Brocard Parfums GmbH Stop Acquisition Of L'Escale

Berlin, Germany - December 06, 2002 -- Brocard Parfums GmbH formally confirmed that it has stopped all efforts to takeover L'Escale, the East European perfumery retail business arm of Swiss-based Temtrade SA, and now is considering to take legal action against Temtrade.

David Tetruashvili, CEO and founder of Brocard Parfums, denoted "the management board of Brocard Group will come to a decision after thorough consideration. In any event, Brocard is no longer trying to buy L'Escale."

He added that Brocard considers the purchase agreement between itself and Temtrade SA as having materialized at least in part, since an agreement in principle has been reached and set forth in writing between the parties in respect to the subject-matter of the contract and to the purchase price. "We consider the sales negotiations are being carried on by Temtrade with other interested buyers a material breech of the agree-ment," Tetruashvili said.

In fact, Temtrade was unable to provide Brocard with any reliable financial statements (Annual Reports, P&L etc.) of its Russian and Ukrainian subsidiaries in question.

"We have been overtaken by events which, in this unusual case, appear beneficial. It seems to me that we should be happy with this and look on how it works out in our favor." said Alex J. Shapiro, acting CFO of Brocard Parfums and Managing Partner at U.S.-based Quo Vadis International Group alluding to the unexpected closing of all L'Escale shops in Russia and Ukraine.