. Recurring operating income up 11.3%

. Sharp increase in Luxury Goods results

. €70 million improvement in free cash flow from operations*

On September 7, 2005, PPR's Board of Directors met to examine the Group's financial statements for the six months ended June 30, 2005, certified by the Statutory Auditors.

François-Henri Pinault, Chairman and Chief Executive Officer of PPR, stated:
'PPR's strong results underscore the relevance of our strategy and business development model. Thanks to its positioning on two activities - the rapidly growing global Luxury Goods universe, and stable, mature Retail markets - the Group enjoys a higher profitability profile than that of the markets in which it participates.  Luxury Goods posted excellent first-half results, notably at Gucci and Bottega Veneta, with double-digit growth rates, thereby outperforming its main competitors over this period. In Retail, strong performance at Redcats and Fnac offset Conforama's lower results in a challenging European environment. The PPR Group is particularly well positioned to further improve its performance, as the positive trends of July and August clearly indicate.'

(1) After adjustment for impact of transition to IFRS and change in closing date of Gucci Group's financial year.
* Net cash flow from operating activities +/- Net operating investments.

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» Download the release (.pdf - 70 Ko)
» Download the financial statements (.pdf - 110 Ko)

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PRESENTATION

The presentation of the 2005 half-year results to the financial community will be broadcast live from 8.30 am Paris time / 7:30 am London time.

Dial-in

French version: +33 (0)1 72 28 01 30

English version: +44 (0) 161 601 8912

Replay dial-in

French version: +33 (0) 1 72 28 01 39
Replay passcode: 167502#

English version:
UK: +44 (0) 207 075 3214 
US: +1 866 828 2261
Replay passcode: 167479#

Slides (PDF) and an audiocast (Real or Windows Media Player) will be available from 8.30 am on www.pprfinance.com. A recorded version will be available later in the day.

CONTACTS

Media:  
Lorie Lichtlen  
+33 (0)1 45 64 65 06

Analysts/Investors: 
Alexandre de Brettes  
+33 (0)1 45 64 61 49

Media website: www.pprlive.com
Analysts/investors website: www.pprfinance.com