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Inter Parfums and Burberry Sign License

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By: TOM BRANNA

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Inter Parfums Inc.’s Paris-based subsidiary, Inter Parfums S.A., and Burberry have entered into along-term fragrance license confirming the highly successful long-term partnership between thecompanies, executives said. The agreement has a 12.5-year term with an option to extend thelicense by an additional five years subject to mutual agreement. The new agreement replaces theexisting license.

The new Burberry fragrance license provides for an increase in the royalty rate effective as of July1, 2004 and additional resources to be devoted to marketing beginning in 2005. Inter Parfums isplanning for these changes and mitigating the associated expenses by establishing a dedicatedBurberry Fragrances operating unit. The company expects this new model to increase selling pricesand modify cost-sharing with suppliers and distributors. Future formation of joint ventures orcompany-owned subsidiaries within key markets is also expected.

“We have enjoyed an excellent working relationship with the senior management at Burberry andare very happy that our partnership, which began in 1993, will continue well into the future,”commented Jean Madar, chairman and chief executive officer of Inter Parfums. “The new licenseincludes rights for other related skin care and personal care categories which bring additionalopportunities to our company.”

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