MUL Mulberry Group Plc

RNS No 3411f
MULBERRY GROUP PLC
2 August 1999


MULBERRY GROUP PLC ("MULBERRY") SIGNS MAJOR PARTNERSHIP
DEAL WITH JAPANESE MANUFACTURING GIANT TORAY


Mulberry, the market leading British luxury goods brand,
has today signed a landmark partnership agreement with
Toray Industries, the world's largest textile
manufacturer, to develop the Mulberry brand in Japan.

Toray forecasts retail sales in Japan of licensed and
imported Mulberry product totalling just under #50
million over the first 5 years.

Toray has been granted a master license to manufacture
and distribute 23 different categories of Mulberry
product throughout Japan and an exclusive import license
for products manufactured by Mulberry.

Toray has also committed, as part of the agreement, to
making an immediate, advance contribution towards
marketing and promotion of the Mulberry brand in the
Japanese market.

The final part of the agreement involves Toray making a
further symbolic investment in Mulberry, as a sign of its
on-going commitment to the agreement.

Mulberry began the reorganisation of its Japanese
operation last year, having taken over control of its
Tokyo stores following the collapse of the Company's
local partner.  Mulberry, maintaining faith in the
Japanese market, doubled the size of its Tokyo "flagship"
store to include its new home interiors collection.  As a
result, the Japanese flagship store LFL sales have
increased by 58% in the first nine months, despite the
worst recession in Japan since the war, which saw retail
sales fall 11% in the clothing industry.

Under the terms of its agreement with Toray, Mulberry
will continue to own and operate its "flagship" Tokyo
store and will introduce an aggressive marketing
campaign.

Commenting on the agreement, Mulberry Chairman Roger Saul
said:

"We are delighted to announce this agreement with Toray,
one of the most powerful and innovative companies in
Japan.

I believe that today's agreement with Toray vindicates
our strategy in this key market and, along with the
strong improvements in sales, represents another
significant step in our strategy to develop the Mulberry
Brand.

The reaction to the Autumn/Winter collection in Japan has
been extremely strong.  I believe that it more than
illustrates Mulberry's growing understanding of the
Japanese consumer.

I am convinced that there is a real future for British
lifestyle brands in a number of key, geographic markets."

Mr. Tsuyoshi Azuma, Toray's Director of Fashion said:

"Mulberry is one of the leading European luxury brands
and already has a strong and loyal customer base in
Japan.  We are confident that the combination of the
Mulberry brand and Toray's manufacturing and distribution
skills will create one of the leading luxury brands in
the Japanese market."


For further information:
Roger Saul          Chairman and Designer,
                    Mulberry Group PLC            01749 340532
Alex Mackey         GCI Focus                     0171 600 1392
                                                  07808 581 674 (mobile)

END

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