Lotto Sport Italia is proceeding with its strategy of expanding its brand into other sectors. Lotto announced that it has renewed the licensing agreement with Fraly for the manufacture and distribution of sports underwear collections under the Lotto brand. The collaboration between these two companies is to continue for a further 5 years, until December 2009, and will mainly apply to the European area.

Under the terms of the renewed agreement, Fraly of Bergamo will continue to manufacture and distribute sports-style underwear for men and women, further developing their research into the design of high quality items.

After a first phase in distribution that has seen the company mainly concentrating on the Italian market, from this year Fraly expects to expand in other countries: the next target will be the extension within the European market, with the help, in some countries, of sales synergy with Lotto Sport Italia.

The relations between Lotto Sport Italia and Fraly, a company with consolidated experience in the field of underwear began in 1999. Since then the turnover generated by the licensing agreement has grown at a high rate (700% more in 2004 than in 2000), the total in 2004 being about €2.2 million.

Apart from underwear, the Lotto Sport Italia has current licensing agreements in stationery and – an addition this year – in cosmetics. These agreements make up 2% (€6 million) of the company’s total turnover.