteed minimumroyalty over the life of the contract. This amount will be amortizedas royalty income over the life of the agreement.

Luxottica is the global leader in the premium and luxury eyewearsector, with nearly 5,500 optical and sun retail stores in NorthAmerica, Asia-Pacific and China. Luxottica also distributes productsin 120 countries through wholesale subsidiaries and independentdistributors. Luxottica will assume the operations of the Ralph Laureneyewear store on Madison Avenue in New York City in January 2007.

Polo Ralph Lauren's current eyewear license agreement with SafiloS.p.A. expires on December 31, 2006.

Polo Ralph Lauren Corporation is a leader in the design, marketingand distribution of premium lifestyle products in four categories:apparel, home, accessories and fragrances. For more than 38 years,Polo's reputation and distinctive image have been consistentlydeveloped across an expanding number of products, brands andinternational markets. The Company's brand names, which include "Poloby Ralph Lauren", "Ralph Lauren Purple Label", "Ralph Lauren", "BlackLabel", "Blue Label", "Lauren by Ralph Lauren", "Polo Jeans Co.","RRL", "RLX", "Rugby", "RL Childrenswear", "Chaps", and "Club Monaco"among others, constitute one of the world's most widely recognizedfamilies of consumer brands. For more information, go tohttp://investor.polo.com.