LVMH MOëT HENNESSY LOUIS VUITTON and the DE BEERS GROUP to establish a company to unlock the value of the DE BEERS brand

Tuesday, January 16, 2001 - The De Beers Group, the world's premier diamond group, and LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, have agreed to establish an independently managed and operated company to develop the global consumer brand potential of the De Beers name.

*The De Beers Group will transfer to the independent company the world-wide rights to use the De Beers brand for luxury goods in consumer markets.
*The new company's immediate focus will be on premium diamond jewellery and it is envisaged that it will become a key part of the LVMH luxury goods portfolio.
*The investment is expected to create long-term value for both Groups and will become a catalyst for brand competition in the sale of diamond jewellery. The two groups have agreed to invest an equal contribution of capital to establish the new company in which they will share equal ownership.
*The new company will benefit from LVMH's extensive experience in both developing luxury brands and rolling out premium retail concepts.
*It is intended that Myron Ullman, Group Managing Director of LVMH, will be appointed Chairman of the Board of the new independent company.
*The De Beers Group will have no day-to-day operational involvement in the running of the company.
*A technical services agreement has been developed for a one-off transfer of technical diamond expertise from the De Beers Group to the independent company.
*The new company will work closely with leading polished diamond suppliers world-wide to source diamonds to the exacting standards demanded by the brand. It will not buy rough diamonds or source polished diamonds from the De Beers Group.
*The new entity will bring a new customer into the market creating a new source of demand for both Sightholders1 and non-Sightholders alike.
*The core business of the De Beers Group remains the mining and marketing of rough diamonds.

Further information and a selection of images relating to this announcement can be obtained by visiting:
http://lvmhdebeers.netcoms.com