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

5. PROPERTY, PLANT AND EQUIPMENT—NET

Property, plant and equipment-net consisted of the following (in thousands of Euro):

115

Depreciation and amortization expense relating to property, plant and equipment for the years ended December 31, 2003, 2004 and 2005 was Euro 92.2 million, Euro 101.1 million and Euro 129.6 million, respectively. Included in other equipment is approximately Euro 26.6 million and Euro 69.9 million of construction in progress as of December 31, 2004 and 2005, respectively.

The increase in the value of the aircraft is due to the purchase of a new aircraft in 2005 to replace the previous aircraft which became obsolete. The net book value of the old aircraft of Euro 10.8 million is included in “Asset held for sale” for a net book value, which is less then the fair value less cost to sell, and the aircraft is expected to be sold in June 2006. The Company has stopped recording depreciation expense on such asset beginning on the date that the asset was determined to be “held for sale.”

5. PROPERTY, PLANT AND EQUIPMENT—NET

Property, plant and equipment-net consisted of the following (thousands of Euro):

Depreciation and amortization expense relating to property, plant and equipment for the years ended December 31, 2002, 2003 and 2004 was Euro 103.8 million, Euro 92.2 million and Euro 101.1 million, respectively. Included in Other equipment is approximately Euro 16.5 million and Euro 26.6 million of construction in progress as of December 31, 2003 and 2004, respectively.

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