Diesel and Fossil Inc. said yesterday they have signed a worldwide licence agreement granting Fossil Inc. the exclusive rights to manufacture, market and distribute Diesel's jewellery collection.

Diesel had developed a small jewellery collection for its own retail distribution in 2003 and now with Fossil is about to expand it worldwide.

The agreement consolidates the strong partnership existing between the two companies. The partnership started in 1999 with the first worldwide deal related to Diesel's watch collection, Diesel Time Frames, which has been renewed through 2010.

Merging Diesel's 360° creative talent and Fossil's expertise to create exclusive and unique designs for young, cutting edge people, the collection is comprised of 80 pieces in several different themes that showcase the attention to detail that has always played a fundamental role in portraying the Diesel brand personality.

Prices will range from €30 to €600 and will be distributed in Diesel stores, select department stores and jewellery boutiques around the world. The first collection will be presented at Basel, Switzerland in April 2006.

Renzo Rosso, founder and president of Diesel said: "After experimenting a bit on our own, we feel confident this new partnership will revolutionise the jewellery industry. Diesel has been pioneering in many different fields, from aged denim to crazy marketing, always being ahead of the times. We now think it's time we started a new era also for this market, with less expensive and more creative products".

"Diesel is always on the forefront of design and with Fossil, the jewellery line will be no exception," Harold Brooks, president of Fossil Watches and Fashion Brands, said.

Diesel is represented locally by Raca Limited.