SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of May, 2005

Benetton Group S.p.A.

(Exact name of Registrant)

Via Villa Minelli, 1 - 31050 Ponzano Veneto, Treviso - ITALY

(Address of principal executive offices)

(Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F)

Form 20-F X Form 40-F ______

(Indicate by check mark whether the Registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934).

Yes ______ No X

TABLE OF CONTENTS
Press Release dated May 16, 2005
BENETTON GROUP SHAREHOLDERS' MEETING APPROVES 2004 FINANCIAL STATEMENTS
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Benetton Group S.p.A.

By: /s/ Luciano Benetton

______________________

Name: Luciano Benetton

Title: Chairman

Dated: May 1630, 2005

~~IAS/IFRS~~Benetton ~~accounting principles adopted as from consolidated half-year report to June 30, 2005~~Group

~~BENETTON~~2005 ~~GROUP~~first ~~SHAREHOLDERS'~~quarter ~~MEETING APPROVES 2004 FINANCIAL STATEMENTS~~report

~~Board appoints Alessandro~~ Benetton asGroup ~~Deputy Chairman of the company~~S.p.A.

~~Ponzano,~~Villa May 16 2005 - Today's Benetton Group shareholders' meeting, chaired by Luciano Benetton, approved the 2004 financial statements, which closed with consolidated revenues of 1,686 million euro (1,859 million in 2003), increased net income of 123 million euro (108 million in 2003) and an improved net financial position of 431 million euro (468 million in 2003). Distribution of a 0.34 euro per share dividend was approved (0.38 euro in the previous year), payable as from May 26, confirming a pay out ratio of 50 per cent relative to consolidated net income.Minelli

~~The~~Ponzano ~~Group~~Veneto is(Treviso) ~~adopting IAS/IFRS accounting principles as from the consolidated half~~-~~year~~ report to June 30, 2005. The independent auditors will be given the task of performing a full audit of the balances in the 2004 reconciliation, as required by IFRS 1, and a limited audit of the financial results for the current half-year and the comparative period of 2004, as well as of IAS/IFRS balance sheet values as of June 30, 2005.Italy

~~The~~Share ~~shareholders'~~Capital: ~~meeting~~Euro ~~also reappointed the Board directors~~236, ~~the mandate of all of whom was expiring~~026, ~~including Giorgio Brunetti, appointed by co-option last March, and it approved the composition of the Board of Statutory Auditors, including Antonio Cortellazzo, who came in to replace Dino Sesani~~454.30 fully paid

~~The~~Tax ~~extraordinary~~ID/Treviso ~~meeting then approved a change to the articles of association which allows the appointment of a second Deputy Chairman of the~~ Company's ~~Board~~register: ~~of Directors.~~00193320264

The Benetton Group Board of Directors, meeting after the company shareholders' meeting, approved the appointment of Alessandro Benetton as Deputy Chairman. The Board also resolved to entrust Deputy Chairman Alessandro Benetton with the task of overseeing Group expansion and development in Eastern and Far Eastern markets, with special reference to China and India.

Index		The Benetton Group
	3	Directors and other officers
	4	Financial highlights

	5	Directors' Report
		Results for first quarter 2005
		Significant events in the quarter
		Outlook for the year

	6	Financial statements and related explanatory notes
		Explanatory notes
	7	Consolidated Group results
		-Consolidated statement of income with revenues and cost of sales reclassified
	8	-First quarter 2005
	11	-Consolidated balance sheet reclassified according to financial criteria
	13	-Financial situation - highlights
	15	-Statement of cash flow

Alessandro Benetton, 41 years old, founded 21 Investimenti S.p.A. in 1993 and is currently Chairman of that company. He is a member of the Executive Committee and Board of the Benetton Group, as well as, amongst other appointments, a member of the Boards of Edizione Holding, Autogrill and other companies in which the 21 Investimenti group has a holding. He is on the Advisory Committee of Robert Bosch Internationale Beteiligungen and is on the council of Confindustria (Confederation of Italian Industry). He started his career in the Global Finance department of Goldman Sachs and was Chairman of Benetton Formula from 1988 to 1998. He has a degree in Business Administration from the University of Boston and obtained a Master's degree in Business Administration at Harvard.

The Benetton Group	Directors and other officers

	Board of Directors

	Luciano Benetton ⁽¹⁾	Chairman

	Carlo Benetton	Deputy Chairman

	Silvano Cassano ⁽²⁾	Managing Director

	Giuliana Benetton	Directors
	Gilberto Benetton
	Alessandro Benetton
	Reginald Bartholomew
	Luigi Arturo Bianchi
	Giorgio Brunetti
	Gianni Mion
	Ulrich Weiss

	Pierluigi Bortolussi	Secretary to the Board

	Board of Statutory Auditors
	Angelo Casò	Chairman

	Filippo Duodo	Auditors
	Dino Sesani

	Antonio Cortellazzo	Alternate Auditors
	Marco Leotta

	Independent Auditors
	PricewaterhouseCoopers S.p.A.

~~The~~Powers ~~letter to shareholders from the chairman of the Benetton Group follows.~~granted

^{Letter to shareholders from the chairman and founder of the Benetton Group, Luciano Benetton(1)} Company representation and power to carry out any action that is consistent with the Company's purposes, except for those expressly reserved by law to the Board of Directors and to the Shareholders' Meeting, with limitation on some categories of action.

^{Dear Shareholders,(2)} Power to carry out any action relating to the ordinary administration of the Company as well as certain acts of extraordinary administration subject to limits on values.

~~2004~~Financial closes with the distribution of dividends totaling 50% of net income (which was higher than forecasted), demonstrating the policy of the Benetton Group to create value for the shareholders and the market.highlights

During the year, we confirmed our talent for exporting, making 50% of total sales abroad. Having always adopted the practice of thinking and planning with a long-term entrepreneurial mentality, we intend to stay ahead of the competition, concentrating on emerging markets like China and India, where we are already among the principal western players in the clothing sector. In the Chinese market, we distribute our products; and India, where we produce and distribute, is our bridgehead to entry into other Asian countries.

	1^st quarter		1^st quarter				Year
Key operating data (millions of euro)	2005	%	2004	%	Change	%	2004	%
Net revenues	378	100.0	381	100.0	(3)	(0.8)	1,686	100.0
Cost of sales	214	56.5	210	55.1	4	1.7	929	55.1
Gross operating income	164	43.5	171	44.9	(7)	(3.8)	757	44.9
Income from operations	36	9.4	45	11.9	(9)	(21.5)	217	12.9
Ordinary income	30	8.0	40	10.4	(10)	(23.8)	194	11.5
Net income	23	6.1	28	7.3	(5)	(16.9)	123	7.3

In fact, we are convinced that being entrepreneurs means believing in the future and in our abilities, taking advantage of difficult times in the market to become more competitive. And to invest more in the distribution network as well as in pricing policies that are more attractive to the customer.

Key financial data (millions of euro)	03.31.2005	12.31.2004	03.31.2004
Working capital	759	688	820
Assets due to be sold	6	8	8
Net capital employed	1,731	1,668	1,707
Net financial position	470	431	497
Shareholders' equity	1,255	1,230	1,204
Self-financing	59	312	68
Capital expenditures in tangible
and intangible fixed assets	23	152	21
Purchase of equity investments	-	22	15

In 2005, in particular, we intend to increase our commitment, earmarking resources of more than 200 million euro for development: with investments directed at restyling stores and new openings, as well as at the product, in order to achieve an even more excellent quality-price ratio, and at style and service to the network.

Share and market data	03.31.2005	12.31.2004	03.31.2004
Shareholders' equity per share (euro)	6.91	6.77	6.63
Price at period end (euro)	7.46	9.74	8.65
Screen-based market: high (euro)	10.15	10.18	9.37
Screen-based market: low (euro)	7.46	8.33	8.33
Market capitalization (thousands of euro)	1,354,429	1,768,383	1,570,484
Average no. of shares outstanding ⁽¹⁾	181,558,811	181,558,811	181,558,811
Number of shares outstanding	181,558,811	181,558,811	181,558,811

⁽¹⁾ Net of treasury shares held during the period.

These are important commitments that we take on with conviction and optimism because we believe in our network distribution model - a widespread presence in the world, in large capitals as well as in smaller towns - in cooperation with partners who, in turn, believe and invest in our common development plan.

	Number of personnel		03.31.2005	12.31.2004	03.31.2004
	Total employees		7,276	7,424	6,922

~~And~~Directors' ~~these are responsible choices, directed towards future growth, which can be achieved only by those with substantial economic strength and constantly reducing financial position.~~Report
Results for first quarter 2005

~~Luciano Benetton~~Group

net revenues for the first quarter of 2005 were 378 million euro compared with 381 million in the corresponding period of 2004. Casual sector sales amounted to 339 million euro, in line with the first quarter of 2004. Sports sector revenues were 16 million euro.

~~Chairman~~Gross ofoperating ~~the Benetton Group~~income

was 43.5 per cent of sales, compared with 44.9 per cent in the same period of 2004.

~~For~~Income ~~further~~from ~~information and contacts:~~ operations

was 36 million euro, 9.4% of revenues, compared with 11.9% in the corresponding period of 2004.

~~Media Investor~~Net ~~Relations~~ income

for the period was 23 million euro, compared with 28 million in the first quarter of 2004.

~~0039~~Free ~~0422519036 0039~~cash ~~0422519412~~flow

in the first three months was 42 million euro negative (51 million euro in the same period of 2004).

~~www.benettongroup.com/press www.benettongroup.com/investors~~Group

capital expenditure on tangible and intangible assets in the first quarter of 2005 amounted to 23 million euro compared with 21 million euro in the first quarter of 2004. The greater part of this expenditure, of around 15 million euro, was dedicated to the purchase, modernization and upgrading of properties for commercial use. Productive capital expenditure for the period amounted to 6 million euro and mainly related to plant and machinery in some Italian factories.

The

net financial position was 470 million euro, compared with 497 million as of March 31, 2004 and 431 million euro as of December 31, 2004. The change compared with year-end was mainly due to normal cyclical movements of working capital.

Significant events in the quarter

There were no significant events during the quarter, except for the co-option of the new independent director Giorgio Brunetti to replace Sergio De Simoi.

Outlook for the year

The Group has established an important policy of incentives for the network of partners, in line with the business model, with the objective of placing them in a condition to increase their investment capacity, to open new stores and to renew existing ones as well as to increase their competitive capacity in terms of price to the final customer.

On the commercial front, emphasis has been placed on development of some emerging markets, such as China and India, also through agreements with local large-scale retailers, for the opening of "store in store" facilities within large stores in the main cities. New initiatives also include the setting up of a new joint venture to manage and develop commercial activities in the Turkish market, which will be operational by the end of the first half of 2005.

At the same time, the Group is maintaining its strategic focus on policies of production and organizational efficiency, relative to the process of decentralization of production, completion of production cycles in overseas units and organizational cost reduction actions.

In this environment, consolidated revenues for 2005 are expected to be between 1,620 and 1,650 million euro, with EBIT between 9.5% and 10% of revenues. Net income of the order of 6% of revenues is forecast. The net financial position should improve further, to around 400 million euro, as a result of a positive free cash flow and net annual operative capital expenditure of 130 to 150 million euro, mostly targeted on development of the sales network.

Financial statements and related

explanatory notes

The first quarter directors' report has been prepared in accordance with the provisions of art. 82 of the Regulation approved by Consob resolution no. 11971 of May 14, 1999 to implement Legislative Decree no. 58 of February 24, 1998 relating to issuers.

Accounting policies and consolidation criteria used are in line with those adopted for the preparation of the 2004 annual financial statements. As already done by foreign subsidiaries, the Italian companies, with effect from January 1, 2005, are calculating depreciation on commercial buildings based on a useful life of 50 years instead of 33.

On the basis of changes to Regulation no. 11971/1999, following the coming into effect of E.U. regulation no. 1606/2002 (the so-called "IAS/IFRS Regulation") relating to the application of international accounting policies (IAS/IFRS), the Group has opted for the application of art. 82 bis, according to which "share issuers may prepare quarterly reports relative to the period commencing January 1, 2005, or a subsequent date, and which are approved by September 30, 2005, in accordance with the policies used in the previous year annual and consolidated financial statements".

Therefore the quarterly consolidated statement of income and balance sheet as of March 31, 2005 are shown in the same format as that used in the preparation of the Directors' report for 2004, in observance of other provisions of the same art. 82 bis.

The Group intends to adopt IAS/IFRS accounting principles as from the consolidated half-year report as of June 30, 2005.

The transition date, namely the opening date of the financial year prior to that of first-time adoption of IAS/IFRS, is January 1, 2004. The consolidated balance sheet as of that date is required to be adjusted on the basis of international accounting standards as if they had always been applied, with the exception of obligatory and optional concessions set out in IFRS 1.

For the purposes of adjusting the opening balance sheet at the transition date and of the consolidated financial statements to December 31, 2004, the Benetton Group will adopt the following options stated in IAS/IFRS for preparing the financial statements:

- in the balance sheet, assets and liabilities will be classified according the criterion which divides categories between "current" and "non-current";

- the statement of income will be classified based on the nature of costs.

As recommended by Consob resolution no. 14490 of April 14, 2005, the independent auditors will be given the task of performing a full audit of the balances in the reconciliation required by IFRS 1 (first adoption of International Financial Reporting Standards) and, therefore, of the values in consolidated shareholders' equity at the start and end of the previous year, as well as of the income statement for the same year, on the basis of the above-mentioned IAS/IFRS accounting policies.

In addition, instructions given for the accounting audit of the half-year report provide for further significant checks in the limited audit of IAS/IFRS income statement data relating to both the current half-year and the preceding one (to June 30, 2004 and June 30, 2005), as well as of IAS/IFRS balance sheet values at the end of the previous year and of the current half year (to December 31, 2004 and June 30, 2005).

The first annual financial statements of the Benetton Group that will be prepared in accordance with international accounting standards will be those for the year ending December 31, 2005.

Consolidated Group results

Consolidated statement of income with revenues and cost of sales reclassified as used in internal reporting

		1^st quarter		1^st quarter
(thousands of euro)		2005	%	2004	%	Change	%
Revenues		378,209	100.0	381,199	100.0	(2,990)	(0.8)

Cost of sales
	Materials consumed	106,369	28.1	91,106	23.9	15,263	16.8
	Payroll and related costs	20,621	5.5	23,966	6.3	(3,345)	(14.0)
	Subcontract work	71,273	18.8	78,859	20.7	(7,586)	(9.6)
	Industrial depreciation and amortization	5,211	1.4	5,687	1.5	(476)	(8.4)
	Other manufacturing costs	10,285	2.7	10,567	2.7	(282)	(2.7)
		213,759	56.5	210,185	55.1	3,574	1.7

Gross operating income		164,450	43.5	171,014	44.9	(6,564)	(3.8)

Selling, general and administrative expenses
	Distribution and transport	6,717	1.8	6,725	1.8	(8)	(0.1)
	Sales commissions	15,663	4.1	18,222	4.8	(2,559)	(14.0)
	Advertising and sponsorships	13,779	3.6	13,842	3.6	(63)	(0.5)
	Payroll and related costs	30,837	8.2	28,700	7.5	2,137	7.4
	Depreciation and amortization	20,129	5.3	18,842	5.0	1,287	6.8
	Other expenses	41,756	11.1	39,370	10.3	2,386	6.1
		128,881	34.1	125,701	33.0	3,180	2.5

Income from operations		35,569	9.4	45,313	11.9	(9,744)	(21.5)

Other income/(expenses)
	Net foreign currency hedging gains/(losses) and exchange rate differences
		314	0.1	133	0.0	181	n.s.
	Financial income	5,263	1.4	5,869	1.5	(606)	(10.3)
	Financial expenses	(10,893)	(2.9)	(11,599)	(3.0)	706	(6.1)
	Other income/(expenses), net	(939)	(0.2)	(753)	(0.2)	(186)	24.7
		(6,255)	(1.6)	(6,350)	(1.7)	95	(1.5)

Income before taxes and minority interests
Income before taxes and minority interests		29,314	7.8	38,963	10.2	(9,649)	(24.8)

	Income taxes	6,692	1.8	11,397	3.0	(4,705)	(41.3)

Income before minority interests
Income before minority interests		22,622	6.0	27,566	7.2	(4,944)	(17.9)

	Loss attributable to minority interests	461	0.1	198	0.1	263	n.s.

Net income for the period		23,083	6.1	27,764	7.3	(4,681)	(16.9)

First quarter 2005

Revenues for the first quarter of 2005 were 378 million euro, compared with 381 million in the corresponding period of 2004. Casual sector sales amounted to 339 million euro, in line with the first quarter of 2004, thanks also to an increase in retail sales, resulting from the acquisition of new directly managed stores in the second half of 2004, and a different product mix.

In the sports sector, the net negative variation in revenues amounted to 4 million euro and resulted mainly from a 6 million euro reduction in sales of sportswear and a small increase in sports equipment revenues. Manufacturing revenues were maintained substantially in line with the first quarter of 2004.

Consolidated cost of sales was 214 million euro compared with 210 million in the corresponding period of 2004, rising from 55.1% of revenues to 56.5%, mainly influenced by the enriched product mix.

Group gross operating income was 164 million euro, 43.5% of revenues compared with 44.9% in the first quarter of 2004, with a reduction of around 7 million euro due to both the casual and sportswear businesses.

Selling, general and administrative costs, of 129 million euro, 34.1% of revenues, increased by around 3 million, equivalent to 2.5%, mainly due to expansion of the directly managed sales network. Variable distribution and transport costs were largely in line with the comparative period, in terms of both absolute value and as a percentage of revenues. Sales commissions reduced by 2.5 million euro, due mainly to transfer to the Group of agencies in Italy and Germany which were managed by third parties in the first quarter of 2004. Advertising and sponsorship expenses remained constant in terms of both absolute value and as a percentage of revenues.

Payroll costs increased by 7.4% as a result of the above-mentioned strengthening of the directly managed sales network in the second half of 2004, in particular in the German market.

Depreciation and amortization increased as a result of commercial investments made after the first quarter of 2004 and of costs arising from the early termination of a business lease contract which resulted in full depreciation and amortization of all costs associated with the activity.

Other expenses included general organizational expenses, net operating expenses and accruals.

General organizational costs reduced by 3.5% as a result of rationalization and cost reduction actions. Other operating income and expense were impacted by the increase in rental costs related to the sales network, increasing from 4% to 4.2% of revenues.

Although receipts from customers were satisfactory, increased provisions to the reserve for doubtful accounts were made in the period relative to a few specific accounts.

Income from operations was 36 million euro compared with 45 million in the first quarter of 2004, moving from 11.9% to 9.4% of revenues. This change was mainly caused by the reduction in gross operating income, as described above, and the increase in expenses due to expansion of the directly managed sales network.

There was no significant change in net exchange rate differences, nor in the percentage of net financial expense.

Net income was 23 million euro, 6.1% of revenues, compared with 28 million euro in the first quarter of 2004.

Revenues by geographical area and business sector

(millions of euro)	Europe	%	The Americas	%	Asia	%	Rest of the world	%	1^st quarter 2005	1^st quarter 2004	Change%
Casual	271	88.1	24	99.4	43	97.3	1	55.1	339	339	0.1
Sportswear and equipment
Sportswear and equipment	15	4.9	-	0.3	1	1.7	-	-	16	20	(20.3)
Manufacturing and other	22	7.0	-	0.3	-	1.0	1	44.9	23	22	2.8
Total 1^st quarter 2005	308	100.0	24	100.0	44	100.0	2	100.0	378	381	(0.8)
Total 1^st quarter 2004	319		21		40		1		381

As from 2005, sales in Turkey have been reclassified from Asia to Europe; as a result, 2004 values have also been adjusted in line with the new geographic grouping.

Business sectors.

The Group's activities are traditionally divided into three sectors to provide the basis for effective administration and decision-making by company management, and to supply accurate and relevant information about company performance to financial investors.

The business sectors are as follows:

- casual, representing the Benetton brands (United Colors of Benetton, Undercolors and Sisley), including figures for the retail business as well as complementary products, such as accessories and footwear;

sportswear and equipment, under the Playlife and Killer Loop brands; it also includes sales of equipment relating to production for third parties by a Group manufacturing company;

- manufacturing and other, composed mainly of sales of raw materials, semi-finished products and industrial services as well as of revenues and expenses from real estate activities.

Casual sector results

	1^st quarter		1^st quarter
(millions of euro)	2005	%	2004	%	Change	%
Total sector revenues	339	100.0	339	100.0	-	0.1
Cost of sales	(183)	(53.9)	(179)	(52.7)	(4)	(2.4)
Gross operating income	156	46.1	160	47.3	(4)	(2.3)
Selling, general and administrative expenses	(122)	(36.1)	(117)	(34.6)	(5)	(4.5)
Income from operations	34	10.0	43	12.7	(9)	(21.0)

Casual sector revenues were in line with the corresponding period of 2004. Cost of sales increased in terms of both absolute value, from 179 to 183 million euro, and as a percentage of revenues, 53.9% compared with 52.7% in the first quarter of 2004; this was mainly due to an enrichment of product mix.

Gross operating income was 156 million euro compared with 160 million in the comparative period, moving from 47.3% to 46.1% of revenues.

Selling, general and administrative expenses increased by 4.5% compared with the first quarter of 2004; in particular, there were increases in payroll costs, depreciation and amortization and rental costs associated with the initiatives undertaken for the sales network. General organizational expenses reduced as a result of rationalization and cost reduction actions.

Income from operations moved from 12.7% to 10% of revenues as a result of the above changes.

Sportswear and equipment sector results

	1^st quarter		1^st quarter
(millions of euro)	2005	%	2004	%	Change	%
Total sector revenues	16	100.0	20	100.0	(4)	(20.3)
Cost of sales	(11)	(68.5)	(13)	(64.9)	2	15.9
Gross operating income	5	31.5	7	35.1	(2)	(28.5)
Selling, general and administrative expenses	(3)	(21.6)	(5)	(23.7)	2	27.6
Income from operations	2	9.9	2	11.4	(0)	(30.5)

The change in revenues for this sector was entirely due to the reduction in sportswear sales; in fact, sales for this area were 10 million euro compared with 16 million in the first quarter of 2004, with a reduction of 6 million euro.

Income from operations was 9.9% of revenues compared with 11.4% in the relative comparative period; the reduction was exclusively due to the contraction in gross operating income as explained above, while selling, general and administrative expenses reduced in both absolute and percentage terms.

Manufacturing and other sector results

	1^st quarter	,	1^st quarter	,
(millions of euro)	2005	%	2004	%	Change	%
Total sector revenues	23	100.0	22	100.0	1	2.8
Cost of sales	(20)	(87.8)	(18)	(83.9)	(2)	(7.6)
Gross operating income	3	12.2	4	16.1	(1)	(22.3)
Selling, general and administrative expenses	(3)	(12.1)	(4)	(15.9)	1	22.2
Income from operations	0	0.1	0	0.2	(0)	n.s.

Manufacturing sector sales to third parties were in line with the first quarter of 2004. Due to the increase in the cost of sales in both absolute and percentage terms, gross operating income moved from 4 million to 3 million euro, causing the percentage of revenues to move from 16.1% to 12.2%. Also in this sector, there was a reduction in selling, general and administrative expenses. Income from operations, substantially breakeven, was in line with the first quarter of 2004.

Consolidated balance sheet reclassified according to financial criteria

(thousands of euro)
Assets		03.31.2005	12.31.2004	03.31.2004
Current assets
	Cash and banks	173,137	260,196	283,386
	Marketable securities	158,442	117,879	27,539
	Differentials on forward transactions	10,818	6,857	9,834
	Short-term financial receivables	7,986	9,167	16,302
		350,383	394,099	337,061

	Accounts receivable
	Trade receivables	792,998	755,082	859,351
	Other receivables	233,656	249,328	276,136
	less - Reserve for doubtful accounts	(99,312)	(97,642)	(99,412)
		927,342	906,768	1,036,075

	Assets due to be sold	5,640	7,840	8,356
	Inventories	285,089	255,436	263,682
	Accrued income and prepaid expenses	12,827	13,367	14,875
		303,556	276,643	286,913
	Total current assets	1,581,281	1,577,510	1,660,049

Financial fixed assets
	Equity investments	5,201	5,116	17,880
	Securities held as fixed assets	223	223	9
	Guarantee deposits	16,770	16,715	16,337
	Medium/long-term financial receivables	24,694	28,273	30,292
	Other non-current receivables	48,378	44,436	8,069
	Total financial fixed assets	95,266	94,763	72,587

Tangible fixed assets
	Real estate	708,432	703,449	646,310
	Plant, machinery and equipment	313,356	305,636	339,964
	Office furniture, furnishings and electronic equipment	113,993	112,655	101,300
	Vehicles and aircraft	22,346	22,366	22,838
	Assets under construction and advances for tangible fixed assets	3,427	3,724	15,772
	Assets acquired through finance leases	13,275	13,259	17,627
	less - Accumulated depreciation	(431,746)	(419,293)	(421,898)
	Total tangible fixed assets	743,083	741,796	721,913

Intangible fixed assets
	Licenses, trademarks and industrial patents	24,090	25,041	26,960
	Deferred charges	181,984	184,392	192,759
	Total intangible fixed assets	206,074	209,433	219,719
TOTAL ASSETS		2,625,704	2,623,502	2,674,268

(thousands of euro)
Liabilities and Shareholders' equity		03.31.2005	12.31.2004	03.31.2004
Current liabilities
	Due to banks	11,105	19,924	24,429
	Bonds	300,000	300,000	-
	Short-term loans	6,993	4,985	7,902
	Current portion of medium/long-term loans	841	1,101	1,320
	Current portion of lease financing	6,071	6,007	6,243
	Trade payables	284,342	284,011	291,474
	Other payables, accrued expenses and deferred income	77,948	93,422	77,946
	Reserve for income taxes	15,524	14,113	130,517
	Total current liabilities	702,824	723,563	539,831

Medium/long-term liabilities
	Bonds	-	-	300,000
	Medium/long-term loans,
	net of current portion	500,946	501,180	501,765
	Other medium/long-term liabilities	42,267	41,343	8,135
	Lease financing	16,206	17,748	22,753
	Reserve for employee termination indemnities	50,054	51,518	49,296
	Other reserves	51,680	50,990	42,267
	Total medium/long-term liabilities	661,153	662,779	924,216

Minority interests in consolidated subsidiaries		6,292	6,840	5,677

Shareholders' equity
	Share Capital	236,026	236,026	236,026
	Additional paid-in capital	56,574	56,574	56,574
	Surplus from monetary revaluation of assets	21,452	22,058	22,058
	Other reserves and retained earnings	916,267	790,211	859,205
	Translation differences	2,033	2,377	2,917
	Net income for the period	23,083	123,074	27,764
	Total Shareholders' equity	1,255,435	1,230,320	1,204,544
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		2,625,704	2,623,502	2,674,268

Financial situation - highlights

taken from internal reports

(millions of euro)	03.31.2005	12.31.2004	Change	03.31.2004
Working capital	759	688	71	820
Assets due to be sold	6	8	(2)	8
Total capital employed	1,731	1,668	63	1,707
Net financial position	470	431	39	497
Shareholders' equity	1,255	1,230	25	1,204
Minority interests	6	7	(1)	6

Compared with December 31, 2004, working capital increased by 71 million euro, mainly due to normal cyclical movements, with an increase in trade receivables and inventories partially offset by the reduction in trade payables. Assets due to be sold relate to a factory in the manufacturing sector, while those in the first quarter of 2004 related to the sports equipment sector.

The change in net capital employed, in addition to comments already made, was also due to the combined effect of the following factors:

- additions to tangible and intangible fixed assets as a result of capital expenditure totaling 23 million euro;

- depreciation, amortization and sales of fixed assets of 25 million and 1 million euro respectively;

- decrease in deferred tax assets of 5 million euro.

Compared with the first quarter of 2004, working capital improved, mainly due the reduction in receivables, while inventories increased, also as a result of the expansion of the directly managed sales network.

The net financial position was 470 million euro, increasing by 39 million euro compared with December 31, 2004, and was made up as follows:

(millions of euro)	03.31.2005	12.31.2004	03.31.2004
Current financial assets:
- Italian government securities and monetary funds and bonds	158	118	28
- bank deposits	95	141	181
- cash and ordinary current accounts	78	119	102
- other short-term financial receivables	19	16	26
Total current financial assets	350	394	337

Medium-term financial receivables	25	29	30
Total financial assets	375	423	367

Current financial liabilities:
- bond loan	(300)	(300)	-
- short-term financial payables	(18)	(25)	(33)
- current portion of medium-term debt	(1)	(1)	(1)
- current portion of amounts due to leasing companies	(6)	(6)	(6)
Total current financial liabilities	(325)	(332)	(40)

Medium-term financial payables:
- bond loan	-	-	(300)
- syndicated loan	(500)	(500)	(500)
- other medium-term loans	(4)	(4)	(2)
- due to leasing companies	(16)	(18)	(22)
Total medium-term financial payables	(520)	(522)	(824)
Total financial liabilities	(845)	(854)	(864)
Net financial position	(470)	(431)	(497)

Net short-term financial position	25	62	297
Net medium-term financial position	(495)	(493)	(794)
Net financial position	(470)	(431)	(497)

To provide better support for Group business cycles and to meet future commitments, on March 4, 2005, the Board of Directors authorized the management to negotiate a revolving line of credit for a maximum amount of 500 million euro and with a maximum duration of 5 years.

These financial resources, of 350 million euro as of March 31, 2005, will enable us to meet the maturity date in July 2005 of the 300 million euro bond loan, which places limitations on giving collateral security for new loans but does not require observance of any financial ratio ("financial covenants").

The syndicated loan of 500 million euro, maturing in July 2007, provides for compliance with two financial ratios that have to be calculated every six months based on the consolidated financial statements, namely:

- minimum ratio between EBITD (earnings before interest, tax and depreciation) and net financial charges of 2.5 times;

- maximum ratio between the net financial position and shareholders' equity of 1.

There are also limitations on significant business disposals and on the granting of collateral security for new loans.

Statement of cash flow

	1^st quarter	1^st quarter	Year
(millions of euro)	2005	2004	2004
Cash flow from operating activities	(20)	(21)	269
Net operating capital expenditure	(22)	(15)	(69)
Change in financial fixed assets	-	(15)	(23)
Free cash flow	(42)	(51)	177
Payment of dividends	(0)	-	(69)
Payment of substitute tax	-	-	(125)
Disposal of the sports equipment sector	-	27	50
Net financial (requirements)/surplus	(42)	(24)	33

The negative cash flow from operating activities was substantially in line with the first quarter of 2004, while free cash flow was 42 million euro compared with 51 million in the first quarter of 2004, although net operating investments were higher.

Corporate information	Headquarters
Corporate information	Benetton Group S.p.A.
	Villa Minelli
	31050 Ponzano Veneto (Treviso) - Italy
	tel +39 0422 519111

	Legal data
	Share Capital: Euro 236,026,454.30 fully paid
	R.E.A. (register of Commerce) no. 84146
	Tax ID/Treviso Company register no. 00193320264

	Media & communications department
	e-mail: press@benetton.it
	tel +39 0422 519036
	fax +39 0422 519930

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	e-mail: invrel@benetton.it investor@benetton.it
	tel +39 0422 519412
	fax +39 0422 519740
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