MILAN, Nov 4, 2005/ FW/ --- In a coup of a deal for A/X Armani Exchange, Giorgio Armani just raised projected revenues of his urban label to 85%, from the projected US$ 3000 million for 2005 to US$ 550 million at the end of 2008, according to a statement released yesterday by the company.

The Armani Group, whose latest financial filing as of Oct 4, 2005 reported consolidated net revenues of $697 million worldwide, a rise of 8% at current exchange rates has had a windfall first half as the company’s brands to grow for the first half of the fiscal year.

Worldwide sales through the Group’s direct controlled stores have grown by + 13% in the six month period, with Greater China showing the greatest increase at + 38%.

Considered one of the leading fashion and luxury goods group in the world, the Armani Group has 4,800 direct employees and 13 factories. It has 339 company-owned stores in 39 countries, 87 of which are A/X Armani Exchange stores.

Currently, 1,767 or approximately 36% of the Group’s total employees work directly for A/X Armani Exchange.

With the newly signed agreement between Giorgio Armani S.p.A and Como Holdings headed by Singaporean luxury entrepreneur Christina Ong, a joint venture, which will be called Presidio Holdings, will control A/X Armani Exchange. Giorgio Armani S.p.A will have 25% stake, while Como Holdings will have the controlling 75%, with the option that Armani can increase his holdings up to 50% by November 2008.

The deal, though a little surprising, was not unexpected. A/X Armani Exchange which was launched in 1991, had been licensed to Como Holdings to manufacture and distribute A/X Armani Exchange in the “United States, Canada, Mexico, Central and South America and the Asia / Pacific region except Japan” since 1994.

With this latest union, an aggressive marketing stance had been planned for the brand, according to the latest statement. Coupled with the increase of the numbers of A/X Armani Exchange stores in existing and new markets, Presidio Holdings also plan to develop new product lines for the label that will include accessories, fragrance, eyewear and watches.

Part of Presidio Holding’s business plan for A/X Armani Exchange is also to expand its web presence by building up its e-commerce site.