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

a)              OPSM

On November 26, 2004, the Company, through its wholly owned subsidiary, Luxottica South Pacific Pty Limited, made an offer for all the un-owned remaining outstanding shares of OPSM.

On February 7, 2005, on the close of the offer, the Company acquired 15.5 percent for an aggregate total of 98.5 percent of OPSM’s shares, which is in excess of the compulsory acquisition threshold. Subsequently, the Company announced the start of the compulsory acquisition process for all remaining shares in OPSM not already owned by the Company. The compulsory acquisition process was completed on March 23, 2005 and as of that date the Company held 100 percent of OPSM’s shares. The acquisition of the remaining OPSM shares was accounted for in accordance with SFAS 141, Business Combinations, and accordingly, the purchase price of Euro 61.9 million or Australian dollar 102.9 million in cash (including approximately Australian dollar 3.5 million of direct acquisition-related expenses and dividends to receive) was allocated to the assets acquired and liabilities assumed based on their fair value at the date of the acquisition. Since there was no additional fair value of assets acquired and liabilities assumed, the difference between the purchase price and the value of the minority interest in OPSM has been allocated entirely to goodwill for an amount of Euro 46.3 million (Australian dollar 77.7 million).

a) OPSM

On November 26, 2004, the Company, through its wholly owned subsidiary, Luxottica South Pacific Pty Limited, made an offer for all the un-owned remaining outstanding shares of OPSM.

On February 7, 2005, on the close of the offer, the Company acquired 15.5% for an aggregate total of 98.5% of OPSM’s shares, which is in excess of the compulsory acquisition threshold. Subsequently, the Company announced the start of the compulsory acquisition process for all remaining shares in OPSM not already owned by the Company. The compulsory acquisition process was completed on March 23, 2005 and as of that date the Company held 100% of OPSM’s shares. The acquisition of the remaining OPSM shares was accounted for in accordance with SFAS 141, Business Combinations, and accordingly, the purchase price of Euro 61.9 million or AU$ 102.9 million in cash (including approximately AU$ 3.5 million of direct acquisition-related expenses and dividends to receive) was allocated to the assets acquired and liabilities assumed based on their fair value at the date of the acquisition. Since there was no additional fair value of assets acquired and liabilities assumed, the difference between the purchase price and the value of the minority interest in OPSM has been allocated entirely to goodwill for an amount of Euro 46.3 million (AU$ 77.7 million).