Fila Holding S.p.A. and Ferrari S.p.A. announced yesterday that they have entered a three year worldwide licensing agreement whereby Fila will develop and sell sportswear apparel products bearing the Ferrari brand name as well as athletic shoes.

This broad partnership entitles Fila to become an official supplier of the Ferrari/Marlboro team, providing on-track and off-track uniforms to the F1 team, as well as of the Ferrari Challenge Gt races in the USA, Europe and Japan.

This agreement will generate additional business of around 75 - 100m Euros throughout the 2002 - 2004 license.

Under this licensing contract, Fila will develop two different collections: the "Ferrari Collection,'' a high quality and exclusive line inspired by the story and technology of the car maker brand, and the "Tifosi Collection". On top of this Fila will produce the Formula One Team replica and a dedicated kids collection.

The contract has a broad scope covering the 2002-2004 period, with an option for a three year renewal and plans to generate synergies at the retail, co-marketing and Internet levels. On the retail side, Fila will create an area fully dedicated to Ferrari licensed products in all its stores around the world.

Mr Michele Scannavini, CEO of Fila, said: "We are particularly pleased with this partnership that links Fila to Ferrari, the most prestigious and admired Italian brand around the world. We expect from this initiative a strong pay-back of the investment both in terms of brand image and additional revenues."