The worst seems to be over for Marcolin. The group's total sales rose by 14 percent in the 1st quarter ended March 31, with increases of 22 percent in Italy and 14 percent in the rest of Europe. In the USA, sales rose by 10 percent in euros but jumped by 28 percent in dollars, in spite of the elimination of certain lines, confirming expectations that Marcolin USA will be able to reach positive gross operating income (Ebitda) in 2004. Contributing to the international growth, the high-end Dolce & Gabbana and Roberto Cavalli licensed collections raised their sales by more than 25 percent in the latest quarter. Meanwhile, Marcolin has extended for one additional year its licensing contract for Replay Eyes, which was due to expire at the end of 2006. The contract for Replay, which was first signed in mid-2002, now calls for total sales of €35 million over its entire duration.