Etam Développement: Sales of €1,134.5 million to 31 December 2010

Regulatory News:

(1) like for like and at constant exchange rates
(2) including export sales
(3) including Undiz

I. BUSINESS TRENDS

In the fourth quarter of 2010, the Etam Group (Paris:TAM) posted sales of €308.9 million, including a positive currency impact of €13.0 million mainly related to the appreciation of the yuan against the euro. Sales grew by +7.7% compared with the fourth quarter of 2009. Like-for-like and at constant exchange rates, sales decreased by 3.0%.

Over the year, the Etam Group generated sales of €1,134.5 million, including a positive currency impact of €21.2 million mainly related to the appreciation of the yuan against the euro. Sales rose by 11.2% compared with 2009. Like-for-like and at constant exchange rates, sales grew by 2.6%.

1. Europe

In the fourth quarter of 2010, sales came to €198.2 million, down -1.0% and -4.8% on a like-for-like basis and at constant exchange rates.

Over the year, sales were up 1.2% to €752.0 million, and down -1.0% on a like-for-like basis and at constant exchange rates.

The Group's business dipped in the fourth quarter of 2010. In France, sales were hit by a drop in footfall at stores, related to the strikes that took place in October and the bad weather in December, the month which traditionally represents more than 40% of the quarter sales.

Over the year, the Etam brand posted a stable business performance on a like-for-like basis, whereas ongoing work to reposition the 1.2.3 brand and revamp its collections has yet to have an impact on sales.

2. China

In the fourth quarter of 2010, sales rose by 27.5% to €110.7 million, including a positive currency impact of €13.0 million. Like-for-like and at constant exchange rates, net sales increased by 2.4%, on the basis of a strong growth in the fourth quarter of 2008 and in the fourth quarter of 2009.

Over the year, sales rose by 38.1% to €382.5 million, including a positive currency impact of €21.0 million. Like-for-like and at constant exchange rates, sales grew by 15.9%.

II. NETWORK DEVELOPMENT

At 31 December 2010, the Etam Group had 4,200 sales outlets, including 988 in Europe, 3,044 in China and 168 operated by international franchises.

• In Europe, the Group has been developing its store base for its lingerie activities
• In China, the Group opened 373 stores on a net basis since the first of January 2010, of which 150 during the fourth quarter.

III. POST-CLOSING EVENTS

The shift of January sales in France, which began on the 12th this year versus the 6th in 2010, will have a negative impact on the monthly turnover.

The Etam Group is an international retailer of women’s ready-to-wear clothing, lingerie and accessories with 4,200 sales outlets at 31 December 2010.

Next release: 2010 Annual Results & 2011 Q1 Net sales on 13 April 2011 after the market closes in Paris

Information for analysts and investors: www.etamdeveloppement.fr / Tel.: 01 55 90 72 79
Etam Développement: ISIN code: FR0000035743 / Reuters: TAM.PA / Bloomberg: TAM FP