Folli Follie S.A. ( the “Company”) announces today the launch of an offering, by its wholly owned subsidiary FF Group Finance Luxembourg SA, a public limited liability company (société anonyme) incorporated under the laws of the Grand Duchy of Luxembourg, having its registered office at 54-56, boulevard Napoléon, L-2210 Luxembourg and in the process of being registered with the Luxembourg trade and companies register (Registre de Commerce et des Sociétés Luxembourg) (the “Issuer”), of EUR 249.5 million of guaranteed exchangeable notes (the “Notes”) due 2019 (the “Offering”). The Notes will be exchangeable into convertible bonds (the “Bonds”) to be issued by the Company, replicating the economics of the Notes, which will automatically be converted into ordinary shares of the Company (the “Shares”), subject to the Company’s cash settlement option described below. The Bonds are issued in accordance with the specific resolution adopted at the Annual Shareholders Meeting of the Company of 20 June 2014. The majority of the proceeds of the Offering will be used to reimburse existing debt at the Company level, which will lead to a significant reduction of the financing cost for the Company, as well as the lengthening of its funding maturity profile. The Company intends to use the remainder of the net proceeds for general corporate purposes with the objective of funding the rapid expansion of the group and potential share buybacks. The Notes will be issued at 100% of their principal amount in denominations of EUR 100,000, will carry a 5 year maturity and are expected to bear interest at a rate of between 1.00% – 1.75% per annum payable semi-annually in arrear. The conversion price is expected to be set at a premium of 30% – 35% above the volume weighted average price of the Shares on the Athens Exchange between launch and pricing of the Offering. The conversion price will be subject to customary adjustments pursuant to the terms and conditions of the Notes. The Issuer will have the option to redeem all of the Notes (i) on or after 24th July 2017 at their principal amount together with accrued interest, if the aggregate value of the Shares Folli Follie Group - 23rd km Athens-Lamia Highway, 145 65, Athens, Greece 2 underlying the Notes exceeds 130% of the principal amount of the Notes over a specified period or (ii) at any time, if 15% or less of the principal amount of Notes originally issued remain outstanding. Noteholders may elect to exchange their Notes for Shares subject to the Company’s right to elect to deliver an equivalent amount in cash for all or part of the Shares (in accordance with the terms and conditions of the Notes). The number of Shares initially underlying the Notes is expected to represent up to 10% of the Company’s total share capital. Deutsche Bank and Morgan Stanley are acting as Joint Bookrunners on the Offering. The institutional bookbuilding period for the Offering will commence immediately and is expected to end as soon as practicable hereafter and in any event no later than 24 June 2014. The Joint Bookrunners of the Offering reserve the right to end the bookbuilding period at any time. The Offering is being made to institutional investors only, outside the United States, Australia, Canada and Japan, in offshore transactions (in reliance on Regulation S). The Company intends to apply for the admission of the Notes to trading on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange within 90 days following the settlement date. Final terms of the Offering are expected to be announced on 24 June 2014 in a separate press release.