BURANI DESIGNER HOLDING'S LISTED LEATHER GOODS DIVISION ANTICHI PELLETTIERI ANNOUNCES FIRST HALF RESULTS, 2008

Burani Designer Holding N.V (AIM: BRDH), a company offering Italian lifestyle products and services to customers world-wide, today notes that the company's listed leather goods division, Antichi Pellettieri, majority owned by BDH's subsidiary Mariella Burani Fashion Group S.p.A (MBFG), in which BDH holds a 60.88% stake, made the following announcement today: 

PRESS RELEASE

ANTICHI PELLETTIERI

Cavriago - August 28, 2008

CONTINUED DYNAMIC GROWTH FOR ANTICHI PELLETTIERI IN THE 1ST HALF 2008 WITH REVENUE GROWTH OF +26%, ACCOMPANIED BY EBITDA GROWTH OF +20%,  AND PRETAX INCOME GROWTH OF +23%.

The Board of Directors of Antichi Pellettieri Spa approved the consolidated financial statements for the six months ended June 30, 2008 which reflect:

• Revenues of € 169 million (+ 26.2 %) vs. € 133.9 million in 1H 2007.

• EBITDA of € 23.3 million (+ 20.0%) vs. € 19.5 million in 1H 2007.

• EBIT of € 19.2 million (+ 24.7%) vs. € 15.4 million in 1H 2007.

• Pre-tax income of € 14.6 million (+23.0%) vs. € 11.9 million in 1H 2007.

FINANCIAL HIGHLIGHTS - 1H 2008

Consolidated revenues of € 169 million (+26.2%) compared to € 133.9 million in first half 2007, reflect the consolidation of Dadorosa as well as strong organic revenue growth (+19%), driven primarily by:

• The optimal performance of the footwear and handbags division, driven by the excellent results of Baldinini (+43%) and the continued growth of the Coccinelle and Braccialini handbags and accessories collections;

• Dynamic organic growth in emerging luxury markets (+24%), driven by the optimal performance of Russian and Eastern European markets (+34%), as well as the Middle East (+30%), and the continued growth realised in Italy (+18%), again driven by the Baldinini, Braccialini, and Coccinelle brands.

Ebitda reached € 23.3 million, growing +20.0% compared to the same period in 2007. Ebitda growth is attributable to both, the consolidation of Dadorosa and the strong sales mix that reflects: 

• Own brands which generate 85 % of consolidated revenues;

• Direct distribution channels that represent 59 % of consolidated revenues with 22% generated from DOS and Franchisees;

• Export markets that generate 65.0 % of consolidated revenues, with 45% generated from emerging luxury markets.

Ebit increased to € 19.2 million (+24.7%) for the six month period from € 15.4 million in 1H 2007.

Pre-tax income of € 14.6 million (+23.0%) from € 11.9 million in the same period of 2007.

Net Financial Position at June 30, 2008 reflected Net Debt of € 107.7 million vs. € 63.5 million at December 31, 2007. The debt/equity ratio remains optimal at 0.63 notwithstanding the fact that the € 118 million of cash generated on August 7, 2008 from the sale of 49% of APBags to 3i has not been recognised.

STRATEGIC AND OPERATING HIGHLIGHTS - 1H 2008

The 1st Half 2008 has proven extremely dynamic thanks to:

• The acquisition by 3i of 49% of APBags S.p.A., a newly established sub-holding that houses the Group's handbags and accessories companies. The transaction is expected to accelerate the development of APBags in the Chinese and Indian markets (August); 

• The acquisition of 100% of Finduck, a company that owns the renowned Mandarina Duck brand, was closed on June 24, 2008. As noted in the auditors' report, the six days of operations of Finduck have not been consolidated in the financials of AP for the six month period ended June 30, 2008 as it was not possible to report only six days of operations according to International Accounting Standards.

• The continued extension of the Group's retail network, which counts 221 boutiques at June 30, 2008 (51 DOS and 160 Franchisees), including the 39 boutiques (9 DOS and 30 franchisees) inaugurated in the first six months of this year, of which over 60% are located in emerging markets;

• New product launches for the Group's own brands and for third party brands including Aquascutum, Gherardini and Amazon Life;

• The introduction and development of the Group's footwear collections in Cina;

In addition, the Board of Directors has agreed to convoke an extraordinary shareholders' meeting on October 6, 2008 as is required in order to transfer the AP shares from the Expandi segment of the Italian Stock Exchange to MTA in continuous trading.

OUTLOOK 2008

As witnessed in the above results, the accessible luxury goods market continues to offer many opportunities for Antichi Pellettieri and the Group is benefiting from its consolidated position in this market as well as from its strong presence in emerging markets, a key growth driver. The positive performance in the first half of the year, the encouraging sell-out statistics from F/W 2008-2009 collections, the contribution of Finduck, and the benefits of entering into a strategic partnership with 3i combine to allow management to confirm dynamic revenue growth expectations for the year.

"The Financial Reporting Officer, Daniele Bardini, certifies - pursuant to art. 154-bis, paragraph 2 of the Uniform Finance Act (Legislative Decree 58/1988) - that the information contained in this press release corresponds to the accounting documents, ledgers and entries".

REQUIREMENTS OF THE EXPANDI SEGMENT OF BORSA ITALIANA

The table below indicates adherence on, and for the year ended, June 30, 2008 to profitability and capitalisation requirements of Italian Stock Exchange regulation Article 2A.2.1,5.

Contacts

Carol Brumer Investor Relations and Strategic Development: cbrumer@mariellaburani.com, tel. (+39) 02 76420111 

Daniela Zari Director of Corporate Communication: dzari@mariellaburani.com, tel. (+39) 02 76015354

Antichi Pellettieri is a European leader in the accessible segment of the luxury goods market with a consolidated international presence. The Group designs, produces, and distributes handbags and accessories, footwear, and leather apparel collections characterised by top quality and innovative design. A flexible business model provides for control at all critical phases of the production and distribution cycle including, product design and development, production planning, raw material procurement, quality control, marketing, public relations, and distribution. Production and logistics functions are outsourced to an established and qualified base of third party contractors, closely controlled by AP to guarantee quality and efficiency.  

CONSOLIDATED FINANCIAL STATEMENTS

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CONSOLIDATED BALANCE SHEET ( Continued)

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CONSOLIDATED PROFIT AND LOSS ACCOUNT

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CONSOLIDATED CASH FLOW STATMENT

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Enquiries:

www.buranidh.com

NOTES TO EDITORS

The BDH Group offers a complementary range of "Italian lifestyle" products and services to an international customer base.  BDH is a player in fashion apparel, leather goods and jewellery through its subsidiary Mariella Burani Fashion Group S.p.A. (MBFG), and in three complementary business segments - beachwear & underwear, wellness spas & skincare and food design. BDH, listed on London's Alternative Investment Market (AIM) in June 2007, focuses on growth through the acquisition and integration of quality "Italian lifestyle" businesses and the creation of operating divisions able to benefit from scale and synergies of the BDH Group.  The management believes that the in-depth knowledge of luxury products, the value created by strategic shareholders, the skills of the BDH team management as well as the Group's investment approach, represent a great opportunity of value creation for shareholders.   

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