BRDH Burani

RNS Number:5851G
Burani Designer Holding N.V.
30 October 2007



     Total return swap in respect of Mariella Burani Fashion Group ('MBFG')


Burani Designer Holding N.V. ("BDH" or "the Company") announces that on 29
October 2007 it entered into a short-term cash-settled total return swap of up
to approximately nine months, with Lehman Brothers International (Europe), in
respect of 791,192 MBFG shares (the "Shares"). The Shares represent 2.6% of the
total outstanding shares of MBFG.


BDH has taken the decision to enter the swap because it believes that it is in
the best interest of the Company to have economic exposure to the Shares for the
duration of the swap, in the same way as if it directly owned the Shares, but at
a considerable reduced capital requirement.  BDH will not have legal ownership
of, or voting rights over, the Shares.


The initial price of the shares referenced by the swap is Euro 22.60 per share ('
the Initial Price'), corresponding to a notional amount of approximately Euro
17.9m.  At the maturity or the unwinding of the swap, if the prevailing price of
the Shares (subject to certain administrative costs of the swap counterparty) ('
the Final Price') is above the Initial Price, then BDH will receive the
aggregate value of the increase.  Conversely, if at the maturity or the
unwinding of the swap the Final Price is below the Initial Price, then BDH will
have to pay the aggregate value of the difference between the Final Price and
the Initial Price.  For the duration of the swap, BDH will receive all dividends
paid by MBFG on the Shares, net of any tax applicable.


Provided BDH would otherwise be free to deal in MBFG shares, the Company may
agree with the swap counterparty to unwind the swap at any time during the
duration its term.



MBFG, which is controlled by BDH, operates in the fashion apparel, leather goods
and jewellery market segments. Its ordinary shares are listed on the Mercato
Telematico Azionario of Borsa Italiana and on the Star segment since it was
established in March 2001. For the year ended 31 December 2006, MBFG reported
pre-tax profits of Euro 68.8m and for the six months ended 30 June 2007, MBFG
reported pre-tax profits of Euro 34.7m.



Since its IPO in June 2007, BDH has purchased a total of 587,032 MBFG shares,
for a total consideration of Euro 13.7m, taking its ownership from 52.8% to 54.7%
of MBFG's outstanding share capital. The current market value of the stake is
approximately Euro371m, based on MBFG's closing share price of Euro 22.65 as at 29
October 2007.



As a result of these share purchases, together with the effect of the swap
described above, BDH currently has economic exposure to 57.4% of MBFG
outstanding share capital.



Enquiries:

Burani Designer Holding N.V.            Tel: +39 02 7642 0111 / +39 348 256 1971
Carol Brumer

Lehman Brothers International (Europe)  Tel: +44 20 7102 1000
Matteo Saviotti
Ed Boyce

Citigate Dewe Rogerson                  Tel: +44 20 7638 9571
Kate Delahunty
Sarah Gestetner



www.buranidh.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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