Facebook, New Sales Channel for Online Private Sales Clubs - Privalia

Online Private Sales clubs take a bet on Facebook

BARCELONA, Spain, July 1, 2010 - Companies are taking their presence on social networks ever more
seriously. Increasing brand visibility and virality among the broader public
and increasing sales is possible thanks to the cascading power of social
media. And in the land of social media, Facebook is the king.

In Europe, the increase in the number of companies that achieve their
sales and marketing objectives through social media is considerable. In
concrete terms, use of social media in Spain is above the European average,
with most surfers below the age of 40 and Facebook and Tuenti attracting the
largest number of users.

According to Forrester Research (2009), it is estimated that the online
apparel retail sector in Western Europe will see continuing growth of 10.04%
annually between 2008 and 2012 (CAGR), while in the USA it is expected that
growth will be 12.1% p.a.

Today Privalia, the private online sales club selling top brands, which
leads the market in Spain, Italy, Brazil and Mexico, is a point of reference
for e-commerce. The company tripled its sales in 2009 and surpassed 4 million
members in just 4 years of trading. Privalia sold more than 3 million items
in 2009 and since 2006 it has performed more than 3,000 sales campaigns for
the best 500 brands in the markets where it operates. This success has been
accompanied by a significant increase in staffing, with currently c.500
people across its offices in Spain, Italy, Brazil and Mexico. Global growth
predictions are in triple digits and it is expected that sales will exceed 7
million items in 2010.

Privalia has become the first company in the online private sales
industry to market its products online through Facebook. The initiative,
which opened to the public under the name Fan Shop, is the only one to exist-
on a global level- in the online private sales club business.

    Fan shop in figures:

    - Privalia Spain doubled its fan base on Facebook in the first 12 hours
      of Fan Shop's existence, reaching more than 40,000 fans

    - Currently, 6 weeks after the launch, Privalia's Facebook page has
      more than 115,000 Fans, which demonstrates the success of the
      initiative

    - Since it was launched the company has offered 12 sales events with an
      attractive value proposition for its fans: exclusive 2 hour pre-opening
      events.

    - Great sales potential: in the pre-sale for Munich, the brand which
      has sold the most in the shortest period of time, Privalia sold more
      than 1,000 items in the first 30 minutes.

    - Around 40% of Fan Shop buyers are buying for the first time and 60%
      are dedicated regular customers.

Fan Shop is a concept created exclusively for Privalia's Facebook page,
with which, unlike other applications, Privalia offers the possibility of
buying in advance (pre-opening campaigns) and access to exclusive events just
for fans.

''We're very proud to be the first in the sector to offer our Facebook
fans the most relevant content: irresistible and exclusive offers. When we
put together this initiative we were sure that the promotional intensity and
the sense of urgency which our sales model generates would be the key to a
successful launch, and the initial results show us that the combination of
e-commerce and social networks has a bright future- it encourages us to
continue betting on this channel. The opportunity was out there and Privalia
took advantage of it,'' says Lucas Carne, CEO and co-founder of Privalia.
Privalia estimates that more than 15% of the new members of its private sales
club will come through Facebook.

About Privalia

Privalia is a private club which organises short mono-brand
internet sales campaigns, exclusively of premium brands and offering
exceptional prices exclusively to its members. Born in Barcelona in 2006,
Privalia currently has more than 4 million customers around the world and is
a market leader in each of the markets where it operates, becoming a point of
reference for the sector. Privalia tripled its sales in 2009 and operates in
Spain, Italy, Brazil and Mexico, working as a multilocal business.

    Press Contact:
    Carolina Angel
    Carolina.angel@privalia.com
    +34-678987456

Press Contact: Carolina Angel, Carolina.angel at privalia.com, +34-678987456