Announcement of Agreement with New North America L

15 September 2010

FRENCH CONNECTION GROUP PLC

Announcement of Agreement with New North America Licence Partner

In line with the strategy of expanding its business through Licensing agreements, French Connection Group plc ("the Group") is pleased to announce that it has agreed a licence for the use of the "UK Style by French Connection" name on a contemporary fashion clothing and accessories line at accessible prices for the North American fashion market. The licence has been granted to LF USA, a subsidiary of Hong Kong-based multinational Li & Fung Limited, the global consumer goods exporter, and the product will be sold exclusively through Sears department stores, a leading U.S. retailer. The line will be designed and produced by LF USA's Regatta division under the guidance and control of French Connection and will not cross over with any of the Group's existing brands in terms of design or pricing. LF USA is a subsidiary of Li & Fung Limited, the Hong Kong headquartered multi-national export group and is recognized as the world's leader in consumer goods design, development and sourcing. From over 80 offices in the United States, Europe, Africa and Asia, the Group manages the supply chain for retailers and brands worldwide and sources from more than 40 economies.

The initial term of the licence extends to July 2014 and includes minimum net royalties receivable by the Group amounting to US$10 million over that period. The agreement includes provision for renewal of the licence for a further three periods of three years each subject to the achievement of specific performance criteria. The first range of products, designed and produced by LF USA's Regatta division, will be launched for the Spring 2011 season.

Commenting on this announcement, Stephen Marks, Chairman of French Connection said:

"We are excited with this new opportunity and delighted to be working with two world class companies on this project. This new licence will enable us to extend our reach into a new segment of the market through the established channel of Sears department stores. We expect this to provide a significant income stream for the Group over the initial period of the licence and further into the future."

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