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

d)              Pending acquisitions:

· In February 2007, the Company completed the acquisition of the retail optical business of D.O.C Optics, comprising approximately 100 stores located primarily in the midwest United States, for approximately U.S.$110 million in cash (Euro 83.4 million converted at the December 31, 2006 Noon Buying Rate as discussed in Note 1). The Company expects to rebrand the acquired stores as “LensCrafters” and “Pearle.” The acquisition will be accounted for in accordance with SFAS 141, and accordingly, the purchase price including direct acquisition-related expenses will be allocated to the assets acquired and liabilities assumed based on their fair value at the date of the acquisition. The acquisition was made as a result of the Company’s strategy to continue expansion of its retail business in the United States.

· On April 25, 2007, in compliance with the decision of the Supreme Court of India, the Company launched a public offer to acquire 7,545,240 shares or approximately 31 percent of the equity shares of RayBan Sun Optics India Ltd. through the Company’s subsidiary, Ray Ban Indian Holdings, Inc. 6,454,280 shares were tendered in the offer, which closed on May 14, 2007. Effective upon the share transfers entry in the share register on June 26, 2007, the Company’s stake in RayBan Sun Optics India Ltd. increased to 70.5 percent. The Company paid total consideration of approximately Euro 13.0 million for the tendered shares. RayBan Sun Optics India Ltd. is a company listed on the Bombay Stock Exchange. The Company acquired its interest in RayBan Sun Optics India Ltd. in connection with the purchase of the RayBan eyewear business from Bausch & Lomb in 1999.

· In the second quarter of 2007, the Company completed its acquisitions of two prominent specialty sun chains in South Africa, with a total of 65 stores, for total consideration of approximately Euro 10 million. The two acquisitions represent an important step in the expansion of  the Company’s sun retail presence worldwide.

· On June 20, 2007, the Company announced that it had entered into a definitive merger agreement with Oakley, Inc, a worldwide specialist in sport performance optics with brands including Dragon, Eye Safety Systems, Fox Racing, Mosley Tribes, Oliver Peoples and Paul Smith Spectacles, and retail chains including Bright Eyes, Oakley Stores, Sunglass Icon and The Optical Shop of Aspen. As part of the merger, the Company will acquire all of the outstanding shares of Oakley for a cash purchase price of U.S.$29.30 per share, together with the purchase of all outstanding options and other equity rights at the same price per share less exercise price. The total purchase price will be approximately U.S.$2.1 billion (approximately Euro 1.6 billion). The transaction is expected to close in the second half of 2007.

d) Pending acquisitions

·             In February 2007, the Company completed the acquisition of certain assets and assumed certain liabilities of D.O.C Optics Corporation and its affiliates, an optical retail business with approximately 100 stores located primarily in the Midwest United States of America for approximately US$ 110 millions in cash (Euro 83.4 million converted at the December 31, 2006 Noon Buying Rate as discussed in Note 1). The Company expects to convert the stores acquired to the current operating names, “LensCrafters” and “Pearle”. The acquisition will be accounted for in accordance with SFAS 141, and accordingly, the purchase price including direct acquisition-related expenses will be allocated to the assets acquired and liabilities assumed based on their fair value at the date of the acquisition. The acquisition was made as a result of the Company’s strategy to continue expansion of its retail business in the United States of America.

·             On January 25, 2007, Luxottica Group announced that, in compliance with directions issued by the Supreme Court of India on December 12, 2006, it intends to launch a public offer to acquire up to an additional 20% of the equity shares of RayBan Sun Optics India Ltd. through the Group’s subsidiary, RayBan Indian Holdings, Inc. RayBan Sun Optics India Ltd. is a company listed on the Bombay Stock Exchange.

Should the offer be fully accepted, Luxottica Group’s indirect interests in RayBan Sun Optics India Ltd. will increase to approximately 64%, from its current 44% stake. The Group acquired its interest in RayBan Sun Optics India Ltd. in connection with the purchase of the Ray-Ban eyewear business from Bausch & Lomb in 1999.

Luxottica Group expects the maximum investment related to this offer to be approximately Euro 11 million, including incremental interest to be paid to certain shareholders. These amounts will not have a material financial impact on the Group.

·             On March 23, 2007 Luxottica Group announced that it has acquired two prominent specialty sun chains in South Africa, with a total of 65 stores. The two acquisitions represent an important step in the expansion of the Company’s sun retail presence worldwide. Luxottica Group’s total investment in the two transactions will be approximately Euro 10 million. Both transactions are expected to close during the second quarter of 2007, subject to customary closing conditions.