FENDI and Big M Resolve Dispute

Business Wire, April 17, 2008

NEW YORK -- Fendi Adele S.r.l., Fendi S.r.l., and Fendi North America, Inc. ("FENDI") and Big M, Inc., the owner-operator of Annie Sez and Mandee stores, today announced that they have resolved their dispute in Fendi Adele S.r.l. v. Big M, Inc. d/b/a Annie Sez, 06-CV-0245 (S.D.N.Y.) (JES)(MHD), one of several trademark counterfeiting actions brought by FENDI in federal court in Manhattan.

During the litigation FENDI demonstrated to Big M that the Fendi-branded handbags and other leather goods at issue in the case, purchased by Big M from former suppliers, were counterfeits. Big M has removed those products from the shelves of its stores.

Under the agreement, Big M has agreed to pay to FENDI a confidential settlement amount. Big M also has agreed to the entry of a permanent injunction against its purchasing or selling any Fendi-branded products in its stores without FENDI's prior written permission, and FENDI will dismiss its lawsuit against Big M.

Michael Burke, Chairman and CEO of FENDI, said, "We are pleased to put this matter behind us in a way that recognizes and allows us to protect FENDI's distinctive trademarks. We believe this resolution to be in the best interests both of our customers and Big M's customers. We applaud the expression of commitment by Big M management to protect the intellectual property rights of others and to ensure that the products it sells are genuine. For our part, we will continue our global efforts to protect the FENDI brand from trademark infringement of all kinds. All retailers need to understand that the only distributors of genuine FENDI product are FENDI itself and FENDI's authorized licensees."

A spokesperson for Big M said, "We are pleased that we have resolved our dispute with FENDI. During this litigation, FENDI provided us with information that handbags and wallets that we purchased from certain former suppliers of Big M were not genuine, authorized FENDI products. Big M regrets this and will do everything possible to make sure it does not happen again."

Founded in Rome in 1925 by Edoardo and Adele FENDI as a leather bag and fur workshop, FENDI is today one of the world's most renowned luxury lifestyle brands with collections ranging from high fashion furs, leather goods and ready to wear to home furnishings, with an international distribution network of 161 boutiques. FENDI products are also available at FENDI-authorized luxury department stores. Appreciated the world over for its quality, creativity and distinctive style which blends innovation with tradition, FENDI has been part of the LVMH Group since 2000.