Stefanel S.p.A. : 14.11.2013 Stefanel S.p.A. appoves the consolidated results at 30 September 2013

STEFANEL S.p.A. APPROVES THE CONSOLIDATED RESULTS AT 30 SEPTEMBER 2013
THE THIRD QUARTER SHOWS A SIGNIFICANT IMPROVEMENT WITH EBITDA RETURNING TO BREAK-EVEN:
• Net sales stable at 45.7 million euro; sales like-for-like 2% better than at 30 June 2013
• EBITDA at break-even (euro -7.6 mn in the 3Q 2012)
• Net profit (loss) for the period -4.7 million euro (-12.9 mn in the 3Q 2012)
• Cash consumption reduced to 8.6 million euro (19.1 mn in the 3Q 2012)
OVERALL MARGINS HAVE IMPROVED IN THE FIRST NINE MONTHS:
• Net sales at 130 million euro (141.6 mn in 2012)
• Adjusted EBITDA** -8.2 million euro (-14 mn in 2012)
• Adjusted EBIT ** -14.7 million euro (-22.3 mn in 2012)
• Net profit (loss) for the period -20.7 million euro (-23.3 mn in 2012)

Ponte di Piave, 14 November 2013. The Board of Directors of Stefanel S.p.A. met today under the chairmanship of Giuseppe Stefanel and approved the Interim Report on Operations at 30 September

2013.
Giuseppe Stefanel, Chairman of Stefanel S.p.A., has made the following declaration: "The third- quarter figures show a number of encouraging signs and a reversal of the trend compared with the first half of the year, showing the effects of the reorganisation undertaken by the Group, despite the ongoing crisis in consumer spending which continues to be the main feature of 2013."

GROUP PERFORMANCE

The third quarter of 2013 posted a significant improvement in performance compared with the third quarter of 2012, achieving a significant reduction in fixed costs as a result of the actions previously taken by the Group in order to lower its break-even point, as against a slight increase in net revenues (achieved with about 40 fewer stores, however). Third-quarter EBITDA more or less breaks even, compared with a negative EBITDA of € 7.6 million in the third quarter of 2012. The net loss for the period has improved by Euro 8.3 million.
This trend is also reflected in a lower consumption of cash flows, which fell from 19.1 million euro in the third quarter of 2012 to 8.6 million euro in the third quarter of 2013.
The following is an abridged comparative income statement for the third quarter:

(in thousands of euro) 3Q 2013 % 3Q 2012 %

Net sales 45,681 100.0% 45,557 100.0% Gross operating profit 23,678 51.8% 23,221 51.0% EBITDA 18 0.0% (7,553) (16.6%) EBIT (2,117) (4.6%) (11,011) (24.2%)

Net profit (loss) for the period (4,664) (10.2%) (12,944) (28.4%)

Moving on to look at the trend for the first nine months of 2013, during the period the Group recorded consolidated net sales of € 130 million, versus € 141.6 million in the same period last year.

(in thousands of euro) 9 months 2013 9 months 2012 Change %

Stefanel business unit 99,753 109,556 (8.9%)

Interfashion business unit 30,252 31,998 (5.5%)Total net sales 130,005 141,554 (8.2%)

The directly operated monobrand stores (the so-called "Stefanel Shops") saw a 6% decrease in sales on a like-for-like basis, though they were 2 percentage points better than the YTD figure at 30
June 2013 (-8%). The rest of the decrease in revenues is due to the closure of stores that were not performing up to standard.
The sales by geographical area of the Stefanel business unit see Italy as its principal market with
43.6% of the total.

(in millions of euro) 9 months 2013 9 months 2012 Change %

Italy 43.6 51.2 (14.8%) Rest of Europe 52.3 54.7 (4.4%)

Rest of the world 3.9 3.7 5.4%Total net sales 99.8 109.6 (8.9%)

The geographical distribution of the Stefanel business unit's monobrand stores is as follows:

30.09.2013 30.09.2012

Stefanel Shops of which DOS Stefanel Shops of which DOS

Rest of the world 48 2 47 1

Total 405 168 445 188

During the first nine months of 2013, 38 new points of sale were opened and 78 were closed.
The Interfashion business unit had sales of Euro 30.3 million with a decrease of 5.5% compared with the first nine months of last year, mainly due to the impact of the crisis in the multi-brand distribution channel, above all in Italy.
Sales by geographical area of the Interfashion business unit have the following breakdown:

(in millions of euro) 9 months 2013 9 months 2012 Change %

Italy 8.2 9.4 (12.8%) Rest of Europe 20.1 20.5 (2.0%)

Rest of the world 2.0 2.1 (4.8%)Total net sales 30.3 32.0 (5.5%)

*****
The consolidated operating result (EBIT) was substantially in line with the same period last year. Note that this indicator is a significant improvement if adjusted for non-recurring income and charges and the writedowns made to fixed assets. In addition, the 2013 third quarter EBIT showed a significant improvement (Euro -2.1 million compared with Euro -11 million in the third quarter of
2012).

In particular, compared with a decrease in gross operating profit of Euro 8.3 million, there has been a
decrease in selling, general and administrative expenses of Euro 4.1 million and a decrease in the advertising and promotions costs of Euro 4.2 million.
Net financial expenses are in line with the same period last year (Euro 2.6 million).
The result of assets held for sale and discontinued operations at 30 September 2013 shows a positive balance of Euro 3.5 million, corresponding to the amount of the "conditional earn-out" on the sale of Hallhuber GmbH received during the period (see comments in the section "Significant events during the period").

THE GROUP'S FINANCIAL AND EQUITY STRUCTURE

The consolidated net financial debt1 (NFD) amounts to Euro 82.9 million (entirely reclassified as short-term, see "Agreements with the Financing Banks), compared with Euro 68 million at 31
December 2012.
The NFD of Stefanel S.p.A. amounts to Euro 82.8 million (entirely reclassified as short-term, see
"Agreements with the Financing Banks"), compared with Euro 72.4 million at 31 December 2012.

SIGNIFICANT EVENTS DURING THE PERIOD

Under an agreement signed with Doll Beteiligungs GmbH (Germany), in February 2013 Stefanel GmbH received Euro 3.5 million as the advance definitive forfeit amount for the "conditional earn- out" on the sale of Hallhuber GmbH, a clothing retailer, which took place in 2009.
On 31 May 2013, the Company and the Trade Unions signed an agreement to regulate the management of redundant employees at the head office in Ponte di Piave (TV) with the help of welfare supports. These are 67 employees who were already redundant in prior years (saved by a solidarity contract that involved a reduction in working hours, but no longer renewable) and an additional surplus of 26 employees, most of them belonging to the internal production department that the Company decided to close. The agreement with the Trade Unions provides for the use of State Redundancy Benefits for as long as possible (at least until 31 December 2013), followed by their dismissal and listing as employees who have been made redundant. These steps have been taken because of the need to reorganize the Company's head office functions in order to raise operational efficiency and effectiveness.

AGREEMENTS WITH THE FINANCING BANKS

On 23 June 2011, the Company had entered into a "New Agreement" with the financing banks (the
"Banks"). It will last until 31 December 2015 and provides for:
a) a moratorium on repayments of long-term loan principal until 2014, followed by a period of amortisation until 2017;
b) confirmation of the operating lines of credit until 31 December 2013;
c) verification of compliance with certain financial covenants on the basis of the half-year consolidated financial statements.
The covenants envisaged under the New Agreement were not met as of 30 June 2013. In addition to losing the benefit of the term on existing long-term loans, failure to comply with these parameters under the new agreement gives the Banks the right to revoke the lines of credit that expire on 31
December 2013.

1 Configuration of net financial indebtedness as required by CESR/05-054b Communication of February 2005, i.e. excluding financial fixed assets

In order to avoid the effects of failure to meet the covenants, in the first half of 2013, based on the
preliminary figures, the Company appointed a leading advisor to prepare an update of its business and financial plan, with a view to submitting a new debt restructuring proposal to the banks.
After a series of preliminary meetings, a meeting was held on 18 July to present a document entitled "2013-2017 Business Plan and Budget", during which management presented to the Banks the market conditions, the business situation, the actions already taken and still to be taken, the results expected from these actions and the consequent prospects. In the months that followed further meetings were held with the banks, which are continuing to examine the documentation submitted periodically by the Company. In this sense, it is worth pointing out that pending the completion of the new financial package, the Banks did not withdraw their support for the Group, effectively agreeing to maintain the lines of credit, as available and operational, even for periods subsequent to
31 December 2013. The Company is currently using these lines of credit.
The Company has also appointed an independent expert to certify the 2013-2017 Business Plan pursuant to art. 67 RD 267/42. This task has already been commenced.
With reference to the covenants that were not met at 30 June 2013, in the discussion of the new financial package with the Banks, the Company will ask for a waiver.
The Directors are of the opinion that the new financial restructuring agreement will probably be substantially reached by the end of 2013, considering the bureaucratic and administrative time needed in such matters. Therefore, for the sole purpose of complying with the accounting standards, in this interim report at 30 September 2013, the Directors have also classified as short-term the current portions of long-term loans, even though they expect to be able to maintain the ability to pay them in the longer term as part of the new debt restructuring agreement.

SUBSEQUENT EVENTS

With the Parent Company making a loss of Euro 18,326 thousand at 30 June 2013, the Company's share capital has decreased by more than a third. Consequently, on 22 October 2013 the Extraordinary General Meeting adopted the resolutions foreseen by art. 2446 of the Civil Code, taking steps to cover the loss for the period as well as the losses carried forward of Euro 19,859 thousand through: a) utilization of reserves for Euro 9,998 thousand; b) reduction of the share capital of Euro 28,187 thousand.
Except as reported in the previous paragraph, no particularly significant events have taken place after 30 September 2013.

OTHER INFORMATION

At 30 September 2013 the Group had renegotiated the due dates of overdue trade payables of Euro
11.8 million, extending them to later dates without any charge for penalties or default interest. The Group has not suffered particularly in terms of payment reminders, injunctions or suspended supplies.
There are no past due liabilities for taxes, social contributions or payroll.
As regards related-party transactions, including those between Group companies, they could not be classified as abnormal or unusual as they form part of their normal course of business. Such transactions are settled on arm's-length terms, having regard for the characteristics of the goods and services provided. The principal economic and financial transactions between Group companies and related parties (excluding intercompany transactions, which have already been eliminated on consolidation) are summarised below (in thousands of Euro).

30.09.2013 31.12.2012

Purchase of intangible assets from related parties 5 276

Purchase of commercial equipment from related companies 855 2,319

Due from related parties for supplies 963 707

Accounts receivable from related parties for disposal of stores 7,425 9,400

Other financial receivables from related parties 27 - Due to related parties for supplies (1,239) (1,567)

Nine months

2013

Nine months

2012

Income from recharges to related parties 61 40

Costs recharged by related parties (2,260) (1,375) Gain on sale of fixed assets 618 4,061

Other financial income from related financial parties 27 27

The interim report on operations at 30 September 2013 provides detailed information on the impact that related-party transactions or positions have on the Group's balance sheet, financial position and income statement.
*****
The interim report on operations at 30 September 2013 is available to the general public at the Company's registered office, on the Company's website www.stefanel.com (in the Investors/Financial statements section: http://www.stefanel.com/media/assets/2/4/2463resocontogestioneal300913.pdf and on the website of Borsa Italiana S.p.A. www.borsaitaliana.it.

DECLARATION BY THE EXECUTIVE IN CHARGE OF PREPARING CORPORATE ACCOUNTING DOCUMENTS

Federico Girotto, the executive in charge of preparing corporate accounting documents, declares, pursuant to article 154-bis para. 2 of the CFA, that the financial information contained in this press release agrees with the documentary records, books of account and accounting entries.
*****

THE STEFANEL GROUP

The Stefanel Group, which operates through the Stefanel brand as one of the historical brand names of Italian fashion, is currently present nationally and internationally in the apparel sector through two business units: Stefanel and Interfashion. The Stefanel business unit takes care of the production and international distribution - mainly to monobrand stores - of collections of Stefanel brand women's apparel and accessories, while the Interfashion business unit designs, takes care of production and distributes at international level items of female apparel under the HIGH brand (owned by the Group) as well as I'm Isola Marras (under licence).

DISCLAIMER

This document contains forward-looking statements with forecasts relating to future events and the operating, economic and financial results of the Stefanel Group. By their nature, such forecasts are subject to an element of risk and uncertainty, since they depend on the outcome of future events and developments. Actual results may differ significantly from those announced due to a multitude of factors.

ATTACHMENTS

• Consolidated income statement

• Reclassified consolidated balance sheet

• Reclassified consolidated cash flow statement

Note: the numbers relating to 2013 and 2012 have been prepared in accordance with IAS/IFRS. The numbers relating to 2012 have been audited, while those relating to the first nine months of 2013 and 2012 have not been subject to audit. The balance sheet and cash flow statement have been reclassified in accordance with a format that is normally used by management and by investors to evaluate the results of the Group. These reclassified statements do not comply with the standards of

presentation requested by IFRS and should not be considered a substitute for them. However, since they disclose the same content, they are easily reconcilable to IFRS statements.

***** STEFANEL S.p.A.

Investors/analysts: Stefanel S.p.A. Federico Girotto Ph. +39 0422 8191

investor@gruppo.stefanel.it

www.stefanel.com

Media Relations:

Ad Hoc Communication Advisors

Ph. +39 02/7606741

Sara Balzarotti Mob. +39 335/1415584 sara.balzarotti@ahca.it

Valentina Zanotto Mob. +39 3351415575 valentina.zanotto@ahca.it

CONSOLIDATED INCOME STATEMENT

(in thousands of euro) 9 months %

2013

9 months

2012 % 2012 %

Revenues 130,005 100.0% 141,554 100.0% 186,605 100.0% Cost of sales (61,460) (47.3%) (64,746) (45.7%) (84,722) (45.4%) Gross operating profit 68,545 52.7% 76,808 54.3% 101,883 54.6% Selling, general and administrative expenses (74,858) (57.6%) (78,921) (55.8%) (93,972) (50.4%)

- of which non-recurring income (charges) (2,542) (2.0%) 3,209 2.3% 12,404 6.6%

Advertising and promotion (4,426) (3.4%) (8,673) (6.1%) (11,116) (6.0%) EBITDA* (10,739) (8.3%) (10,786) (7.6%) (3,205) (1.7%) Adjusted EBITDA** (8,197) (6.3%) (13,995) (9.9%) (15,609) (8.4%) Depreciation and amortisation (6,544) (5.0%) (8,340) (5.9%) (10,020) (5.4%) Impairment of intangible and tangible assets (2,269) (1.8%) (474) (0.3%) (3,434) (1.8%) EBIT* (19,552) (15.0%) (19,600) (13.9%) (16,659) (8.9%) Adjusted EBIT ** (14,741) (11.3%) (22,335) (15.8%) (25,629) (13.7%) Financial income (expense) (2,590) (2.0%) (2,611) (1.8%) (3,587) (1.9%) Income (expenses) from investments (319) (0.3%) (43) (0.0%) (123) (0.1%) Profit (loss) before tax (22,461) (17.3%) (22,254) (15.7%) (20,369) (10.9%) Income taxes for the period (1,712) (1.3%) (1,021) (0.7%) (414) (0.2%) Result of ongoing operations (24,173) (18.6%) (23,275) (16.4%) (20,783) (11.1%)

Result of discontinued operations 3,500 2.7% - 0.0% 700 0.4%

Net profit (loss) (20,673) (15.9%) (23,275) (16.4%) (20,083) (10.8%)Attributable to:

- Shareholders of the Parent Company (20,778) (16.0%) (23,404) (16.5%) (20,205) (10.8%)

- Non controlling interests 105 0.1% 129 0.1% 122 0.1%

* EBITDA consists of operating income plus amortisation, depreciation and writedowns of fixed assets, while EBIT consists of operating income

** Adjusted EBITDA does not include non-recurring income (charges), whereas adjusted EBIT does not include non-recurring income (charges) and write-downs of non-current assets.

RECLASSIFIED CONSOLIDATED BALANCE SHEET

(in thousands of euro)

30.09.201

3

31.12.201

2

30.09.201

2

Intangible assets 32,817 35,130 38,896

Property, plant and equipment 27,953 32,796 35,555

Other non-current assets, net 9,825 15,277 14,561

Employee termination indemnities, provision for risks and charges (non-

current portion) (7,259) (7,109) (7,402) Non-current assets 63,336 76,094 81,610

Operating net working capital 31,698 24,497 32,858

Other net current assets (liabilities) 9,844 11,653 3,019

Invested capital 104,878 112,244 117,487

Shareholders' equity 22,202 44,309 41,212

Net financial position 82,676 67,935 76,275

Invested capital 104,878 112,244 117,487

RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT

(in thousands of euro)

Net profit (loss)

Depreciation, amortisation and writedowns of non- current assets

Result of assets held for sale and discontinued

operations

Gains from the sale of assets

Other adjustments 1,160 640 (1,366)

(15,356) (18,192) (22,203)Change in operating net working capital (6,223) (21,479) (15,003) Change in other current assets/liabilities 106 (828) 1,411

Cash flow from operating activities (21,473) (40,499) (35,795)

International S.A. 3,000 3,000 3,000

Free cash flow (13,231) (39,534) (31,271) Other changes in shareholders' equity (1,510) (955) (878)

Change in net financial position (14,741) (40,489) (32,149)

distributed by