- Statement of the Board of Mosaic Fashions in connection with the take-over bid from Tessera Holding ehf.

The Board of Mosaic Fashions hf, which excludes Gunnar Sigurosson, Derek
Lovelock and Richard Glanville for purposes of this transaction, has considered
the terms of the offer by Tessera Holding ehf., dated 4 July 2007, for the
issued share capital of Mosaic Fashions hf.  As the Board was not legally
constituted, cf. paragraph 7 of Article 41 of Act No. 33/2003 on Security
Transactions, the Board asked MP Investment Bank to provide the board of Mosaic
Fashions hf with a fairness opinion of the takeover bid. 

Following a review of the offer documents and the fairness opinion from MP
Investment Bank, the Board believes that the terms of the offer are fair and
reasonable to Mosaic Fashions' shareholders and are in the best interests of
the company. According to article 41 of the Icelandic Securities Transaction
Act no. 33/2003, the Board has also taken into account other factors included
in the offer including the way in which the bid will be financed and Tessera
Holding's future plans for Mosaic Fashions, details of which have been set out
in the published offer. The Board refers shareholders to the fairness opinion
of MP Investment Bank which is attached herewith. 
 
Accordingly, the board of Mosaic Fashions hf unanimously recommends that Mosaic
Fashions' shareholders accept the offer from Tessera Holding ehf. 
 
The board has not received the opinion of an employee representative regarding
the bid. 


For further information, please contact Jessica Wilks, Investor Relations
Manager on +44 207 452 1122. 


Information on Mosaic Fashions hf is available on the company website at 
www.mosaic-fashions.is or www.mosaic-fashions.co.uk


Mosaic Fashions hf is the parent company of eight successful design led fashion
brands; Coast, Karen Millen, Oasis, Odille, Principles, Shoe Studio, Warehouse
and Whistles. It operates 1,892 stores and concessions, mainly in the UK and
Ireland, but also in the rest of Europe and the USA. It has 184 franchise
stores in 31 countries worldwide, and 52 department store concessions in China
through a joint venture. The group employs over 13,000 employees. The company
is listed on OMX.