AS Silvano Fashion Group Stock Exchange Release 01.10.2007 AS Silvano Fashion Group (“SFG” or the “Group”) has acquired 100% of all shares in UAB “Linret LT”, the operator of a chain of lingerie retail outlets. UAB “Linret LT” (formerly - PC “E. Aluzo”) operates 16 lingerie retail outlets in Lithuania (4 in Vilnius, 3 in Klaipeda, 4 in Siauliai, 3 in Kaunas , 1 in Mazeikiai and 1 in Utena) with the total area of 877 square meters. Shops are operated primarily under the name of “Amadea Line”. The acquisition significantly boosts the presence of SFG in Lithuania, where the Group has so far operated 3 retail outlets. The newly acquired retail outlets already have strong ties to the Group, with over 40% of revenue generated from sales of “Lauma Lingerie” branded products. Following the acquisition, the newly acquired outlets will also commence sales of “Milavitsa” branded lingerie. Rebranding of the acquired shops will be considered. The newly acquired entity will be managed by Mr. Linvydas Pilkauskas, who is also responsible for the roll-out of the “PTA” and “Oblicie” retail chains in Lithuania. Ms. Violeta Aluziene will be engaged as sales and marketing manager of the chain. The acquired business generated revenues of €1.4 million (EEK 21.7 million) in 2006. During the first half of 2007 revenues reached €751 thousand (EEK 11.4 million). The acquisition is not a transaction with a related party and the members of SFG's management and supervisory boards do not derive any personal benefit from the transaction. Following the acquisition, SFG operates a total of 94 retail outlets in 7 countries (including 8 in Estonia, 6 in Latvia, 19 in Lithuania, 20 in Belarus, 1 in Ukraine, 8 in Poland and 32 in Russia). SFG intends to continue the expansion of its retail network through the opening of new shops and further acquisitions. ______________________________ Sergei Kusonski CEO AS Silvano Fashion Group Tel +372 6 710 700