François-Henri Pinault, Chairman and CEO of PPR and Chairman of the Supervisory Board of PUMA:
“We are happy to announce Jochen Zeitz’s appointment to the Executive Committee and the Board of Directors. This step allows the use of the qualitative synergies between the PPR brands and PUMA and therefore further supports the successful collaboration between PUMA and PPR.”

Jochen Zeitz, CEO and Chairman: “I am delighted to have been appointed to the Executive Committee and the Board of Directors of PPR. This step will reinforce PUMA’s position within the PPR Group and the support of PPR’s Executive Committee gives us the possibility to further strengthen our position as one of the most desirable Sportlifestyle companies.”

Jochen Zeitz, CEO and Chairman: “We support the aim of Peace One Day and want to make a contribution to the generation of global peace on one day. Within our commitment, we will develop a special charity football collection, available in 2008. We are delighted to be a strong and long-term partner of this exemplary initiative.”

PUMA has a proven track record in fundraising initiatives such as supporting the United for Africa charity during the World Cup. Peace One Day is another important charity organization that PUMA can help by offering its expertise in Sportlifestyle and creating desirable products to benefit the cause.

On September 21st, 2007 PUMA will announce plans for its Peace One Day football collection, which will be unveiled at the African Cup of Nations in January 2008. PUMA’s already established relationships with its African football teams ensures this exciting football collection will be seen on some of Africa’s leading players throughout the tournament – during which a key part of shooting the second Peace One Day documentary takes place. An exclusive press screening of the first award-winning documentary will be organized by PUMA prior to the Royal Albert Hall event.

The PUMA Peace One Day collection consists of a specific designed Peace One Day football and accessories and will be sold world wide beginning in May 2008 – with the goal that all products related to this fundraising will ultimately be sourced and manufactured in Africa .

Peace One Day founder Jeremy Gilley states, “One thing I’ve learned is that football and other sports have the potential to bring people and communities together in a fun and meaningful way. With the help of Puma we will take the message of Peace Day to hundreds of millions of people over the coming years. Through One Day, One Goal we will work to create football matches in every country of the world on 21 September.”

Stefano Caroti previously held a number of senior executive positions at Nike in Sales, Product, Marketing and General Management. Most recently, Stefano was Vice President for EMEA Commerce at Nike’s European headquarters in the Netherlands, where he was responsible for the entire wholesale and retail business in the EMEA region, managing a Euro 4 billion business. Stefano Caroti is Italian, married and has two children. He graduated at Middlebury College in Vermont, USA und started his career in the sporting goods industry in 1985 in Germany.

In addition, as of January 1st, 2008 Antonio Bertone (35), currently Group Functional Director Brand and Marketing at PUMA, will be appointed as Chief Marketing Officer (CMO) and Reiner Seiz (44), currently General Manager Global Sourcing and Logistics at PUMA, will be appointed as Chief Supply Chain Officer (CSO). In their new positions as Deputy Members of the Board of Management both of them will continue to be in charge of their current responsibilities.

Antonio Bertone started working for PUMA’s product and marketing departments in 1994, and since then has become instrumental in the repositioning of the PUMA brand. His creative vision resulted in the introduction of many of PUMA’s Sportlifestyle collections. Today, Antonio Bertone oversees PUMA’s global brand and marketing initiatives.

Reiner Seiz joined PUMA in 1989 in the design and development department and took over his first sourcing assignments in 1993. Today Reiner Seiz is responsible for leading the PUMA World Cat sourcing organizations and with his excellent knowledge of the global sourcing market he managed to build a global sourcing structure and a network of suppliers.

Jochen Zeitz, Chairman and CEO: “We are delighted to welcome Stefano Caroti to the PUMA team. Stefano brings excellent international sales know-how and strong management skills to take on this newly created function as CCO within the Board of Management. With the announcement of Antonio Bertone and Reiner Seiz as Deputy Members of the Board of Management, two additional key functional areas are now well-represented in PUMA’s top management team and will therefore support and strengthen the PUMA brand and company. All three will strongly contribute in supporting PUMA’s global expansion strategy.”

Stefano Caroti, future member of the Board of Management: “I very much look forward to my appointment as Member of the Board of Management and will put in a lot of effort and investment into the new position to capitalize the major opportunities in front of us. I am excited to be working with the PUMA team and contribute to the continued growth of PUMA.”

With this expansion PUMA has successfully completed the re-organization of the Board of Management as part of PUMA’s Phase IV strategy under the leadership of the Chairman and CEO Jochen Zeitz. The current function of the PUMA Group Executive Committee will be terminated.

In addition Melody Harris-Jensbach (46) has been appointed as Deputy CEO of PUMA AG. As a member of the PUMA Board of Management she will take on the responsibility for the areas Product, Product development, Design, Business Unit Management and Worldwide Sourcing for the PUMA Retail Business from January 1st, 2008 and take over the position as Deputy CEO of Martin Gaensler.

Jochen Zeitz was appointed as Chairman and CEO of PUMA AG in 1993 and since then has lead the company through the different phases of the company development: Following Phase I of the restructuring of the company (1993-1997), Phase II with investments into the brand was introduced (1998-2001), followed by Phase III referred to as Momentum (2002-2005). In 2006 Phase IV characterized by company expansion was introduced.

On a total of 84 pages, PUMA presents its extensive activities in the area of social standards, environment protection and restricted substances. The Sportlifestyle company clearly outlines the continuous improvement of S.A.F.E. (Social Accountability and Fundamental Environmental Standards)-activities. Their aim is not only to generate fair working conditions, protect the environment and manufacture ecologically compatible products. An active dialog with different stakeholders (and pressure groups) is also of great importance to PUMA.

TÜV Rheinland certifies that “PUMA has developed a significant and operational management system for environmental and social aspects.” Results of the examination confirm that the Sportlifestyle company successfully implemented the “Code of Conduct”, the “Code of Ethics” and the “Handbook for Environmental Issues”. Those guidelines are generally binding, not only for all PUMA headquarters but also for the 369 independent suppliers and manufacturers named in the report.

The independent environmental organization Greenpeace confirms that PUMA’s commitment sets standards. Greenpeace has checked different companies regarding eco friendliness of their products, ranking them from red to green. After examination of PUMA’s product range, the Sportlifestyle company has obtained the best category “green”. Fair Labor Organization (FLA) is in agreement with this positive appraisal: PUMA has been accredited this year as full member for the first time. FLA is a non-profit organization dedicated to improve working and production conditions. As accredited member, the Sportlifestyle company thoroughly supports the strict guidelines and unannounced audits by FLA.

Jochen Zeitz, CEO and Chairman, PUMA AG: “We are pleased that PUMA’s social and ecological commitment has been recognized not only by analysts and experts, but also by independent organizations such as TÜV Rheinland and Greenpeace. Through responsible and sustainable corporate governance, we want to ensure that our aim to be the most desirable Sportlifestyle company is not only oriented towards economical, but also towards social and environmental criteria.”

In the course of its transparent ecological and social policy, PUMA’s social audits have been seen off by a journalist for the first time, describing his experiences in the Sustainability Report. Bernhard Bartsch, Asia-correspondent for German newspaper Berliner Zeitung and magazine brand eins, characterizes visits of suppliers in Turkey, Vietnam and China. He portrays how PUMA auditors inspect the realization of safety regulations in China or compliance of adequate wages in Vietnamese factories.

Corporate social responsibility is getting ever more important in today’s global business community. For many years now PUMA has continuously improved its S.A.F.E. activities to ensure high social and environmental standards along its entire supply chain. In order to maximise transparency in this sector the company publishes sustainability reports.

The Sustainability Report can be downloaded from PUMA’s website: www.about.puma.com

Highlights Q3

• Consolidated sales at € 670 million
• Strong gross profit margin at 53%
• EBIT reached € 124 million, up versus last year
• EPS at € 5.56 versus € 5.41

Highlights First Nine Months

• Global brand sales increase 4% currency adjusted
• Consolidated sales up more than 3% currency adjusted
• Gross profit margin above 52%
•  EBIT at € 320 million, representing 17% of sales
• EPS at € 14.40 compared to € 14.36

Outlook 2007

• Good improvements in orders: up more than 8% currency adjusted
• Management reconfirms sales and earnings guidance for FY 2007

Sales and Earnings Development

Global brand sales increase 4%

In Q3, PUMA’s branded sales, which include consolidated sales and license sales, reported € 753.4 million, a slight decline of 0.6% on a currency neutral basis. During the nine months period ending September, global brand sales increased 3.8% to € 2,137.4 million. Like-for-like, Footwear sales increased 1.5% to € 1,177.6 million, Apparel rose by 5.9% to € 759.2 million and Accessories improved by 10.1% to € 200.5 million.

Licensed business up almost 8%

The licensed business decreased slightly in Q3 by 1.1% currency adjusted to € 83.0 million, mainly due to the announced expiration of the Korean license at year-end 2007. Year-to-date, licensed sales increased by 7.7% to € 268.3 million.
Based on the licensed turnover a royalty and commission income of € 7.6 million or € 26.1 million respectively was realized, representing a gross yield of 9.2% on licensed sales in the quarter and 9.7% year-to-date.

Consolidated sales up more than 3%

Due to the early shipments in June (as reported with the Q2 release), consolidated sales were slightly down at 0.5% currency adjusted totaling € 670.4 million in Q3. By segments, Footwear decreased 6.9% to € 376.3 million, Apparel was up 8.7% to € 246.3 million and Accessories improved 10.6% to € 47.8 million.
Sales after nine months were up 3.2% currency adjusted to € 1,869.0 million. In total, Footwear improved 1.0% to € 1,110.7 million, Apparel 6.8% to € 632.6 million and Accessories 6.3% to € 125.7 million.

Gross profit margin above 52%

In Q3, gross profit margin increased by strong 270 basis points reaching 53.0% compared to 50.4% last year. For the nine months period gross profit margin was a favorable 52.5% compared to 51.4%. Footwear margin increased from 51.2% to 52.3%, Apparel margin from 51.2% to 52.5%, and Accessories stood with 53.9% almost flat on last year’s level.

SG&A

In absolute amounts, SG&A expenses were flat in Q3 but increased 1.8% after nine months totaling € 228.1 million and € 656.0 million respectively. As a percentage of sales, the cost ratio increased from 32.6% to 34.0% during Q3 and from 34.1% to 35.1% after nine months.

For the nine months period, marketing/retail expenses increased 0.7% and accounted for € 314.8 million or 16.8% of sales versus € 312.6 million or 16.6% last year. Product development and design expenses grew 8.1% to € 43.0 million representing 2.3% of sales, a slight increase of 20 basis points. Other selling, general and administrative expenses were up 2.2% to € 298.2 million, or from 15.5% to 16.0% of sales.

EBIT at € 320 million

EBIT in Q3 developed stronger than sales leading the EBIT margin up from 17.6% to 18.5%. In absolute terms, EBIT increased 0.6% to € 123.8 million. EBIT accumulated over the nine months period, amounts to € 319.7 million versus € 324.6 million, representing an almost flat operational margin of 17.1%.

Taking into account an interest result of € 3.7 million in Q3 and € 8.5 million after nine months, pre-tax profit was up by 1.8% to € 127.5 million in the quarter and down by 0.8% to € 328.2 million year-to-date. The tax ratio after nine months was 29.0% therefore on last year’ level.

Earnings per share

Net earnings in Q3 reached € 89.1 million versus € 87.1 million and € 230.8 million compared to € 230.3 million after nine months. Hence, the net return improved from 12.5% to 13.3% and from 12.2% to 12.3% respectively.

Earnings per share increased by 2.7% to € 5.56 in Q3. Year-to-date earnings per share totaled to € 14.40 compared to € 14.36. Diluted earnings per share were calculated at € 5.57 (€ 5.39) and € 14.39 (€ 14.27) respectively.

Net Assets and Financial Position

Equity

Total assets grew by 14.2% to € 1,955.1 million as of September 30, 2007. The equity ratio stood at 60.0% compared to 60.8% last year.

The company has not bought back any shares during the last quarter and has currently no treasury stocks on its balance sheet. Hence, share capital consists of 16,027,464 shares end of September. The average number of outstanding shares for the nine months period calculates to 16,027,289.

A resolution adopted by the Annual General Meeting authorizes the company to purchase up to ten percent of the share capital until September 1, 2008.

Working capital

As expected, inventory growth was further reduced and is now up by 8.9% to € 368.2 million versus a growth of 17% end of June. Trade receivables of € 502.0 million are on last year’s level and almost in line with sales development. Total working capital at the end of September improved 2.1% and totaled € 502.2 million compared to € 513.0 million last year.

Capex/Cashflow

Capex was € 61.5 million versus € 124.6 million, of which € 4.9 million versus € 73.8 million is related to acquisitions.
Free Cashflow amounts to € 149.4 million compared to € -56.3 million last year or € 154.3 million versus € 17.4 million excluding acquisition costs and marks a strong improvement versus last years cash generation.

Strong improvement in net cash position

Cash at the end of September increased from € 404.1 million to € 532.5 million. Bank debts grew from € 66.9 million to € 69.3 million. As a result, the net cash position improved strongly from € 337.2 million to € 463.2 million year over year, due to the positive cashflow.

Regional Development

The EMEA region reported sales of € 376.5 million in Q3, a currency adjusted increase of 1.1%. Taking the early shipments of June into account, sales would have been up in mid single digits for the quarter. Year-to-date, sales increased 5.5% and totalled € 1,020.2 million. Gross profit margin year-to-date reached 54.5% compared to 54.2% last year. The order book end of September was up 12.4% to € 580.5 million. This reflects a significant improvement versus existing orders end of June 2007.

Sales in the Americas were down 8.8% currency adjusted reaching € 166.7 million in Q3. During the nine months period sales declined by 4.7% to € 486.4 million, while the gross profit margin improved 290 basis points reaching 49.7%. Orders on hand end of September were down 8.4% to € 237.8 million.
As expected, sales in the US market were down 9.7% in Q3 and 10.1% after nine months. This is caused by a continuous moderating environment in the US mall-based business. However, due to the decline of the key-account ratio the gross profit margin increased significantly by more than 500 basis points. As of September 30, 2007 orders for the US decreased 23.5% to $ 187.5 million, mainly due to the mall-based retailers.

In the Asia/Pacific region, sales improved 7.1% to € 127.2 million in Q3 and by 8.6% to € 362.4 million year-to-date. The gross profit margin reached 50.7% versus 50.6% last year. Orders on hand were up 19.1% and totaled € 247.2 million.

Outlook 2007

Orders up more than 8% currency adjusted

Total orders on hand as of September increased 8.3% currency adjusted totaling € 1,065.5 million and representing significant improvements versus end of June 2007. The orders are mainly for deliveries scheduled for Q4 2007 as well as Q1 2008.
In terms of product segments, Footwear orders are up by 3.2% (currency adjusted) to € 659.7 million, Apparel by 19.6% to € 345.4 million and Accessories by 8.5% to € 60.4 million.

Management reconfirms sales and earnings guidance

Management confirms sales and earnings guidance for FY 2007. In terms of sales, growth is expected to be in the low single-digits on a currency neutral basis. However, gross profit margin should come in better than anticipated but compensated by a higher cost ratio. Hence, EBIT should almost develop in-line with sales providing an EBIT margin nearly on last year’s level. Tax rate is estimated at or around 29%.

Jochen Zeitz, CEO: “Based on the positive momentum in our order backlog, we anticipate a solid finish to 2007 to achieve our full-year guidance.”

The new PUMA headquarters in Herzogenaurach will cover 50,000 square meters and will accommodate approximately 700 employees, with 780 parking spaces also available on location. Completion of the construction is expected for the end of 2009. Related investments in coming years will be around € 50 million.

The three new buildings form a space in the middle, creating the actual Plaza. Alongside a seven-story administration center for the Central European offices, a new Brand Center and a new Concept and Factory Outlet with a restaurant are planned. In the new Brand Center, innovative Sportlifestyle collections will be exhibited in order and presentation space of 10,000 square meters. Moreover, a multimedia hall will accommodate 1,500 people.

Jochen Zeitz, Chairman and CEO, PUMA AG: “PUMA Plaza will not only strengthen our brand visibility, but will also extend our position in Herzogenaurach. The creation of modern office space and attractive working conditions outlines our role as one of the leading employer in the region. Regarding environmental protection, we set standards by the implementation of innovative and renewable energy.”

On the roof of the Outlet center, a photovoltaic generating station of 1,000 square meters is planned. Another 140 square meters of solar modules will be integrated in the window front. Furthermore, the roof of PUMA Plaza will be replanted on a surface of 1,500 square meters. Water will partly be heated by solar energy. Presence detectors ensure energy conservation by turning out the light when an employee leaves his workplace. Concrete core temperature control ensures sustainable heating and cooling and is up to the highest ecological standards. The Institute for Energy and Construction (ieg) in Nuremberg issued an energy pass for the new PUMA headquarters.

Besides environmental protection, the next generation of an optimal working environment is vitally important to the Sportlifestyle company. The new headquarters PUMA Plaza is designed in a classy and modern ambiance, perfectly representing PUMA’s philosophy. Via ambient simulation, ample and light-flooded open-plan offices have been conceived, fusing functional design and the highest possible flexibility. Conform to PUMA’s flat hierarchy and decentralized corporate structure; spaces can be modified easily through mobile facilities, according to projects and workgroups.

Jochen Zeitz, Chairman and CEO: “PUMA SPORTS ROMANIA will ensure to strengthen PUMA’ s position as one of the leading Sportlifestyle companies and to capture all current Romanian market opportunities. With our new subsidiary PUMA accelerates its regional expansion and explores the brand potential in the Romanian market in the coming years.”

PUMA SPORTS ROMANIA’s new offices were already opened at Pipera Tunari 1 in Bucharest. The opening of a showroom which permanently displays the latest PUMA Sportlifestyle collections will follow in December. In order to expand its business in the Romanian market, PUMA plans to open further PUMA stores in addition to the one scheduled to open for beginning 2008 in Constanta’s City Park Mall.

Tomislav Coga, General Manager Croatia: “PUMA SPORT HRVATSKA will ensure to maximize the PUMA brand potential on the Croatian market with the aim to become the most desirable Sportlifestyle company.” PUMA’s sportlifestyle products have been sold in Croatia through Tradexco since 2003 and Tradexco will continue to operate the business until PUMA is fully operational in January 2008. Tradexco will remain a valued retail partner for PUMA in Croatia.

PUMA SPORTS HRVATSKA’s new offices will be located at Zitnjak bb in Zagreb, including a showroom which permanently displays the latest PUMA Sportlifestyle collections. PUMA will expand its business in Croatia by opening PUMA Stores and strengthening its cooperation with the existing customers in 2008.

“The fact that 20 of 24 games in the group stage of the African Cup of Nations will feature the PUMA logo is a statement we are proud to make,” says PUMA Chairman and CEO, Jochen Zeitz. “PUMA’s commitment to African football as the leading supplier runs deep, much like the passion that Africa shows for the game of football itself.”

Along with Ghana and Egypt, PUMA’s teams also include talented sides from Angola, Cameroon, Ivory Coast, Morocco, Senegal, Tunisia, as well as African Cup of Nations first-timer Namibia. In fact, seven of the games in the group phase will be between teams wearing the Leaping Cat logo. Each PUMA team will wear PUMA’s new v1.08 products that launch in stores this week with a full collection of performance footwear, apparel and accessories.

In addition, PUMA will activate several activities on the ground during the tournament. Jochen Zeitz and the Peace One Day charity will co-host a youth exhibition game on January 19 in Accra on the eve of the opening game, together with African football legends Roger Milla and Anthony Yeboah. PUMA supports Peace One Day charity through the development of an own football collection, which will be presented at the tournament.

“This is an exciting kick-off for an extraordinary year in sports for the world and for PUMA,” said Zeitz. “We can’t think of a better way to kick it off then with our activities in Africa and the support of PUMA’s national teams at the African Cup of Nations. Then it’s on to EURO 2008™, where PUMA will be worn by the world champions Italy, the host nations – Austria and Switzerland – Czech Republic and EURO-newcomer Poland.”

“Ghana was one of the most inspiring stories of the 2006 World Cup™, capturing the world’s attention with their exciting style of play and passion for the game,” said Zeitz. “PUMA is proud to extend our partnership with them for many years to come and we wish The Black Stars the best of luck during the next three weeks in the African Cup on their home soil.” The Black Stars have been a dominant force on the African continent for the past half century, winning the African Cup of Nations™ four times (1963, 1965, 1978 and 1982) and finishing second on three occasions.

They have previously hosted or co-hosted (with Nigeria) the African Cup on three occasions, winning twice as host in 1963 and 1978. In 2006, the team made its first-ever World Cup appearance, upsetting the Czech Republic and the United States in group play before falling to Brazil in a Round of 16 game in which Ghana controlled the pace of play for much of the first half. “We are proud to be partners with such a global brand that has made a commitment to football in both Ghana and the African continent on the whole,” said Federation President Nyantakyi. “PUMA has delivered on their promises to support us.”

As part of the partnership, PUMA has also helped secure a Mercedes-Benz bus for use by the National Team and will assist in construction of a turf training field for the federation. PUMA will be the Official Supplier of The Black Stars and all its associated teams including the Men’s ‘A’, ‘B’, ‘U21’, ‘U19’ and ‘Youth’ National Teams, as well as Women’s ‘A’, ‘U21’ and ‘Youth’ National Teams beyond the 2014 World Cup™. In 1992, Ghana’s Olympic Team won the bronze medal at the Barcelona Olympics and, last year, Ghana’s Women’s National Team played in the FIFA Women’s World Cup for the third consecutive time.