Luxottica Group S.p.A. announced consolidated U.S. GAAP results for the three- and six-month periods ended June 30, 2005.

For the second quarter of 2005, consolidated sales were €1,145.6 million up 41.1%, or up 45.0% assuming constant exchange rates, from the year-ago quarter. Retail sales were €842.9 million, up 53.4%, with retail comparable store
sales up 8.3%. Total wholesale sales were up 17.6% to €368.3 million. Consolidated operating income was €165.7 million up 19.1% with the operating margin at 14.5%. Retail operating income jumped 26.6% to €100.6 million, while retail operating margin was 11.9% of sales. Wholesale operating income was €90.3 million, a 24.6% increase and wholesale operating margin 24.5%. Consolidated net income rose 153.3% to €91.1 million with a net margin of 7.9%. Earnings per share were €0.20 or US 25 cents per ADS.

For the first half of 2005, consolidated sales were €2,182.6 million, up 38.1%, or 42.5% assuming constant exchange rates. Retail sales rose 50.5% to €1,599.6 million with retail comparable store sales up +5.9%. Total wholesale sales were up 13.6% to €695.2 million. Consolidated operating income was €302.2 million, a 16.6% increase on a 13.8% operating margin. Retail operating income was €177.1 million, up 23.4% while retail operating
margin came in at 11.1% of sales. Wholesale operating income jumped 19.6% to €168.0 million, while wholesale operating margin was 24.2%. Consolidated net income was €167.4 million, up 11.5% on a 7.7% net margin. Earnings per share were €0.37 or US 48 cents per ADS.

Andrea Guerra, chief executive officer of Luxottica Group, commented: “Today we are reporting record sales results for our Group and continued progress towards the successful completion of the Cole National integration. For the quarter, we posted consolidated sales levels again well above the one billion Euro mark, in line with our forecast of between €4.0 billion and €4.15 billion for the full year. These strong results – sales for the quarter were up by over 41.1%, earnings per share by 14.9% – reflected the strength of our business and continued good performance by our entire team as we prepare for the second half of the year.”

Results of the retail division for the second quarter were particularly strong, especially in North America where the sun business experienced significant comparable store growth. Retail results were strong also in Asia- Pacific, with comparable store sales growth in excess of five percent as well as improvements in terms of profitability. Within retail, the integration of the former Cole National businesses continued to proceed smoothly, with operating margin for the quarter doubling year-over-year.

For the second quarter, the group's wholesale business experienced significant additional growth and improved profitability. Wholesale sales to third parties rose by 16.3% (by 17.0% assuming constant exchange rates), while operating margin for the entire wholesale division reached 24.5%, up 140 bps year-over-year. This significant improvement was reached despite the additional decline in the value of the U.S. currency against the Euro, by an average of nearly five percent for the quarter. Specifically, the performance of the wholesale business continued to reflect the ongoing strengthening of Luxottica Group's brand portfolio as well as improved penetration and distribution of the group's product in several markets. Key house brands posted yet another quarter of strong results – Ray-Ban Sun above all – with over 20% growth rates for the quarter both in units and value. Within license brands, it is worth mentioning the performance of Bvlgari, which continued to show potential for additional growth.

Cash flow generation was again one of the main highlights of Luxottica Group results for the quarter. For the three-month period the group generated €135.0 million, net of currency effect and before the payment of dividends. On June 30, 2005, Luxottica Group's consolidated net outstanding debt was €1,673.2 million.

                        LUXOTTICA GROUP

                      CONSOLIDATED FINANCIAL HIGHLIGHTS
                      FOR THE THREE-MONTH PERIODS ENDED
                       JUNE 30, 2005 AND JUNE 30, 2004

        KEY FIGURES IN THOUSANDS OF EURO(4)
                                                  2005     2004(5)   % Change

        NET SALES                            1,145,566      811,711    41.1%

        NET INCOME                              91,067       78,968    15.3%

        EARNINGS PER SHARE (ADS)(2)               0.20         0.18

        FULLY DILUTED EARNINGS PER SHARE
         (ADS)(3)                                 0.20         0.18


        KEY FIGURES IN THOUSANDS OF U.S.
         DOLLARS  (1) (4)
                                                  2005     2004(5)   % Change

        NET SALES                            1,442,726      977,787    47.6%

        NET INCOME                             114,690       95,125    20.6%

        EARNINGS PER SHARE (ADS)(2)               0.25         0.21

        FULLY DILUTED EARNINGS PER SHARE
         (ADS)(3)                                 0.25         0.21