UPDATE, Tuesday, February 26

"I didn't know what I was wearing until two hours ago," Anne Hathaway told reporters Sunday evening. The actress, who made her way down the red carpet in a pale pink Prada number, not only surprised fashion, but also Valentino, who she was expected to wear to the 85th Academy Awards. The actress issued a public apology Tuesday for her fashion gaffe.

Here's the back story.

Valentino's team sent an early press release Sunday afternoon stating that Sally Field, Jennifer Aniston and Hathaway were all slated to appear in Valentino that evening. So it came as a bit of a shock when the Best Supporting Actress winner diverged from her usual formula of wearing Valentino to big events by replacing the legendary Italian designer with a disappointing - and much-debated - design by Miuccia Prada. Why then, did Hathaway pick a Prada comparative to Gwyneth Paltrow's Ralph Lauren gown circa 1999 just "hours" before the nominee rolled up to the Dolby Theatre?

A source told Fashionista Monday that Hathaway was set to wear a gown by Valentino when she spotted Amanda Seyfried's Alexander McQueen number and "freaked out." The dresses were reportedly too similar in design, and Hathaway's stylist Rachel Zoe had to make several last-minute calls to find the actress an appropriate replacement. Although, given the nature of Hathaway's "darted" dress, the term "appropriate" is to be used loosely in this case. For someone who prides herself upon being different and unique, it seems a custom Valentino gown wasn't special enough, especially with a Les Mis co-star strutting her stuff in a similar design.  

On Tuesday, Hathaway released the following statement to WWD and People:

It came to my attention late Saturday night that there would be a dress worn to the Oscars that is remarkably similar to the Valentino I had intended to wear, and so I decided it was best for all involved to change my plans. Though I love the dress I did wear, it was a difficult last minute decision as I had so looked forward to wearing Valentino in honor of the deep and meaningful relationship I have enjoyed with the house and with Valentino himself. I deeply regret any disappointment caused.

As do we, Anne. Click here to see how we graded Hathaway in Prada.