Girard Perregaux

PPR announced the signature of a long-term strategic partnership with the Sowind Group, a

Swiss holding company based in La Chaux de Fonds headed by Luigi Macaluso. The Sowind

Development Centre, as well as Sowind Manufacture, maker of high-end watch movements.

Under the partnership, PPR will own a 23% interest in the Sowind Group, with the possibility of

increasing its stake under the terms of a shareholders’ agreement. Mr. Macaluso will retain

control of the company.

This strategic partnership represents the materialisation of a shared vision between the two

PPR and Girard-Perregaux to combine their know-how and knowledge base in terms of R&D,

design, brand management, distribution networks and sourcing. Mr Macaluso will join the

Gucci Group Management Committee and the Boucheron Board of Directors. François-Henri

Pinault and Robert Polet will become Directors on the Sowind Board.

This long-term agreement offers Girard-Perregaux, one of the last independent, high-end Swiss

watch "Manufactures", and the JeanRichard brand the means to fully exploit their potential for

growth and innovation by teaming up with one of the major players in the luxury goods

industry. As for PPR, the agreement confirms the Gucci Group’s goal of building a strong

The Gucci Group brands will thus benefit from outstanding watch-making expertise and will

extend their sourcing for timepiece components.

About PPR

PPR develops a portfolio of high-growth global brands. Through its Consumer and Luxury brands, PPR

generated sales of EUR 19.8 billion in 2007. The Group is present in 90 countries with approximately

93,000 employees. PPR shares are listed on Euronext Paris (# 121485, PRTP.PA, PPFP).

To explore the universe of PPR brands go to www.ppr .com: Fnac, Redcats Group (La Redoute,

Vertbaudet, Somewhere, Cyrillus, Daxon, Ellos, The Sportsman’s Guide, The Golf Warehouse and

brands of the plus-size division), Conforama, CFAO, Puma and the Luxury brands of Gucci Group

(Gucci, Bottega Veneta, Yves Saint Laurent, YSL Beauté, Balenciaga, Boucheron, Sergio Rossi,

Alexander McQueen and Stella McCartney).

Sowind Group, the pinnacle of Swiss watchmaking Art

The Sowind Group is a Swiss « Haute Horlogerie » company owned by Luigi Macaluso who has been

heading it since 1992.

Based in La Chaux-de-Fonds, the Group incorporates the Girard-Perregaux and JeanRichard brands, a

watch « Manufacture » that develops and produces a complete portfolio of high-end movements (more

than 100 variations) and collections of mechanical watches.

The Research and Development Centre is the company’s cornerstone, with more than 80 patents and a

strong percentage of the firm’s turnover being re-invested in it.

Girard-Perregaux’s roots date back to 1791 and the company history is rich in innovations bringing

together design and technology, like the renown Tourbillon with three gold bridges created by Constant

Girard in the 19th century.

Girard-Perregaux is represented globally in 550 prestigious points of sale and several exclusive boutiques,

like the one in Gstaad.

JeanRichard is a brand dedicated to Daniel JeanRichard (a pioneer of watchmaking in the Neuchatel region

during the 17th century) and presents a daring and innovative interpretation of the codes of traditional

Swiss watchmaking.

(source: Girard-Perregaux and PPR)