Polo Ralph Lauren Corporation has completed the acquisition of Ralph Lauren Footwear Co., Inc., its global licensee for footwear for men, women and children, from Reebok Internaional, LTD. The purchase is a cash transaction of approximately $110 million.

The transaction is expected to be marginally dilutive to Polo Ralph Lauren's earnings in Fiscal 2006, taking into consideration purchase price allocation and the elimination of licensing royalties.

In 1996, Reebok and Polo Ralph Lauren announced that they had entered into an exclusive footwear licensing arrangement that granted Reebok the rights to design, develop, manufacture, market and distribute men's, women's and children's footwear under the Ralph Lauren Footwear label. Reebok International established a separate subsidiary to operate the Ralph Lauren Footwear business.

Credit Suisse First Boston LLC acted as financial advisor to Reebok for this transaction.