BRDH Burani

RNS Number:6530K
Burani Designer Holding N.V.
24 December 2007

24 December 2007


                          BURANI DESIGNER HOLDING N.V.


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


Burani Designer Holding N.V. ("BDH") announces that on 24 December 2007 it
entered into a total return equity swap (the "Transaction") with a financial
institution ("Counterparty") over shares in MBFG (the "Shares") for a period of
up to 18 months.

During a period as determined below (the "Initial Period") following the
effective date of the Transaction, the Counterparty may, with the agreement of
BDH, increase the notional amount of the Transaction up to a maximum limit of
the lesser of (i) EUR 30,000,000 and (ii) the market value of a number of shares
representing 3.5% of the share capital of MBFG. Unless otherwise agreed by the
parties the Initial Period continues for a set period or until the date on which
the maximum limit above is attained.

Following the end of the Initial Period, the Transaction unwinds in stages. At
each unwind the differential between the volume-weighted average price of the
Shares trading on the Italian Stock Exchange on the date of the unwind and the
average price of the Shares during the term of Transaction is determined.  If
this amount is negative, BDH will pay this amount to the Counterparty. If this
amount is positive, the Counterparty pays the absolute value of such amount to
BDH. In addition BDH will pay an unwind cost.

On the final day of the Initial Period, BDH will make payments linked to EONIA
to the Counterparty. Following the end of the Initial Period, BDH will make
monthly payments linked to EURIBOR on the notional amount to the Counterparty.
For the duration of the Transaction, BDH will receive an amount equivalent to
the ordinary dividends paid by MBFG on the Shares, net of any deduction or
withholding for taxes. BDH intends to inform the market of its position under
the Transaction on a monthly basis.

BDH has taken the decision to enter this arrangement because it believes that it
is in its best interests to have the potential for further economic exposure to
the Shares for the duration of the Transaction at a reduced upfront capital
requirement. BDH will not have legal ownership of, or voting rights over, the
Shares.

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 Euro68.8m and for the nine months ended 30 September 2007, MBFG
reported pre-tax profits of Euro 47.3m.

Since its IPO in June 2007, BDH has purchased a total of 1,708,453 MBFG shares,
for a total consideration of Euro35.4m, taking its ownership from 52.8% to 58.5% of
MBFG's outstanding share capital. The current market value of the stake is
approximately Euro321m, based on MBFG's closing share price of Euro18.35 as at 21
December 2007.

In addition to its direct stake of 58.5%, BDH has synthetic exposure through
total return swaps of up to 6.0%, including this Transaction.


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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