In reply to the letter with protocol No. 1244 of the Capital Markets Commission in connection with press announcements and following our comment regarding the same issue dated 19/2/2008, we wish to clarify that currently negotiations between managers of the Folli Follie group and basic shareholders of the company Lapin are still in progress but until present there have not been made any conclusions or agreements on the essential parts of the negotiations. For this reason, whatever is referred to in these press announcements with regard to this matter is premature and does not reflect reality. We point out that, our standard approach in terms of transparency and in case that any event occurs that must be published, the Folli Follie Group will promptly inform the competent authorities and the investment community.