Share fall takes shine off Costarella's cosmetics alliance

Shares in North Perth-based fashion design company Costarella Design Ltd fell 11.7 per cent today after the company entered into a strategic alliance with Singapore-based cosmetics company I Nuovi Ltd.

The full text of a company announcement is pasted below

Costarella Design Ltd wished to announce that it has entered into a strategic alliance with leading professional cosmetic group I Nuovi Cosmetics (S) Pte Ltd to develop a range of skincare, body-care, personal-care and the Aurelio Costarella signature scent. The union brings together the creative talents of the Costarella Design team and the technical industry expertise of I Nuovi to develop and supply a range of highest quality beauty products exclusively for the Aurelio Costarella Brand portfolio.

The development is yet another milestone in the company's roadmap to build a portfolio of high-end luxury products under the Aurelio Costarella brand. Creative and Managing Director of Costarella Design Ltd, Aurelio Costarella, stated that an extensive global search for a strategic partner ended with the selection of I Nuovi. I Nuovi's deep rooted philosophy and brand value distinguished itself from others.

"We were impressed with I Nuovi's intensive research and development programs based in leading cosmetics laboratories in Switzerland, Japan, Italy and France using advance technology, raw materials and innovative manufacturing techniques," says Aurelio Costarella. Wayne Loh, founder and executive director of I Nuovi added that he is proud to work with the creative talent of Aurelio Costarella in formulating a range of high quality products for the global market.

The products are expected to be launched in February 2008 during New York Fashion Week and are expected to add further revenue and profit distribution to the company's bottom line.