LVMH to Bring Action in Amsterdam District Court Based on Enterprise Chamber's Decision that PPR Transaction is a Violation of Gucci's Legal Obligations; Enterprise Chamber Annuls ESOP

Business Wire, May 27, 1999

PARIS--(BUSINESS WIRE)--May 27, 1999--

LVMH Moet Hennessy Louis Vuitton (NASDAQ: LVMHY), the world's leading luxury products group, notes with satisfaction that the Enterprise Chamber of the Amsterdam Court of Appeals has (1) stated that the PPR share capital increase was a violation of Gucci's obligations under Dutch law to act reasonably and fairly towards its shareholders, (2) confirmed that the PPR share capital increase and the Strategic Investment Agreement constitute a change of control of Gucci and (3) granted LVMH's request to annul the ESOP as invalid under Dutch law.

On the basis of the Enterprise Chamber's conclusions, LVMH is filing an action in Amsterdam District Court, which is competent to remedy violations of Dutch law, in order to request the cancellation of the PPR share capital increase and the transfer of control. The purpose of this action is to protect the interests of all Gucci's shareholders.

LVMH Moet Hennessy Louis Vuitton is the world's leading luxury products group. Its prestige brands include Dom Perignon, Moet & Chandon, Veuve Clicquot, Krug and Pommery champagnes; Hennessy and Hine cognacs; Louis Vuitton, Loewe, and Celine luggage, leather goods and accessories; Christian Dior, Givenchy, Kenzo, and Guerlain perfumes and cosmetics; Sephora, Marie-Jeanne Godard, and Le Bon Marche in selective retailing; Fred in jewelry; and Givenchy, Christian Lacroix, and Kenzo in couture and fashion. LVMH holds a 61.25% interest in DFS, the world leader in luxury goods distribution.

LVMH Moet Hennessy Louis Vuitton ordinary shares, traded on the Paris Stock Exchange, may be accessed on the Reuter Equities 2000 Service under LVMH.PA, on Quotron under LVMHF.EU, and on Bloomberg under MC FP. Its ADRs, each equal to one-fifth of an ordinary share, trade on the NASDAQ National Market System in the US.

Additional information on LVMH can be accessed on the company's home page: http://www.lvmh.com.