I received the brown leather cover with my Cybook. When I opened it this morning to read while eating breakfast, I got an unmistakable whiff of leather scent, so I have to agree with those who have said the inside is definitely leather. However, judging by the impressed Cybook logo, the outside is a manmade material--they couldn't do that kind of impression on real leather, or at least it would look different. It's also a slightly different color from the inside.
I have to say if I was choosing a cover and had a choice, I would prefer black without the contrasting stitching, but the brown cover is sleek, fits the device nicely and holds it securely, and gives great protection for carrying the Cybook in my purse with my other gadgets and girl-things. I have really come to like it in the four whole days I've owned the Cybook.

I particularly like the magnets; as has been said by others, once you've had a few reading sessions while folding the cover back, the magnets work great and hold the cover shut.