BURANI DESIGNER HOLDING'S SUBSIDIARY MARIELLA BURANI FASHION GROUP ANNOUNCES FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 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 subsidiary Mariella Burani Fashion Group S.p.A (MBFG), in which it holds a 60.88% stake, has made the following announcement: 

PRESS RELEASE

MARIELLA BURANI FASHION GROUP

Cavriago (RE) -  August 29, 2008

THE BOARD OF DIRECTORS OF MARIELLA BURANI FASHION GROUP SPA APPROVED THE FINANCIAL RESULTS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2008 REFLECTING ORGANIC REVENUE GROWTH OF +9.4% ACCOMPANIED BY MORE THAN PROPORTIONAL GROWTH OF EBITDA +14.8% AND EBIT +34.5%

The Board of Directors of Mariella Burani Fashion Group Spa yesterday approved the

consolidated financial statements for the six month period ended June 30, 2008, which reflect:  

• Revenues of €325.3 million from €346.3 million in 1H 2007. While total revenues declined by during the period, the Group realised +9.4% organic growth.

• EBITDA of €40.1 million (+14.8%) vs. €34.9 million in 1H 2007.

• EBIT of €30.5 million (+34.5%) vs. €22.7 million in 1H 2007.

• Pretax income of €12.8 million (+42.1%) vs. € 9 million in 1H 2007.

• Net Financial Position (Debt) of €260.6 million, reflecting a debt/equity ratio of 0.84 notwithstanding the important investments effected during the period (including the acquisition of 100% of Finduck (Mandarina Duck), 14% of Francesco Biasia, and 35% of Jaya). The Net Financial Position at June 30, 2008 does not reflect the € 118 million proceeds received on August 7, 2008 from the sale of 49% of APBags to 3i fund. 

IAS 8 - Consolidated financial statement 2007 and 2006 Restatement

The Board of Directors of Mariella Burani Fashion Group Spa yesterday also approved, following prescriptions of IAS 8, the restatement on 2007 and 2006 consolidated financial statements before announced through July 1 and 2, 2008 press releases and in the July 3, 2008 conference call. For this topic and for subsequent actions carried on by the Company please see dedicated paragraph in the first half financial statement 2008.  

FINANCIAL HIGHLIGHTS 1H 2008

Consolidated revenues of €325.3 million from €346.3 million in 1H 2007. The decline in total revenues during the six month period, notwithstanding the first time consolidation of Valente, Calgaro and Dadorosa, is explained by the sale of the group's multi-brand retail division in June, 2007. 

The Group realised strong organic revenue growth of 9.4%, driven primarily by:

• the Leather Goods division (Antichi Pellettieri) that realised 19.8% organic growth during the period; primarily attributable to the excellent results from Baldinini (+43%) and the strong performance from Coccinelle and Braccialini handbags and accessories collections.

• the 22% organic growth realised by the Digital Fashion Division.

• 16% organic growth in revenues generated from third party licenses.

• strong growth from emerging luxury markets (+ 23%), particularly in Russia (+32%), Eastern Europe (+17%), and the Middle East (+54%).

Ebitda reached €40.1 million for the year (+14.8%) vs. € 34.9 million in 1H 2007, reflecting an Ebitda margin of 12.3% (vs. 10.1%) for the same period in 2007. The restated 2007 Ebitda is impacted by the sale of the multibrand retail division.  

The Group's sales mix reflects:

• Leather Goods and Fashion Jewellery divisions, which together generated 59.4% of revenues vs. 44% in 1H 2007;

• Export sales which generated 64.7% of revenues with emerging markets representing 37.9%, and US and Japan, together limited to 5% of the Group's revenues.

• Own brands which generated 84.8% of revenues;

• Direct distribution channels that generate 63% of revenues with 21.8% generated from DOS and Franchisees.  

Ebit increased to €30.5 million (+34.5%) from €22.7 million of the same period 2007.

Pretax income increased to €12.8 million (+42.1%) for 1H 2008 vs. € 9 million in 1H 2007.

Net Financial Position (Debt) of €260.6 million, reflecting a debt/equity ratio of 0.84 from € 193.4 million at December 31, 2008 notwithstanding the important investments effected during the period (including the acquisition of 100% of Finduck (Mandarina Duck), 14% of Francesco Biasia, and 35% of Jaya). The Net Financial Position at June 30, 2008 does not reflect the € 118 million proceeds received on August 7, 2008 from the sale of 49% of APBags to 3i fund. 

STRATEGIC AND OPERATING HIGHLIGHTS - 1H 2008

MBFG has been extremely active in 2008 with important strategic acquisitions and alliances as well as a continuous focus on emerging markets. In addition, the Group has reinforced its international retail network, launched new products and collections, and made notable senior management appointments.  

Notably, on August 8, 2008 Mariella Burani Family Holding (MBFH), controlled by BDH, launched a partial tender offer for up to 15% of the share capital of MBFG at a price of € 17.5 per share. MBFG filed the related Offer Document to Consob on August 28, 2008.

In addition important strategic acquisitions and alliances effected by MBFG and its subsidiary 

Antichi Pelletieri during the period include:

• the acquisition by 3i fund of 49% of APBags, a newly established sub-holding that houses Antichi Pellettieri's handbags and accessories companies. The transaction is expected to accelerate the development of APBags in the Chinese and Indian markets; 

• the acquisition by Antichi Pellettieri of 100% of Finduck, a company that owns the renowned Mandarina Duck brand (June 24, 2008). As noted in the auditors' report, the six days of operations of Finduck have not been consolidated in the financials 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 280 boutiques at June 30, 2008 (90 DOS and 160 Franchisees), including the 44 boutiques (11 DOS and 33 franchisees) inaugurated in the first six months of this year, of which over 60% are located in emerging markets;

• the launch of new products and collections for the Group's own brands and for renowned third party brands including John Galliano jewellery, Bickkembergs children's wear, Aquascutum footwear, Gherardini and Amazon Life handbags and accessories;

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

• the further integration of recently acquired companies with particular attention to the development of synergies within the Group.

In addition, the Antichi Pellettieri Board of Directors on the last August 27th has agreed to convene 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 results, the accessible luxury goods market continues to offer MBFG numerous opportunities. MBFG benefits from both, its strong position in this market segment as well as its consolidated presence in emerging markets.  In addition, the Group's presence in the USA and Japan, today considered higher risk markets, is today limited to 5% of MBFG's total revenues.  

The encouraging sell-out statistics of the Spring/Summer 2008 collections, the positive performance in the first half of the year, combined with the acquisition of Finduck Srl, lead management to expect continued dynamic growth in 2008.

"The Financial Reporting Officer, Giuseppe Gullo, 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".

Mariella Burani Fashion Group (MBFG) designs, produces and distributes world wide a diversified and complementary range of Luxury apparel, footwear, leather accessory and jewellery collections under its own brands and under license for prestigious international designers. MBFG founded in 1960 by Walter Burani, Chairman and CEO of the Group listed in the STAR segment of the Italian stock exchange since July, 2000, is today an internationally recognised public company with an established position in the accessible luxury goods market. The Group's dynamic revenue growth is attributable to internal development including product diversification, brand expansion, and new geographic market penetration. The Group has also made strategic acquisitions to capitalise on the know-how and experience developed by niche players in the Italian apparel, knitwear, textile and leather goods sectors. MBFG manages to provide top quality luxury goods at accessible prices by capitalising on the strength and flexibility provided by Italy's industrial districts, world renown for their excellence in the development of luxury products. The Group's aim is to become one of the leading players in the accessible luxury market worldwide by further developing its product offering, its brand portfolio, and its global distribution network.

Contacts:  

Investor Relations e Corporate Development: Carol Brumer, tel. (+39) 02 76420111 e-mail: cbrumer@mariellaburani.com

Corporate Communication: Daniela Zari, tel. (+39) 02 76015354 e-mail: dzari@mariellaburani.com

CONSOLIDATED FINANCIAL STATEMENTS at  30th June 2008

Consolidated balance sheet - Assets

in €/000

Consolidated balance sheet - Liabilities

in €/000

(**)These amounts are modified over the official Balance Sheet as a result of adjustments made in accordance with IAS accounting principle 8 as described in the related paragraph of the 1H 2008 Note to Financial Statement.

Consolidated profit and loss account

in €/000

(**)These amounts are modified over the official Balance Sheet as a result of adjustments made in accordance with IAS accounting principle 8 as described in the related paragraph of the 1H 2008 Note to Financial Statement.

CONSOLIDATED STATEMENT OF CASH FLOWS AT JUNE 30, 2008

in €/000

BDH 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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