In response to the recent media reports about Mr. Lu Qiang's purchase of 13%Prada group shares in the past two years, the Prada group hereby solemnly declares that the Department has no basis for false reporting.

94.89% of the Prada group shares are owned by the Prada family and the husband of Ms. MiucciaPrada, PatrizioBertelli, and another 5.11% of the shares are held by BancaIntesaSanPaolo bank.

Event background

In April 2009, the bad news about PRADA began to appear. The earliest saying was that PRADA expanded the number of global stores in order to enhance competitiveness. However, the 2008 IPO financing plan had to be postponed due to the financial crisis.

In the summer of 2009, when PRADA had to repeatedly come up with a rumor on the news that it was too heavily indebted and had to sell shares, Lu Qiang's roundabout attack on the PRADA Empire had begun.

China's Economic Observer reported the news of Lu Qiang's takeover.

Aileen, a fox City spokeswoman, told Agence France-Presse reporters that "we have no plans to make an open takeover.

But somehow a media got the news and reported it.

Then the price becomes very high, so we are considering giving up this idea.

She confirmed that Lu Qiang had interviewed the economic observer, but declined to comment on the report.

The newspaper said Lu Qiang had indirectly acquired 13 percentage points of Prada shares in the past two years and plans to increase shareholdings to 20% to become its largest shareholder.

Lu Qiang has bought a value of 20 million euros through an unidentified Italy consulting company, the newspaper said.

But Prada has raised the price since then.

The report quoted Lu Qiang as saying, "(Prada thinks) to hand over the company to China Management Association will damage the quality and style of the brand".

According to the report, Lu Qiang's acquisition team had planned to invest Prada4.5 billion euros by buying shares of the Italy fashion company's creditors.

But the cost of the takeover has risen to between 600 million and 700 million euros, the newspaper said.

Lu Qiang said that if he could not buy more shares on Monday, he would sell his existing Prada shares, and said, "I will sell all the shares held at present."

About Prada group

Prada group is one of the world's leading luxury goods groups. It owns Prada, MiuMiu, Church 's and CarShoe brand, specializing in the production and sale of high quality handbags, leather goods, footwear, clothing and accessories.

Prada group also operates glasses, perfume and mobile phones in the form of franchise.

The Prada group has 280 direct outlets in 76 countries, and sells products through selected department stores, multi brand boutiques and licensed dealers.