Marcel Wanders’ fame started with his iconic Knotted Chair, which he produced for Droog Design in 1996. He is now ubiquitous, designing for the biggest European contemporary design manufacturers like Cappellini, Bisazza, B&B Italia, Poliform, Moroso, Flos, Boffi, Droog Design and Moooi, of which he is founder and art director. His designs run from mass-produced objects to limited editions, from the Wanders Wonders collection, to interior and architectural projects. He was invited to be the guest editor of the International Design Yearbook 2005 and, in the same year, tried his hand in the hospitality business by realizing the highly acclaimed ‘Lute Suites’ – a series of seven apartments near Amsterdam. Wander’s work has been selected for all major design collections around the world.

“PUMA has a strong connection to changing culture and wants to stay close to cultural trends by being a leader at the same time,” said Marcel Wanders. “I love to find new areas for my creativity and create greater value for a larger audience. Although we are very different, we both believe we can create added value by inspiring our public in a seductive and creative way.”

The announcement was made at Design Boston 2006, Boston Design Center’s annual market for the architecture and design communities. The Marcel Wanders PUMA collection will be unveiled during Tokyo Design Week on October 31, 2006 and then in New York and Amsterdam in November. The collection will be available globally in all PUMA Stores and select retail partners in Spring 2007.

“With this new design concept, we once again surprise our customers with innovative and fun ways to promote the PUMA-experience in our stores and to thereby increase the brand desirability”, says Antone Bertone, Global Director of Brand Management.

“The design intent was to imagine not just another PUMA concept store, but a place where the PUMA energy was evident. I wanted to promote city style in a place that encourages casual shopping.” says Paolo Lucchetta of RetailDesign SRL and creator of the new store.

The store in Union Square joins two other PUMA stores in New York — a sport fashion store in the Meatpacking District and a PUMA Concept Store in Soho. The PUMA store in Union Square will carry diverse collections including Golf, Pelé, Evisu and Clyde among many others. Since opening its first retail store in 1999, PUMA now has over 40 Concept Stores in the United States and over 80 stores worldwide.

PUMA is extremely pleased to partner-up with Ducati, as the brand not only stands for outstanding performance resulting in high core credibility, but also incorporates the sportlifestyle aspect in their products. With a total of 12 Riders’ and 14 Manufacturers’ world championship titles, Ducati Corse represents an unparalleled racing team. With iconic motorcycles such as the Monster, Ducati Motor Holding is a premier, design-led brand that focuses – like PUMA – on the desirability of its products.

“We aimed at teaming up with a brand that is deeply rooted in the core business of motorsport without neglecting the sportlifestyle component. Like PUMA, Ducati is known throughout the world for pushing the boundaries of both performance and style, and we believe that this partnership is a perfect way to bring innovative Moto products to our consumers”, says Jochen Zeitz, CEO of PUMA AG.

Ducati Motors Holding CEO Federico Minoli: “We are extremely pleased to have PUMA as new partner and supplier. Besides the racing team, there are other parallels between PUMA and Ducati which make them an ideal team: Both brands are consumer-driven, design-led and both are thirsty for innovation and engineering newness.”

The common performance and sportlifestyle collection will be launched in spring 2007 and distributed in selected Ducati and PUMA retail stores as well as in wholesale partner stores. This partnership is a further milestone in PUMAs long term mission to be the most desirable sportlifestyle brand in the world.

PUMA AG announces its consolidated financial results for the 3rd Quarter and First Nine Months of 2006

Highlights Q3

• Consolidated sales up more than 32%
• Gross profit margin on a high level at above 50%
• EBIT margin ahead of expectations at 17.6%
• EPS at €5.41 versus €5.70

Highlights First Nine Months

• Global brand sales increase 15%
• Consolidated sales up 32%
• Gross profit margin remains above 51%
• EBIT at €325 million or 17% on sales
• EPS at €14.36 compared to €15.02

Outlook

• Orders above € 1 billion, up 26%
• Management confirms full-year guidance with EBIT around €360 million

Sales and Earnings Development

Global branded sales up double digits

PUMA’s branded sales, which include consolidated sales and licensee sales, increased 13.7% currency neutral or 12.5% in Euro terms reaching €786 million during Q3.
For the first nine months, branded sales were up 14.0% or 14.7% respectively, totaling €2,142 million. Footwear sales increased 12.2% (currency adjusted 11.5%) to €1,209 million, Apparel rose by 18.5% (17.7%) to €742 million and Accessories improved by 17.2% (16.5%) to €191 million.

Consolidated sales up 32% in Q3 and for the nine months period

In the reporting quarter, consolidated sales were up 32.2% currency neutral and by 30.3% in Euro currency, reaching €699 million. By segments, Footwear increased 19.8% (currency adjusted 21.5%) to €420 million, Apparel improved 57.5% (58.5%) to €235 million and Accessories were up 21.3% (23.9%) to €45 million.

Sales for the first nine months grew by 31.7% like-for-like and 32.2% in Euro terms, totaling €1,889 million versus €1,428 million last year. Organic growth contributed 12.8% and new consolidations 19.4% to the overall performance. By segments, Footwear was up 20.2% (currency adjusted 19.6%) to €1,147 million, Apparel increased 65.7% (65.1%) to €618 million and Accessories improved by 21.9% (22.8%), totaling €124 million.

Licensed business

On a comparable base, the licensed business increased by 3.2% in Q3, and 12.8% after nine months. Due to the take-backs of several license markets, total actual licensed sales declined from €162 million to €87 million and from €439 million to €254 million respectively. Based on the remaining licensed business, royalty and commission income was €9 million in Q3 and €25 million after nine months.

Gross profit margin remains on a high level

Gross profit margin reached 50.4% in Q3 compared to 52.1% last year and remained at 51.4% on a high level after nine months. This development is mainly influenced by regional and product mix and was in line or slightly better than expected. Footwear margin declined from 53.1% to 51.2% and Apparel from 52.6% to 51.2%. Accessories improved from 51.5% to 54%.

SG&A expenses impacted by strong brand investments

Due to the strong brand investments and the regional expansion total SG&A expenses increased in Q3 by 44.7% and 48% after nine months and totaling €228 million or €644 million respectively. As a percentage of sales, the cost ratio increased as expected from 29.4% to 32.6% during Q3 and from 30.5% to 34.1% for the first nine months.

For the nine-month period, Marketing/Retail expenses were up from 13.9% to 16.6% on sales, totaling €313 million compared with €198 million last year. In particular, the marketing campaign for the World Cup, other marketing and retail initiatives as well as the license take-back program contributed to the increase. Product development and design expenses increased 34.9% to €40 million and were flat as a percentage of sales. Other selling, general and administrative expenses were up 40.3% to €292 million and increased as a percentage of sales from 14.6% to 15.5%. The increase in other SG&A expenses is related to the extended infrastructure and operations for Phase IV expansion and is in line with expectations.

EBIT margin above 17% and better than expected

EBIT margin reported strong 17.6% in Q3 and 17.2% year-to-date. In absolute terms, operating profit amounts to €123 million versus €129 million and to €325 million versus €343 million respectively, representing a decline of only 5%. Taking into account the full-year guidance of a high single-digit decline given the high brand investment, the year-to-date EBIT came out better than expected.

In Q3, the company reported an interest result of €2.1 million and €6.1 million year-to-date. Hence, pre-tax profit declined only 4.8% to €125 million and 4.9% to €331 million respectively. The tax ratio remained at 29%. As a result, net earnings were €87 million versus €92 million in Q3 and €230 million versus €242 million after nine months. This translates into a net yield of 12.5% compared to 17.1% in last year’s quarter, and 12.2% compared to 16.9% year-to-date. Once again, profitability was better than initially expected.

Earnings per share

Earnings per share in Q3 were €5.41 compared to €5.70. Year-to-date earnings per share totaled to €14.36 versus €15.02 last year. Diluted EPS translated to €5.39 and €14.27 respectively.

Net Assets and Financial Position

Strong equity ratio

Total assets grew by 32.1% to €1,713 million mainly due to the regional expansion. As a result, the equity ratio slightly declined but remained on a strong level at 60.8%.

Working capital

Inventories grew 58.8%, reaching €338 million and receivables were up 28.6% to €502 million. Total working capital at the end of September totaled €506 million compared to €300 million last year. The increase was mainly due to the regional expansion. Excluding the regional expansion, inventories increased 27.9% and receivables only 3%. Like-for-like, working capital was up 35.6%.

Capex/Cashflow

Capex increased from €51 million to €125 million and in line with expectations, of which €74 million is related to acquisitions. Free cashflow amounts to €-56 million, a decline from a total of €85 million last year. This is mainly due to the investments for acquisitions and further working capital needs in the newly consolidated countries.

Cash position

Total cash at the end of September was €404 versus €437 million last year. Bank debts grew from €34 million to €67 million. As a result, the net cash position declined from €403 million to €337 million year over year, which is due to the aforementioned investments and working capital needs.

Share Buyback

PUMA continued its share buy back program in Q3 and added 50,000 shares to the treasury stock, which corresponded to an investment of €13 million. At the end of September, the company held a total of 1,090,000 shares for an investment of €217 million. This represents 6.4% of stock capital.

Regional Development

Change in regional mix continues

Due to the license take-backs, the regional mix changed as expected resulting in a more balanced business portfolio. EMEA now accounts for 51.8% (last year 66.1%), Americas for 29.1% (23.8%) and Asia/Pacific for 19.1% (10.1%).

The EMEA region reported sales of €378 million in Q3, a strong growth of 9.4% versus last year. Year-to-date, sales increased 3.7% and totaled €978 million. The gross profit margin reached 54.2% compared to 54.9% last year. The order book at the end of September was up almost 3% currency neutral or 1.6% in Euro terms and amounted to €518 million compared with €510 million.

Sales in the Americas reached €195 million in Q3, a currency neutral growth of 45.7% or 42.3% in Euro terms. After nine months, sales were up 57.7% like-for like (61.5% in Euro terms) and totaled €549 million. The gross profit margin decreased from 47.7% to 46.8%. Future orders stand at €284 million, a currency neutral growth of 29.7% or 26% in Euro terms. In the US market sales increased 23.1% in Q3 and strong 41.8% year-to-date. Due to a high base effect resulting from the particularly strong order growth in Q3 last year (+78%), future orders for the US were only slightly above last years level at $245 million.

In the Asia/Pacific region sales improved 145.6% currency neutral and 134.9% in Euro terms to €126 million in Q3 and by 155.5% or 149.7% respectively to €361 million year to date. The regional expansion in particular contributed to the overall sales performance. Due to the new consolidation in this region, the gross profit margin was down 120 basis points and reached 50.6%. As of September, the order book was up 135.6% currency neutral and 127.5% in Euro terms and totaled €222 million.

Board of Management

Martin Gänsler informed the Supervisory Board that he is not planning to extend his current contract beyond 2007 as he is planning to retire from his duties after that. He will be actively involved with the search of his successor, who will be announced at a later date. Over his 25 year career with PUMA, Gänsler has been serving as Member of the Board since 1993 and since 1998 as Vice Chairman, overseeing Research, Development and Design, and Sourcing.

Outlook 2006

Future orders up almost 26%

Total orders on hand as of September increased by 25.5% currency neutral or 22.9% in Euro terms, reaching at €1,024 million the 43rd consecutive quarter of order increase. The orders are mainly for deliveries scheduled for Q4 2006 as well as Q1 2007.

In terms of product segments, Footwear increased 12.8% (currency adjusted 15.6%) to €668 million, Apparel 53.8% (55.3%) to €297 million and Accessories 23.1% (28.7%) to €58 million.

Management confirms full-year guidance
The 4th quarter is expected to generate continued strong top-line growth. Hence, management confirms the full-year guidance, which was already upgraded earlier this year with a currency adjusted sales growth of up to 35%.

The full-year gross profit margin should range at the higher end of the given range between 50% and 51%. Based on the final top-line, selling, general and administrative expenses should rise as expected to or slightly above 35% of sales.

Due to the ongoing brand investments for the remaining of the year, profit in Q4 is expected to decline double digits versus last year’s quarter. For the total year, management expects operating profit (EBIT) to reach the earlier given guidance of around €360 million. The tax rate should stay on last year’s level around 29%. As a result, net earnings should post a high single-digit decline versus last year and should therefore significantly exceed the original expectations for 2006 communicated with the Phase IV strategy mid last year.

Jochen Zeitz, CEO: “We are more than pleased with our results for Q3 and through the first nine months of 2006 as we will significantly exceed full-year guidance as part of our original Phase IV plan. Based on these results we remain very confident in our ability to reach all of our Phase IV targets. “

David LaChapelle is a rule-breaking and provocative photographer with a unique visual language. His newly-formed and exciting relationship with PUMA will be celebrated at PUMA’s in-store book signing of his new book “Heaven to Hell” which will take place on Friday, December 1st from 5:30 – 6:30pm.

PUMA and David LaChapelle come together in accordance LaChapelle’s first-ever exhibition at a major German institution. PUMA always works at the forefront of fashion photography with brand campaigns and proudly complements the presence of David LaChapelle in Berlin. The essence of the “Heaven to Hell” book will be showcased in a special exhibition space at PUMA’s Berlin Concept Store in Berlin-Mitte.

A spectacular David LaChapelle designed window display will add to the transformation of the PUMA store. This exciting platform will be accessible to PUMA customers and press alike.

A rare and exclusive opportunity is created by PUMA, David LaChapelle and friends when HEAVEN TO HELL will be sold inside the PUMA store- release date, December 1st 2006. Select meet and greet opportunities will be arranged and a buzz in the creative center of Berlin will be assured in the dedicated PUMA space.

The PUMA LOUNGE at the David LaChapelle event at the Rodeo Club on December 2nd (begins 10:30pm) will showcase a specially-designed artistic print and the best in PUMA’s sport fashion collections. This event with specialty sponsorship by Grey Goose vodka will be the official after-show party following opening night at the Helmut Newton Foundation.

The exhibition opening will be at 7-10pm. The Rodeo Club is located at Auguststrasse 5.

“I am happy that the joint commitment of PUMA and UNITED FOR AFRICA continues with this wonderful Christmas promotion”, says AKON. “With only 10 €, a child in Africa can already go to school for more than six months.”

And Maxi Jazz adds: “To help can be so easy. Buy a watch and do some good by supporting the projects of UNITED FOR AFRICA”.

The donation of 10€ for every PUMA watch (or an approximate equivalent in other currencies) will go directly to UNITED FOR AFRICA. In addition to the proceeds from the PUMA TIME collection, the charity wristband will again be sold in all Concept Stores in Europe and the United States until the end of February 2007 – helping to raise even more funds in aid of this charity project. All articles that will be sold in aid of the joint cooperation will clearly display the amount donated to the campaign.

“The announcement of the long-term partnership with the Cameroon Football Association underlines PUMA’s commitment to support African football. Africa will be the center of attention with the African Cup of Nations in 2008 leading up to the 2010 World Cup™ in South Africa”, says Jochen Zeitz, CEO of PUMA AG.

With an Olympic Gold from Sydney 2000, crowned African Champions four times (1984, 1988, 2000 and 2002) and the first ever African team to qualify for the World Cup™ quarterfinal in Italy in 1990, Cameroon is a powerhouse in African football as well as in the World of Football.

With an impressive portfolio of ten PUMA-sponsored African national teams, PUMA is already indisputably the most visible football brand in Africa.

Consolidated sales up 43%

Highlights Q4

• Consolidated sales up 43%
• Gross profit margin at 48%
• Operating profit better than expected
• EPS at € 2.03 versus € 2.76

Highlights January – December

• Global brand sales at record € 2.8 billion
• Consolidated sales up 34% reaching almost € 2.4 billion
• Gross profit margin still on a high level at almost 51%
• EBIT margin at 15.5% better than expected
• EPS at € 16.39 compared to € 17.79

Outlook 2007

• Orders up 10% reaching more than € 1.1 billion
• Management expects new record-high for sales and earnings

PUMA continued its success story in the 2006 financial year, and finished the first year of Phase IV of its long-term corporate development better than expected. Overall, the previous financial year saw the integration of seven license markets into the PUMA Group – Japan (Apparel), Taiwan China, Hong Kong, China, Argentina, Mexico and Canada – and three of the announced seven new product categories have already been launched successfully.

Worldwide brand sales climbed by over 16% to € 2.8 billion in financial year 2006. Consolidated sales jumped over the 2 billion hurdle for the first time, growing currency adjusted by 34% to just under € 2.4 billion. At 50.6%, the gross profit margin remained at a very high level. Operating profit reached € 366 million and significantly exceeded original expectations. Earnings per share were € 16.39, compared to € 17.79 in the previous year. The PUMA share closed the year at € 295.67, posting another value increase of 20%. Market capitalization was € 4.8 billion.

Highlights Q4

In Q4, consolidated sales increased currency neutral 43.3% to € 480.6 million. Footwear rose by 30.3% to € 273.2 million, Apparel by 79.4% to € 177.4 million and Accessories by 16.9% to € 29.9 million. All regions contributed to the growth: EMEA sales increased 12.8%, America was up by 37.2% and Asia/Pacific significantly by 151.7%. The gross profit margin was at 47.7% 230 basis points below last year as expected. SG&A increased from 36.7% to 39.0% of sales. Pre-tax profit amounts to € 43.3 million versus € 56.5 million in last year’s quarter. Earnings per share were at € 2.03 compared to € 2.76.

Sales and Earnings Development 2006

Global brand sales at record € 2.8 billion

The worldwide PUMA brand sales, comprised of consolidated and license sales, rose significantly by 15.4% to € 2.8 billion. This corresponds to currency adjusted growth of 16.1%. In terms of segments, Footwear sales improved by 14.8% to € 1,512.9 million, Apparel by 18.9% to € 981.9 million and Accessories by 13.5% to € 260.3 million.

Consolidated sales up 34%

PUMA succeeded in significantly increasing its annual consolidated sales for the twelfth consecutive year, and for the first time in its company history exceeded the 2-billion mark. Sales rose currency neutral by 34.0% to a new record of € 2,369.2 million. Excluding new consolidation, currency adjusted sales rose by 12.9%. The Footwear segment posted a 21.6% sales increase to € 1,420.0 million, Apparel contributed to growth with a significant increase of 68.1% to € 795.4 million and Accessories posted an increase of 21.5% to € 153.8 million.

Licensed business

Due to takeovers in a number of license markets which were part of the Phase IV strategy, reported license sales in 2006 decreased to € 385.9 million. On a comparative basis, the remaining license business posted an increase of 16.8%. Overall, royalty and commission income from license sales amounted to € 37.0 million.

Effective expansion of retail operations

Expansion of the Group’s own retailing activities progressed sharply during the 2006 financial year. Overall, the financial year saw the opening of a further twenty-five concept stores. At the year-end, PUMA had ninety-one Concept Stores. Sales from the company’s own retail operations again saw an above-average increase of 39.5% in 2006. Sales grew to € 344.3 million, rising from 13.9% to 14.5% of consolidated sales.

Gross profit margin still on a high level at almost 51%

Changes in the regional and product mix led to a planned reduction of the gross profit margin from 52.3% to 50.6%. Thus, the gross profit margin remains at the upper end of the sporting goods industry. By product segments, the Footwear margin decreased from 52.7% to 50.3% and Apparel from 51.8% to 50.7%. Accessories improved from 50.4% to 53.3%.

Cost structure increases as planned

Total selling, general and administrative expenses rose by 47.6% to € 831.8 million in financial year 2006. The cost ratio increased from 31.7% to 35.1% as planned. This increase is due mainly to higher marketing and retail costs as well as the infrastructure expansion required for implementing Phase IV.

Marketing/Retail expenses increased as planned by 54.3% and stood at € 419.6 million. The cost ratio rose from 15.3% to 17.7% of sales. This increase was due primarily to marketing expenditure for the World Cup, as well as to other marketing and retail expenditures. Product development and design expenses climbed by 35.2% to € 56.7 million, and at 2.4% of sales, remained constant in comparison with the previous year. The remaining SG&A expenses were up by 42.4% to € 355.4 million, or from 14.0% to 15.0% of sales as part of the expansion of the global infrastructure.

Operating profit better than expected

Operating profit (EBIT) reached € 366.2 million after € 397.7 million in the previous year. As a percentage of sales, the operating margin was reduced from 22.4% to 15.5% as planned. The decrease is related to the announced investments in the brand and to the infrastructure strengthening required to achieve the long-term goals of Phase IV. Overall, however, operating profit was significantly above original expectations.

The financial result increased by 21.9% to € 7.9 million and includes interest expense of € 3.1 million for discounted long-term purchase price liabilities (license take-backs). The adjusted interest result yields a rate of return of 3.1% versus previous year’s 1.8%.

Earnings before taxes (EBT) reached € 374.0 million, compared to € 404.1 million in the previous year. Tax expenses were reduced from € 117.2 million to € 108.1 million. At 28.9%, the average tax rate was nearly unchanged compared to the previous year.

Net earnings above € 263 million

At € 263.2 million, net earnings were only 7.9% below the previous year’s level of € 285.8 million, and thus significantly above original expectations. The net return expressed as a percentage of sales was 11.1%, compared to 16.1%. Earnings per share came to € 16.39, compared to € 17.79, and the diluted earnings per share were € 16.31, compared to € 17.68.

Regional Development

Like-for-like, sales in EMEA were up by 5.1% to € 1,158.7 million. Although the difficult economic environment continued in some markets, the region developed better than expected, supported by the World Cup. As planned, due to regional expansion, the EMEA region share in consolidated sales declined from 62.2% to 48.9%. According to product segments, Footwear posted a minor 1.6% decrease, Apparel climbed by 17.4%, and Accessories were up by 7.9%. The gross profit margin was slightly down from 54.3% to 53.8%. The operating margin (EBIT) accounted for 22.0% of sales, after 27.4% in the previous year.

Sales in Americas saw a significant increase to € 724.1 million, which corresponds to a currency neutral growth of 51.8%. Excluding the initial consolidation of Argentina, Canada and Mexico, sales grew by 33.1% on a comparable basis. The share in consolidated sales rose from 26.8% to 30.6 %. Classified by product segment, the strongest growth was posted in Accessories at 61.0%. Footwear was up by 54.3%, and Apparel by 41.8%. Due to the regional expansion and increased key customer business, the gross profit margin decreased from 48.9% to 46.1%. The operating margin was 17.4%, compared to 19.6% in the previous year. The US-market contributed substantially to the overall performance in this region with sales growth of 31.3%. Sales improved significantly from USD 472.4 million to USD 620.2 million.

Asia/Pacific sales reached € 486.5 million; this corresponds to an increase of 154.5% after currency adjustments. Regional expansion in Japan (Apparel), China, Hong Kong, and Taiwan China made a particular contribution to the growth. Excluding initial consolidation, the growth on a comparative basis was 9.3%. Overall, the share of consolidated sales grew from 11.0% to 20.5%. According to product segment, Footwear sales jumped by 58.1%. The strongest growth of 765.4% was achieved in Apparel, due mainly to the initial consolidation of PUMA Apparel Japan. Accessories posted growth of 24.8%.

The gross profit margin increased from 49.5% to 49.8%, and the operating margin climbed to 21.9%, from 21.0% in the previous year.

Net Assets and Financial Position

Strong equity ratio

As of December 31, 2006, the equity ratio reached 61.2% after 66.3% in the previous year. Shareholders’ equity rose by 19.8% from € 875.4 million to € 1,049.0 million, and the balance sheet total climbed by 29.8% from € 1,321.0 million to € 1,714.8 million.

Working capital

Working capital increased by 57.1% to € 401.6 million and accounted for 16.9% of sales, after 14.4% in the previous year. The increase was due mainly to regional and retail expansion. Excluding new consolidation working capital grew by 24.9%. The reason for this growth is due to higher inventories by 26.9% which is mainly related to sourcing related issues, whereby liabilities increased only slightly.

Capex/Cashflow

Capex for own retail operations and current investments totaled € 72.7 million. In addition, investments for acquisitions (license take-backs) amounted to € 81.2 million. These scheduled investments led to a reduction in the free cashflow to € 10.4 million.
Excluding acquisition-related investments, the remaining free cashflow is € 91.6 million or 3.9% of sales.

Dividend

The Board of Management will propose at the Annual Meeting on April 11, 2007 a dividend of € 2.50 per share (previous year: € 2.00 per share) for fiscal year 2006. This would lead to a total profit distribution of € 40.3 million compared to € 31.8 million in the previous year, and an increase in the dividend pay-out ratio from 11.2% to 15.3% relative to net earnings.

Share Buyback

In 2006, PUMA purchased another 230,000 of its own shares for an investment of € 66 million. At year-end, the company held 1,120,000 own shares or 6.5% of subscribed capital as treasury stocks in its balance sheet.

Outlook 2007

Orders volume tops € 1.1 billion

At the 2006 year-end, orders on hand increased for the eleventh consecutive time. Like-for-like, orders rose on a comparative basis by 10.2%, or in Euro by 4.7% to € 1,119.7 million, compared to € 1,069.1 million in the previous year.

In terms of segments, currency adjusted orders for Footwear were up by 6.1% to € 716.8 million, Apparel orders climbed by 20.3% to € 340.2 million, and Accessories rose by 9.0% to € 62.7 million.

Development in the regions as of year-end was as follows: Currency adjusted, orders in EMEA region were up by 6.2% to € 652.7 million, despite last year’s World Cup effect. The Americas region posted currency adjusted growth of 4.6% to € 271.2 million. Orders on hand for the US-market totaled USD 245.8 million, compared to USD 261.9 million in the previous year. The decline in last year’s comparison is mainly due to the higher basis effect and to a planned reduction of sales with a customer. In the Asia/Pacific region, orders increased to € 195.7 million, which corresponds to a currency adjusted increase of 35.8%.

New record year in sales and earnings expected for 2007

As announced with Phase IV of the long term oriented business plan, Management expects new record results in sales and earnings for 2007.

After the strong sales growth of 34% in the past financial year, a currency neutral growth in the medium to higher single-digit range is expected for 2007.

The gross profit margin is expected to move at the previous year’s range of 50% – 51%. Selling, general and administrative expenses, expressed as a percentage of sales, are expected to decrease to approximately 34%. This should lead to an improvement in the EBIT margin to about 16% of sales, and thus to a new record high. Given the unchanged tax rate of approximately 29%, double-digit growth in consolidated net earnings and thus an increase of at least 10% is expected.

Phase IV on track

As a result of initiatives undertaken in 2006, PUMA has a solid global operative base as well as momentum generated by its very successful World Cup year and new category launches. This gives Management a confident outlook for PUMA’s future, both for 2007 and the remainder of Phase IV.

Jochen Zeitz, CEO: “Overall, we are very pleased with 2006 and our start to Phase IV, as we set some ambitious targets and are on track or ahead on all accounts. But more important than the past is the future, and we’ve put ourselves in a solid early position to deliver on our Phase IV objectives.“