UNISOL not only has valuable know-how of the local market, but also combines broad product and marketing experience with an extensive manufacturing background. Through this joint venture PUMA’s position in Argentina will be further strengthened and maximized. Argentina currently is the largest market for PUMA in Latin America.

Jochen Zeitz, CEO and Chairman of PUMA AG: “As licensee UNISOL have done an outstanding job in the past – not only in building the brand, but also in extending brand visibility. With the new partnership as well as our direct involvement in the management of all aspects of our brand, we will ensure that we jointly capitalize even more on future opportunities and further accelerate desirability throughout the South American market.”

Nisan Devecyan, Managing Partner of UNISOL S.A.: “We would like to thank PUMA for the trustful partnership over the past decades. Now with this joint venture cooperation we will be able to quickly explore the further potential in the Argentine market.”

“We are pleased to contribute to the mission of UNITED FOR AFRICA and their humanitarian efforts. With our number one position in African football, PUMA has a great opportunity to raise awareness and support the UNITED FOR AFRICA initiatives,” said Jochen Zeitz, PUMA Chairman and CEO.

As the current supplier to the Angola, Cameroon, Egypt, Ghana, Ivory Coast, Senegal, Togo and Tunisia Football Associations, PUMA has a long history and strong affiliation with African Football. The 2006 partnership with UNITED FOR AFRICA is an extension of that commitment.

About UNITED FOR AFRICA

Under the patronage of German Federal President Horst Koehler, over thirty international charity organisations have joined forces through the initiative UNITED FOR AFRICA. The aim of UNITED FOR AFRICA is to act against the conception of Africa as the “lost continent” and to attract the attention of the public not only to the long-term plight and poverty of millions of people on the African continent, but also to their potential and the signs of hope.

This umbrella initiative maintains more than 5000 projects throughout the African continent. The variety of projects includes support for street children, orphanages, AIDS-education programs, and counselling for child soldiers. Helping people to help themselves is the aim of the local work that has been done by mainly African local staff. More details available at www.united-for-africa.org

Over a period of one year, two PUMA suppliers in El Salvador will be monitored particularly for the following topics: non-discrimination of women, freedom of association including the right to collective bargaining, and correct overtime and wage accounting. The codes of conduct from CCC and PUMA will act as guidelines in this process. In addition to unannounced factory visits, PUMA and CCC will also facilitate workshops and training for workers in order to more effectively include the employees in the social compliance process. PUMA and CCC will be supported by the independent local organisation “Grupo de Monitoreo Independiente de El Salvador” (GMIES) that enjoys great confidence among employees in El Salvador. GMIES will manage worker training together with the women’s organisation ORMUSA.

“We are looking forward to this new form of cooperation with Clean Clothes Campaign and we will use the gained experience for the further development of our social standards. This project shows that our way of constructive dialogue has lead to increased confidence in cooperating with NGOs. The cooperation with CCC will further contribute to more transparency and social accountability among our supply base.” says Martin Gaensler, Vice Chairman of the Board of Management at PUMA.

“For the Clean Clothes Campaign this cooperation is a challenging and innovative step at the same time. This project with PUMA puts workers and organizations of civil society in the centre. Based on two factories in El Salvador, the CCC hopes to achieve an examination, analysis and improvement of PUMA’s monitoring system, especially relating to gender-issues, as well as jointly working on questions of freedom of association and working hours.” says Maik Pflaum of the CCC.

Michael Dawson, Michael Carrick and Jermaine Jenas
“PUMA is delighted to have reached an agreement with Tottenham,” said Andrew Peters, Managing Director, PUMA UK. “They are a big club in the most watched league in the world, and as such are of course a very attractive proposition for us. Tottenham Hotspur are a significant part of our global investment and we are proud to be working with them and that they have chosen to partner with us.”

The new kit design will be the first playing shirt to feature the new Tottenham Hotspurs crest. The club will endorse PUMA’s new v1.06 line which is designed to get the players to the ball faster. The state of the art v1.06 products are revolutionary lightweight, have aerodynamic advantages and offer comfort through advanced technology, material selection and construction. The form and function of the v1.06 combine to create a radically different and distinctive product concept.

“PUMA is a top-quality brand and we look forward to enjoying a terrific partnership,” commented Daniel Levy, Chairman, Tottenham Hotspur. “I know PUMA will deliver an exceptional range of clothing for our fans as well as designing a stylish new kit for the upcoming season.”

Tottenham, whose honours include three European Cup titles, two league championships and countless English cup victories are currently ranked fourth in the league.

A panel of high profile judges led by actress Franka Potente, and including other celebrities such as Faithless front-man Maxi Jazz, world-class athlete Tim Lobinger, football-star Daniel van Buyten, acting shooting star Doreen Dietel and PUMA spokesperson Ulf Santjer will select the final dozen in April.

In May the 12 Adoptees will embark on a multi-city European tour. Here they will promote their home country in a unique and personal manner, helping to dispel myths and project a more realistic image of Germany. The Adoptees will record their exploits by personal blogs allowing them to interact with the citizens of the world and generate excitement and interest in Germany and this summer’s tournament. People all over the world will be able to decide which of the 12 they would like to “adopt” as their German.

Their final ambassadorial duties will be at the World Cup itself where they will take up permanent residence at Café MosKau, the PUMA hospitality house in Berlin. Here they will be available to meet and greet their newfound friends and fans at a series of events.

PUMA spokesperson, Ulf Santjer: “As the eyes of the world turn to Germany summer, the country will see hundreds of thousands of visitors. PUMA wants to help welcome these visitors and at the same time address some misconceptions about the country and its people.”

Casting Cube Adoptee Application Tour Dates:

The search criteria for the adoptee demands nothing other than a personality and a desire to keep the world entertained with anecdotes and updates on what their city and their country has to offer. Germans will be able to apply via visiting PUMA Casting Cubes at each of the following cities:

23. Feb LEIPZIG Augustusplatz
27. Feb HAMBURG Spitalerstraße 22
28. Feb NUREMBERG Jakobsplatz
01. March MUNICH Theatinerstraße 1 (PUMA Concept Store)
02. March STUTTGART Koenigsstraße 21 (PUMA Concept Store)
06. March FRANKFURT Zeil 72-82 (PUMA Concept Store)
07. March KAISERSLAUTERN Schillerplatz
08. March COLOGNE Schildergasse 107-109 (PUMA Concept Store)
09. March HANOVER Steintorplatz
13. March BERLIN Rosenthaler Straße 40-41 (PUMA Concept Store)

Germans can also apply by visiting www.adoptagerman.com

The final 12 adoptees will be announced in April.

B-Roll footage and images from the launch available at www.thenewshub.co.uk and www.thenewsmarket.com

“Geoff Ogilvy embodies the combination of athletic excellence and style that is synonymous with the PUMA brand, and we congratulate him on this latest achievement” said Jochen Zeitz, PUMA Chairman and CEO. “Not only has he made his own mark in the world of Golf, he has attributed to PUMA’s successful entry into this category.”

“PUMA created a collection for golfers that truly meets their performance needs,” said Geoff Ogilvy. “Not only does the collection provide me with technical benefits and comfort I want, but PUMA offers a style and look that allows me to make a statement that fits my fashion sense.”
 Ogilvy was seen in various pieces from PUMA’s new spring and forthcoming autumn Golf collection throughout the World Golf Championships. PUMA Golf gave “The Cardiac Kid” all the performance attributes needed by a professional golfer while also creating an unexpected, modern look never seen before in the traditionally conservative world of golf.

During the five-day tournament, Geoff Ogilvy was seen wearing:

• The PG GTX spikes allowed for a close-to-the-ground feel, forefoot flexibility, ease of traction and transition through his golf swing.
• PUMA’s Golf Pants featuring a Teflon coated overlay on the back legs, pin tuck details on the center front legs and knee darts for articulation and ease of movement. Geoff accessorized his outfit with the black Golf Belt, which features the PUMA cat on the buckle.
• The merino wool Golf Knitted Sweater created a dramatic look, making Geoff truly visible during the competition.
• The Golf Polo in colors orchid pink, fresh salmon and crystal blue and the Golf Sleeveless Knit Top featuring a distinctive “18-hole” logo in a vibrant pastel color palette, adding a splash of color on the fairways and greens.
  
  

PUMA signed Ogilvy in January to a four-year agreement. As part of the deal, Ogilvy wore PUMA Golf footwear and apparel at all of his appearances on the Tour. In addition, beginning on March 18th, he will star in the company’s first global golf television and print advertising campaign with PUMA’s first female professional golfer, Erica Blasberg.

With Ogilvy’s win at the World Golf Championships Match Play, the Australian-born golfer achieves a career-high of 26th, an improvement of 27 spots according to The World Golf Rankings.

PUMA Golf offers performance footwear, apparel and accessories and select lifestyle pieces for men and women that will enhance your game as well as your style. The PUMA Golf Collection worn by Geoff Ogilvy lands at select retailers and PUMA Concept Stores worldwide in March 2006.

For more information visit www.puma.com
For images please visit www.thenewsmarket.com

“We are delighted with this partnership, it is truly a cooperation between two strong brands that complement each other,” declares Jochen Zeitz, CEO and Chairman of PUMA AG. “This partnership will ensure a unique brand visibility for PUMA in the run-up to, and during the World Cup. Once again, PUMA is forging new paths in marketing.”

“PUMA and dba are refreshingly innovative companies – our brands sit alongside each other superbly. I am therefore highly delighted at our cooperation, because it will attract great attention among dba passengers and all sports fans in Germany during the footballing summer of 2006,” declares the Chairman of the Supervisory Board at dba, Hans Rudolf Wöhrl.

A further factor of the cooperation will enable donations to be collected on all dba flights for the campaign ‘UNITED FOR AFRICA’ which will support more than 5,000 aid projects in Africa. Passengers’ attention will be drawn to the donation campaign through an on-board announcement, the distribution of bank transfer forms by the dba flight attendants during catering, and coverage in the in-flight magazine.

“With ‘UNITED FOR AFRICA’, we are delighted to be supporting the most important German aid campaign for the African continent. What convinced us was the fact that we are not only supporting just one, but 30 experienced organisations with this one partnership,” says Hans Rudolf Wöhrl.

Based in Sabae-City, Japan, the Charmant Group has 50 years of experience in spectacle frame production and today is one of the world’s leading integrated frame manufacturers, covering design, production, marketing and distribution. They already have extensive expertise in selling licensed brand names such as Boss, Hugo, Elle or Esprit. The group has an international operating presence and distribution coverage in almost 100 countries. Luxottica Group, the global leader in eyewear, is also part to the agreement and will become the exclusive retail and wholesale distributor in the key North American market in addition to distributing the new PUMA collections through its entire retail network worldwide.

Jochen Zeitz, CEO and Chairman of PUMA AG: “Eyewear is a logical extension of our brand, yet requires significant category-specific know-how and infrastructure, which Charmant Inc., as truly international player, is able to offer. Over the past decades Charmant has acquired a strong reputation for high quality eyewear. The new collection will blend technical innovation with our unique PUMA personality and will help us to further develop and strengthen our licensing business globally as part of Phase IV of our long-term business plan.”

Kaoru Horikawa, CEO and Chairman of the Charmant Group: “We are extremely pleased with the new license agreement and we look forward to working with our new partner. PUMA is one of the most successful Sportlifestyle companies and this co-operation will help us to further expand our business in design and lifestyle oriented market segments. PUMA’s unique and sophisticated design language will inspire our product team to create totally new and innovative eyewear designs ”

PUMA has over the past years successfully established business relationships with licensees in several sports and lifestyle related areas. Its current licensing portfolio includes watches, fragrances, bodywear and socks.

The press conference will include the unveiling of the PUMA Charity Collection: the styles exclusively created for the cooperation will be premiered in a special fashion show. The new, limited edition PUMA
charity collection will donate a customer-transparent amount from each collection item to UNITED FOR AFRICA. The collection will be available from the end of May 2006 at 10 different locations nationwide, including PUMA Concept Stores.

As a special highlight of the cooperation PUMA and UNITED FOR AFRICA will present the UNITED FOR AFRICA retail entertainment tram: Equipped with special informative and interactive material, and an outlet for the UNITED FOR AFRICA Charity Collection, the trams will run on allocated routes around Berlin from the beginning of June to the middle of July, promoting the UNITED FOR AFRICA campaign. Countless events and shows with celebrity artists and sportspersons will take place during this time in both the trams and Berlin’s Café Moskau, PUMA’s football headquarters during the World Cup, providing the necessary publicity to raise awareness for UNITED FOR AFRICA.

Additional campaign merchandise include a music CD and a unique “coffee table” book “The African Game”: the CD, featuring music from African and Western artists, uniquely mirrors the fusion of African traditions and modern influences. The book, a cooperation between the Nigerian fashion photographer Andrew Dosunmu and the author Knox Robinson, is an affectionate and photographic homage to Africa and football. The book and CD will be available in PUMA Concept Stores, the trams and Café Moskau and in retail stores nationwide. The entire sales revenue for these products will benefit UNITED FOR AFRICA.

Video clips and photos can be downloaded at http://about.puma.com/newsroom. For your initial registration please use “PUMA / UFA Press Release” in the field “contribution info”.
If you have any further questions please contact us by e-mail: puma@thenewsmarket.com.

Tavistock Holding S.A. possesses extensive sales and marketing experience with deep retail and distribution infrastructure in the Mexican market on which to further build the PUMA business. The aim of this partnership is to jointly explore the potential of the PUMA brand with its high brand awareness in the Mexican market, as well as to further enhance PUMA´s position as a desirable Sportlifestyle brand.

Jochen Zeitz, CEO and Chairman of PUMA: “During the past years, Tavistock has demonstrated thorough knowledge of the Mexican market. Tavistock´s ability to understand the complexities of such a country was crucial for achieving the impressive growth rates that PUMA has experienced in recent years. Their continuous support will be instrumental in achieving the ambitious goals we have set for Mexico in the context of our Phase IV long term development plan.”

Mario Espinosa, Chairman of Tavistock Mexico Holding S.A.: “We are pleased to continue our relationship with PUMA in a joint venture. We are very confident that by working closer together we will be able to unleash the potential of the Mexican market and expand the PUMA business.”

Strong start into 2006: Q1 better than expected

Highlights Q1:

• Strong start into 2006: Q1 better than expected
• Consolidated sales rise almost 30%
• Gross profit margin remains above 52%
• EBIT margin above 20% despite strong brand investments
• EPS at €5.83 compared to €5.68

Outlook 2006:

• Further improvement in orders, now up by 35% to €1.1 billion, EMEA up double-digit y-o-y
• Management increases sales and earnings guidance for 2006

Sales and Earnings Development

Global branded sales rise more than 15%

PUMA’s worldwide branded sales, which include consolidated and license sales, rose 15.3% to €737 million or currency adjusted by 11.8%. Footwear sales improved by 12.5%, Apparel by strong 19.1% and Accessories by almost 20%.

Consolidated sales rise almost 30%

In Q1, consolidated sales grew 29.5% (currency adjusted 25.4%) to €643 million. Hence, sales developed significantly better than expected with positive contributions from almost all product segments and regions. As already announced, due to the license take-backs and new Joint Ventures the consolidated business was extended to Japan (Apparel), China/Hong Kong, Taiwan China, Canada and Argentina effective January 1, 2006. Furthermore, the fully owned subsidiaries in Dubai and India started their operating activities as of this year. Like-for-like, organic growth contributed a strong 10,7% and new consolidations 18.8% to the overall performance. In total, Footwear was up 18% (currency adjusted 14%) to €399 million, Apparel by a healthy 63.1% (59.8%) to €202 million and Accessories by 21.6% (19.3%) to €42 million.

Licensed business up almost 10% on a like-for-like basis

On a like-for-like basis, the licensed business increased by 9.9% to €87 million. However, due to the take-backs of the aforementioned license markets, total licensed sales declined by 34.1% versus prior year. Based on the remaining licensed business, the company realized a royalty and commission income of €8.5 million in the first quarter versus €12.5 million in the prior year.

Gross profit remains above 52%

In Q1, gross profit margin stood better than expected at 52.4% compared to 53.4% last year, despite the planned and implemented shift in the regional and product mix. The Footwear margin decreased from 53.6% to 52% and Apparel from 53.4% to 52.9%. Accessories margin increased from 51.1% to 53.4%.

SG&A expenses at 32%

Due to strong brand investments and regional expansion, total SG&A rose 45.4% to €205 million. As a percentage of sales, the cost ratio increased as expected from 28.4% to 31.9%. The increase was mainly driven by strong Marketing/Retail expenses.

Marketing/Retail expenses rose as expected by 60.8% to above €100 million, representing a cost ratio of 15.6% compared to 12.6% last year. Product development and design expenses increased by almost 39% to €13 million and, as a percentage of sales, from 1.8% to 2%. Other selling, general and administrative expenses were up 32.4% to €92 million and remained around last year’s level at 14.3% of sales.

EBIT margin above 20%

  Despite the strong brand investments EBIT, margin reached 20.6% and remained on a very high level. In absolute amounts EBIT increased by 0.5% to €132 million versus the intitial expectation of an earnings decline. Due to a strong increase in the financial results, pre-tax profit grew by more than 1% to €134 million. The tax ratio remained at 29.5 % and was unchanged versus last year’s quarter.

Earnings per share above last year

In Q1, net earnings grew by 2.5%. In absolute amounts, net earnings accounted for €93 million versus €91 million last year. The net return amounts to 14.5% versus 18.3%. Earnings per share reached €5.83, a 2.7% increase to last year’s €5.68. Diluted earnings per share were calculated at €5.78 compared with €5.63.

Net Assets and Financial Position

Equity ratio above 60%

Despite a 42.9% increase in the balance sheet total to €1,552 million, the equity ratio further improved. The end of March equity ratio reached 61.4% compared with 58.2% last year.

Solid net cash position

Cash and cash equivalents grew from €323 million to €354 million and bank debts increased from €22 million to €68 million. Therefore, net cash position slightly decreased from €302 million to €286 million due to the strong investments, the take-backs and Joint Ventures inseveral markets.

Working capital

Inventories increased by 49.2% to €283 million and receivables were up by 34.4% to €476 million. Total working capital at the end of March increased 59.5% and amounted to €440 million compared with €276 million last year. The increase was mainly due to the regional expansion. Excluding the regional expansion inventories increased by 17% and receivables by 21%.

Capex/Cashflow

Capex increased from €21 million to €59 million, whereby €42 million are related to acquisitions. Tax payments rose from €21 million to €34 million. Due to these effects as well as the higher working capital due to the regional expansion, free cashflow was €-135 million compared to €-25 million last year.

Share Buyback

PUMA purchased another 50,000 of its own shares during the first three months. At quarter-end, a total of 940,000 shares were held as treasury stock, accounting for 5.6% of total share capital.

Regional Development

Change in regional mix

Due to the license take-backs and Joint Ventures, the regional mix changed significantly resulting in a more balanced regional business portfolio. Now, EMEA accounts for 52.8% (last year 72.2%), Americas for 28.3% (19%) and Asia/Pacific for 18.9% (8.8%).

Sales in the EMEA-region reached €339 million versus €359 million last year. The anticipated decline was due to the strong top-line performance in Q1 2005, hence leading to strong comp basis. Gross profit margin reached 55.2% compared to 55.6% last year. However, orders for EMEA now report a better than expected increase of nearly 12% to €600 million. All countries in this region contributed to the improvement.

Sales in the Americas continued to grow strongly. Currency adjusted, Q1 sales jumped 75.2% and in Euro terms by 93.1% to €182 million. The growth was due to a particularly strong organic business as well as the consolidation of Canada and Argentina. Gross profit margin increased from 46.1% to 47.5%. The order volume was up by a strong 87.8% to €310 million, or currency neutral by 71.6%.
In the US market, sales increased like-for-like by 62.4% to $157 million and end-of-quarter orders were up by strong 45.9%.

In the Asia/Pacific region sales increased by a strong 177.6% (currency-adjusted 179.5%) to €122 million. The organic growth contributed 17.7% to the overall performance and the remaining growth was contributed by the regional expansion. The gross profit margin increased by 100 basis points to 51.9%. As of March 31, 2006, orders on hand were up 114.6% (currency adjusted 115%) and totaled €187 million.

Outlook 2006

Future orders now up 35%

Consolidated orders further improved and increased by 35% (currency adjusted 31.3%) to €1,097 million. This represents the 41st consecutive quarter of order increase. In terms of product segments, Footwear increased by 29.8% (25.5%) to €720 million, Apparel 49.1% (46.4%) to €309 million and Accessories by 34.6% (32.1%) to €68 million.

Management increases sales and earnings guidance for FY2006

Due to a further improvement in the order position for the EMEA region and the overall strong performance in Q1, Management once again raises its sales forecast and now expects a growth of up to 35% for FY 2006, reaching almost €2.4 billion. The gross profit margin should range between 50% and 51%, given the anticipated shift in regional and product mix. The takeover of the license markets into the consolidated business will lead to a corresponding reduction in royalty and commission income. Selling, general and administrative expenses will be impacted in particular by disproportionately high marketing expenses relating to the World Cup and other PUMA campaigns, as well as by planned expansion of the Group’s retail operations and higher expenses for infrastructure. Overall operating expenses are assumed to rise to approximately 35% of sales. The operating margin is expected to decrease versus the prior year to approximately 15% of sales as a result of the brand-building investments in 2006 and conversion of the license businesses into consolidated business. Based on the higher top-line growth, Management also increases operating profit expectation to now around €360 million. The tax rate is expected to be below the original guidance and should be between 30% and 31%. As a result, net earnings are now expected to be only high single-digits below the previous year’s level. Thus, in absolute figures, net earnings are expected to significantly exceed the original expectations for 2006 communicated with the Phase IV strategy mid last year.

Jochen Zeitz, CEO: “We are pleased to have catalyzed our Phase IV growth plans with a Q1 above our expectations and the smooth integration of former licensee partners into our consolidated business. With the World Cup and other exciting initiatives still to come in 2006, we remain very positive in the outlook for the remainder of the year.“

The starting point and the basis for the development of a screw-in stud boot is PUMA’s “ATOM” football boot, launched on the market by PUMA’s founder, Rudolf Dassler, shortly after the company was founded in 1948/49. After a two-year development period during which Dassler worked on his screw-in stud technology, as early as 1951 there were experienced players from a variety of leagues trialling the revolutionary innovation. One year later, PUMA commenced serial production of the new screw-in stud boot, the “SUPER ATOM”. The first deliveries of the PUMA screw-in stud boot to both leading sportsmen and the trade took place at the start of the 1952/53 football season in Germany, which saw them being used for the first time on the football field. Of the 1. FC Kaiserslautern team which won the German championship on 21 June 1953, a total of seven players were using the PUMA screw-in stud boot. These included Horst Eckel and Werner Liebrich, whose outstanding sporting achievements saw them included in the German national team. In 1953, as part of an advertising campaign, PUMA made reference to the successful use of the “SUPER ATOM” among Germany’s footballing elite.

In assessing the importance of this development for football, Georg Hetzler, a master craftsman who was making boots at PUMA right from the earliest days, states: ” The sporting world was, of course, pleased to see the screw-in stud appear on the market, as the earlier soles were dangerous for the player. Once the studs had worn down, the heads of the nails were left standing exposed. Of course the risk of injury was extremely high, but this was no longer the case with the screw-in stud boot. And that’s why this product was received so well everywhere.”

Then in the next football season in 1953/54, another version of the PUMA boot was launched on the market as a further development. The new model appeared under the name “BRASIL” and also featured the screw-in stud system which had proved its worth in the meantime. In the game which decided that year’s German football championship, played on 23 May 1954, a total of eight out of the eleven Hannover 96 players were wearing the new PUMA screw-in stud boot.

At the end of this season, PUMA launched another advertising campaign, this time highlighting the success of the newly developed “BRASIL” football boot. The headline caption on the advertising poster read: “And so it was in Hamburg in the deciding match of the 1954 German football championship – PUMA playing a part again!” There were also photos of the final match shown, featuring Hannover 96 players in their PUMA screw-in stud boots.

One member of the team, Rolf Gehrke, remembers using the PUMA screw-in stud boot: “We were really delighted to get the boot from PUMA when we did. The advantage of the screw-in stud boot was that it could be fitted with different studs for different weather conditions. Before the match every player could decide for himself whether he wanted to play with long, short or medium-length studs. This was PUMA creating a genuine revolution!”

PUMA has successfully come up with the historical evidence that as early as one year before the 1954 World Cup in Switzerland the company had become the first to introduce the screw-in stud boot into to the market under conditions of serial production. In so doing, PUMA has refuted the accepted version of the initial use of the screw-in stud boot, which had it that the suppliers of equipment to the German national team came up with the screw-in stud boot on their own for the World Cup in Switzerland.