Luxottica Group, S.p.A. (LUX)

Concentration of Supplier Risk—

Oakley Inc. is one of the largest suppliers of products to the Company’s Retail Division. For the 2003, 2004 and 2005 fiscal years, Oakley accounted for approximately 8.7 percent, 6.8 percent and 4.9 percent of the total merchandise purchases from suppliers, respectively. As of December 31, 2005, the previous purchase contract has expired and the Company is currently negotiating a new contract. Management believes that the loss of this vendor would not have a significant impact on the future operations of the Company as it could replace this vendor quickly with other products manufactured by the Company and other third-party suppliers.

As a result of the OPSM and Cole acquisitions, Essilor S.A. has become one of the largest suppliers to the Company’s Retail Division. For the 2004 and 2005 fiscal years, Essilor S.A. accounted for approximately 9.9 percent and 10.0 percent of the Company’s total merchandise purchases, respectively. The Company has not signed any specific purchase contract with Essilor. Management believes that the loss of this vendor would not have a significant impact on the future operations of the Company as it could replace this vendor quickly with other third-party suppliers.

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Concentration of Supplier Risk—

Oakley Inc. is one of the Company’s largest suppliers of products to its retail division. For the 2002, 2003 and 2004 fiscal years, Oakley accounted for approximately 11.8 percent, 8.7 percent and 6.8 percent of the total merchandise purchases from suppliers, respectively. In December 2004, the Company signed a new one year purchase contract with Oakley. Management believes that the loss of this vendor would not cause a significant impact on the future operations of the Company as it could replace this vendor quickly with other products manufactured by the Company and other third party suppliers.

As a result of the OPSM and Cole acquisitions, Essilor S.A. has become one of the Company’s largest suppliers to its retail division. For the 2004 fiscal year, Essilor S.A. accounted for approximately 9.9 percent of the Company’s total merchandise purchases. The Company has not signed any specific purchase contract with Essilor. Management believes that the loss of this vendor would not cause a significant impact on the future operations of the Company as it could replace this vendor quickly with other third party suppliers.