Explain in a three paragraph memo how Luxottica Group S.p.A. chose to present its statement of financial position in compliance with IFRS and then explain two of its disclosures that would not be in compliance with U.S. GAAP.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008

In accordance with IFRS.

See notes to the consolidated financial statements.

F-5

(Amounts in thousands of Euro except share

data)

Note

reference

2010 2009 2008

Net sales

5,798,035 5,094,318 5,201,611

Cost of sales

(1,990,205) (1,762,591) (1,748,628)

Gross profit

3,807,831 3,331,727 3,452,983

Selling and Advertising

(2,367,979) (2,104,362) (2,144,989)

General and administrative

(727,693) (656,280) (576,355)

Total operating expenses

(3,095,672) (2,760,642) (2,721,344)

Income from operations

712,159 571,085 731,639

Other income/(expense)

Interest income 25

8,494 6,887 13,265

Interest expense 25

(106,987) (109,132) (123,002)

Othernet 25

(8,130) (4,056) (33,531)

Income before provision for

income taxes

605,535 464,784 588,371

Provision for income taxes 25

(218,219) (159,888) (190,499)

Net income from continuing operations

387,315 304,896 397,872

Discontinued operations

19,944

Net Income

407,258 304,896 397,872

Of which attributable to:

Luxottica Group stockholders

402,187 299,122 390,167

Non-controlling interests

5,072 5,774 7,705

NET INCOME

407,258 304,896 397,872

Weighted average number of shares outstanding:

Basic

458,711,441 457,270,491 456,563,502

Diluted

460,535,397 457,937,802 457,844,280

EPS:

Basicfrom continuing operations

0.83 0.65 0.85

Basicfrom discontinued operations

0.04 0.00 0.00

Basic

0.88 0.65 0.85

Dilutedfrom continuing operations

0.83 0.65 0.85

Dilutedfrom discontinued operations

0.04 0.00 0.00

Diluted

0.87 0.65 0.85