About Bob

Bob Kennedy is arguably one of the most well-known and well-respected U.S. distance runners of the modern era. While in college at Indiana University, Bob held several NCAA cross country and long distance titles. His passion for running began in high school where he claimed the title of champion in the 1987 National High School Cross Country race and 1988 National High School Mile. He is an American record holder in multiple events, two-time Olympian, many time NCAA champion, and the only American to break the 13-minute barrier in the 5000 meters. At the age of 35, Kennedy has now retired from his professional running career to take on new horizons in the industry not only with PUMA but also as the co-owner of The Running Company, a running specialty store with three locations in Indianapolis. Bob is known as an aggressive and smart competitor as well as a role model for aspiring athletes. With Olympic experience, American records, a successful business, and 16-month old twins, there is not a lot left for Bob to conquer. However, he does not see it that way.

Bob currently resides in Indianapolis, IN where he lives with his wife Melina and two children Marcus and Sophia.

Accomplishments

• Officially retired from competition January 2006
• American Record Holder at 3000 meters – 7:30.89
• American Record Holder at 5000 meters – 12:58.21
• 1996 Olympian at 5000 meters – 6th place
• 1992 Olympian at 5000 meters – 12th place
• Won 20 Individual Big Ten Championships at Indiana University
• 1992 NCAA Cross Country Champion at Indiana University
• 1991 NCAA One Mile run Champion at Indiana University
• 1990 NCAA 1500 meter run Champion at Indiana University
• 1988 NCAA Cross Country Champion at Indiana University
• 1988 National High School One Mile Run Champion
• 1987 National High School Cross Country Champion
  
  Photo Credits: Conné/ PUMA

PUMA has gained brand visibility throughout 56% of the tournament, making PUMA the most prominent brand in terms of visibility – that being, in 36 out of the 64 games at least one PUMA team was present, equating to 54 hours of on-pitch action.

PUMA was also among the top three brands in terms of player presence on the field, with 18% of all players wearing the most innovative speed proposition product line v1.06, which has received an outstanding response from players and teams alike. Exceptional sell through reports in all markets led to the football performance turnover rising by approximately 40% compared to 2005.

“Not only have we reached, but by far surpassed our goals for our brand at the World Cup. We have significantly strengthened our strong position as one of the worlds leading football brands and made unparalleled impact with our innovative performance products”, comments Jochen Zeitz.

Off the field, PUMA’s activities during the World Cup have been centred in Berlin at their specially created CAFÉ MOSKAU headquarters. The venue has offered public viewing for every match and a showcase of live entertainment ranging from underground music acts to international stars such as AKON and Basement Jaxx who are set to perform on 9 July. Since the start of the tournament the CAFÉ MOSKAU has been noted as the alternative place in Berlin to watch football and described by The “Frankfurter Allgemeine Zeitung” as being the “football cathedral chosen by the in-crowd of Berlin” (FAZ, June 22, 2006).

PUMA’s leading position in African Football has been underlined with the charity campaign with UNITED FOR AFRICA, an organisation that supports over 30 charities and 5000 projects. With a transparent amount of funds directly benefiting the African people, PUMA launched an entire charity collection of clothing and lifestyle products and integrated the charity campaign in all German Concept Stores. The creation of a unique UNITED FOR AFRICA charity tram surprised locals and visitors in Berlin with it’s entertainment and retail offering and cooperation with the GOETHE INSTITUTE which hosted an onboard African film festival.

PUMA’s partnership with German national airline DBA saw a total of 27 aeroplanes prominently display the brand message “WILLKOMMEN ZUM FUSSBALL” and has been clearly visible in the airports of each of the twelve host cities. The Spree river in Berlin hosted the PUMA boat, a floating football pitch and beach bar which, with the hot summer weather has been a huge success among all fans who wanted to view the games outdoors.

WILLKOMMEN ZUM FUSSBALL is the biggest global marketing campaign in the company history with Pelé as the figurehead character of the advertising campaign. Overall, PUMA is highly satisfied with the results achieved at the World Cup.

“We have once again proven that PUMA is deeply embedded in the world of football. We intend to continue this course, starting on Sunday at the final with Italy, and carrying on through the European Cup in 2008 in Austria and Switzerland, both guest hosts being sponsored by PUMA, pushing through until the World Cup 2010 in South Africa where we will once again be the most dominant brand in African Football. With the Italians as one of the top favorite teams we will enter the world cup in South Africa with either a world champion or a runner up”, says Jochen Zeitz.

PUMA previously announced that preparations are already underway for the World Cup 2010 in South Africa. With an impressive portfolio of more than ten PUMA-sponsored African national teams, PUMA is already indisputably the most visible football brand in Africa.

„Italy´s victory is the glorious final of an incredibly successful World Cup for us“, says Jochen Zeitz, PUMA CEO. „We assume, that the football performance turnover rose by approximately 40% compared to 2005”, he comments. The brand visbility at this Word Cup not only strengthened, but cleary expandend PUMAs position as one of the top 3 football brands in the world.
PUMA will now produce new kits with four World Cup Stars, which will be available in PUMA Concept Stores starting next Monday, July 17. Furthermore, PUMA will start an international advertisement campaign, congratulating the Italian team to their World Cup victory. The ads will be printed in high profile newspapers such as the “Financial Times”, “Gazzetta dello Sport”, “Frankfurter Allgemeine Zeitung”, “De Telegraf”, “L´Equpe”, “Neue Zürcher Zeitung” or “The Times”.
„This is a great starting position in terms of the European Cup in 2008 in Austria and Switzerland, both guest hosts being sponsored by PUMA, pushing through until the World Cup 2010 in South Africa where we will once again be the most dominant brand in African Football. With the Italians as one of the top favourite teams we will enter the World Cup in South Africa with a World Champion”, says Jochen Zeitz.

The EURO 2006 will have 1400 athletes from 49 countries participating in the Championships; around 2000 media representatives are accredited to cover the event. 65 000 000 TV spectators are expected to follow the competitions each day, 32 000 will assist at the Championships in the Ullevi stadium. As one of the main sponsors, PUMA will outfit a total of 3000 volunteers during the EURO 2006 week.

“PUMA has been strongly connected with athletics for many years, `Running´ being one of PUMAs core business segments. With our sponsorship, we will further enhance the brand’s visibility in this category and strengthen PUMAs position as one of the leading suppliers in athletics”, Ulf Kinneson, General Manager of PUMA Nordic AB.

Being one of the most attractive and biggest sporting events in Scandinavia since the 1995 Athletic World Championships also held in the Gothenburg stadium Ullevi, the EURO 2006 will achieve high brand visibility for PUMA. The sponsorship is part of an extensive marketing campaign which includes advertising and communication measures, as well as a wide array of entertainment activities. Furthermore, PUMA has launched a special EURO 2006 collection in the Swedish national colours yellow and blue.

PUMA and the Swedish Athletics Association intend to further strengthen their cooperation with the shared claim “Go Sweden” at this years Championship. “Our goal with Gothenburg is to make it our `own´ Gothenburg, entertaining guests and fans from around the world day and night”, adds Ulf Kinneson. PUMA will therefore focus most of the marketing activities on Gothenburg, the people visiting the city and the Ullevi arena during the EURO 2006 week.

PUMA AG announces its consolidated financial results for the 2nd Quarter and First Half-Year of 2006PUMA AG announces its consolidated financial results for the 2nd Quarter and First Half-Year of 2006

Highlights Q2:

• Outstanding success during World Cup: Not only the most teams but also the World Champion wearing PUMA
• Consolidated sales increase more than 38%
• Gross profit margin above 51%
• EBIT margin impacted as expected by strong brand investments
• EPS at €3.12 versus €3.64

Highlights First Half-Year:

• Global brand sales reach almost €1.4 billion, up 16%
• Consolidated sales up more than 33%
• Gross profit margin at 52%
• EBIT margin better than expectations at 17%
• EPS at €8.95 compared to €9.32
  
  

Outlook 2006:

• Despite strong sales growth, orders remain on high level, up 35% currency adjusted
• Management confirms full-year guidance with top line growth up to 35% and EBIT level of about €360 million
  
  

Outstanding success during World Cup

For the first time in the company history, a PUMA sponsored national team has won the World Cup Final: The Squadra Azzurri from Italy.
PUMA was the dominant kit supplier at the championships, with a strong portfolio of 12 teams and gained brand visibility throughout 56% of all games on the pitch. PUMA was also among the top three brands in terms of player presence on the field, with 18% of all players wearing the innovative v1.06 product line. PUMA now has a great starting position with regards to the Euro 2008 in Switzerland and Austria, where both host federations are sponsored by PUMA. Looking ahead to the World Cup 2010 in South Africa, PUMA will continue as the dominant brand in African Football and will enter the tournament with Italy as the reigning champion and tournament favourite.

Sales and Earnings Development

Global branded sales up 16% reaching almost €1.4 billion in six months PUMA’s branded sales, which include consolidated sales and licensee sales, reached €620 million during Q2, thus marking a 17.1% (currency adjusted 17.2%) increase over last year.
During the first six months, branded sales grew 16.1% (currency adjusted 14.3%) to €1,356 million. Footwear sales increased 13.9% (12.1%) to €770 million, Apparel improved by 19.2% (18.2%) to €469 million and Accessories rose by 18.9% (18.8%) to €118 million.

Consolidated sales rise more than 38% in Q2 and 33% in first six months

In Q2, consolidated sales grew strong 38.2% (currency adjusted 38.7%) to €547 million. First-time consolidations contributed 22% to the growth. In total, Footwear was up 23.7% (24.3%) to €328 million and Apparel improved by a strong 81.2% (81.5%) to €182 million. Accessories realized a growth of 22.8% (25.3%) to €37 million. Team Sport sales contributed the strongest sales growth with over 40%.
Sales in the first six months rose by 33.3% or 31.3% currency adjusted to €1,189 million. Like-for-like, organic growth contributed a strong 12.9% and new consolidations 20.4% to the overall performance. In total, Footwear increased 20.5% (currency adjusted 18.5%) to €727 million, Apparel improved by 71.2% (69.5%) to €383 million and Accessories by 22.2% (22.1%) to €79 million.

Licensed business

The licensed business increased on a like-for-like basis by 30.9% in Q2, and 18.6% after six months. However, due to the take-backs of six license markets as of the beginning of this year, total licensed sales declined by 45.5% to €73 million and by 39.6% to €167 million respectively. Based on the remaining licensed business, royalty and commission income was €7.3 million in Q2 and €15.8 million for the first half.

Gross profit margin remains on a high level

Due to the planned and implemented shift in regional and product mix, the gross profit margin reached 51.4% in Q2 compared to 53.2% last year. First half gross profit margin reached 51.9% versus 53.3% last year. The Footwear margin decreased from 53.6% to 51.8% and Apparel from 53.4% to 51.8% while Accessories increased from 50.3% to 53.5%.

SG&A expenses impacted by strong brand investments

Due to the strong brand investments and the regional expansion total SG&A expenses increased in Q2 by 54.4% to €211 million and by 49,8% to €416 million during the first six months. As a percentage of sales, the cost ratio increased in line with expectations from 34.5% to 38.6% or from 31.1% to 35% respectively.

For the first half, Marketing/Retail expenses increased by 61.7% and accounted for €207 million or 17.4% of sales versus 14.4% last year, in line with expectations. In particular, the marketing campaign for the World Cup and other marketing and retail expenses led to the increase. Product development and design expenses rose by 40.6% to €27 million and, as a percentage of sales, from 2.1% to 2.3%. Other selling, general and administrative expenses were up 39.5% to €182 million, or from 14.6% to 15.3% as a percentage of sales. The increase in other SG&A expenses is related to the extended infrastructure and operations for Phase IV expansion and in line with expectations.

EBIT above expectation

Due to strong brand investments EBIT in Q2 declined by 15.4% to €69 million and by 5.6% to €201 million after six months. This resulted in an EBIT margin of 12.7% and 16.9% respectively. Taking into account the full-year guidance of a high single-digit decline in EBIT, H1 came out better than expected given the high investments.

With an interest result of €2.1 million in Q2 and €4 million for the first half, pre-tax profit decreased by 14.5% to €71 million and by 4.9% to €205 million respectively. During the first six months, tax rate remained at 29% on last years level.
As a result, net earnings were down by 14.9% to €50 million in Q2 and by 4.4% to €143 million in the first half. Net margin was calculated at 9.2% (last year 14.9%) for Q2 and at 12% (16.8%) for the first six months.

Earnings per share

Earnings per share in Q2 reached €3.12, a decrease of 14.3% versus last year. Year-to-date earnings per share were down by only 4% to €8.95, better than expected. Diluted EPS translates to €3.03 and €8.81 respectively.

“Even though I stay in shape, I am an actor and not an athlete – but I was fascinated by the idea,” says Bond-movie-actor Clemens Schick. “It does take a certain amount of adventure spirit for a city boy like me to just go running up a mountain like that but I’m looking forward to the challenge.”

Karsten Schellenberg, the personal fitness trainer who has been preparing Schick for the run for five weeks is confident of success: “Due to his demanding roles as an actor, Clemens is obviously in good shape. Nonetheless this is a tough run and you need to train hard to be able to reach the top but Clemens loved the idea, worked hard for it and had the best product at his disposal”.

The expert trail run challenges participants with a distance of over 230 km and 14,000 meters of altitude and demands a lot of both product and runner. Over the span of eight days, runners not only enjoy the beauty of alpine pastures and woodland paths but also face the challenges of the Tyrolean Alps’ steep gravel trails and icy mountain ridges. As the running teams strive to the top, sudden climate and profile changes demand runners to stay focused at all times and commands the utmost flexibility of both man and material.

As official supplier of the GORE TEXTM Transalpine-Run 2006, PUMA chooses this extraordinary backdrop to demonstrate its point of difference in Running. Balancing the excellence of the performance of its Complete Running products with its lifestyle approach to running, PUMA sends celebrity duo Schellenberg and Schick out to conquer the last relay of a race that starts where the common paths end. Almost 2000 meters of altitude and a distance of close to 29 kilometers is what the duo will face on 9th of September from Schlanders to Latsch in Italy.

„In the past seven years, since the launch of the Dow Jones Sustainability Indexes, sustainable investing has been recognized by a growing number of investors and is increasingly seen as an important driver of long-term performance. We are delighted to support this momentum by calculation an expanding family of professional and objective sustainability benchmarks that are utilized around the globe”, said Michael A. Petronella, president, Dow Jones Indexes/Ventures.

Jochen Zeitz, CEO of PUMA AG: “We are very pleased that PUMA has made it into the Dow Jones Sustainability Index, which not only acknowledges our involvement for sustainability, but also clearly affirms that we are on the right path with our transparency approach and our responsibility in the social and environmental field.”

The S.A.F.E. concept (Social Accountability and Fundamental Environmental Standards) is a specific tool PUMA developed to continuously improve social and environmental standards in all contractors and subcontractors factories as well as to fully implement the Code of PUMA Conduct established in 1993. PUMA is a gradual member of the FLA (Fair Labour Association) since 2004 and has been listed in the Financial Times Stock Exchange FTSE4Good since 2005.

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.