adidas-Salomon CEO marks one year for Emerging Markets headquarters and announces new plans for 2005

Announcing aggressive retail expansion in 2005, as well as key sponsorships and exciting new product launches, Mr Hainer and Mr Ralph Kotterer, Head of adidas-Salomon Emerging Markets, announced a landmark year for the Dubai-based operations which covers a huge expanse from the Middle East to Russia, Greece, Turkey, Africa and South Africa.

Mr Hainer said:"Last week, I told analysts and investors at our Investor Day in Herzogenaurach, that we have spent an enormous amount of energy making adidas-Salomon better, strengthening our brands and optimizing our finances. So today we are positioned to move to another level of performance and profitability. I want adidas-Salomon to be the leading portfolio of sports brands in the world - and that means leading in terms of products, marketing, our supply chain and financial performance. Financially, the first half of 2004 was the best in the company's history." (please see adidas financial results overleaf)

Signaling adidas' strength and commitment to the region, Mr Kotterer said:" The Middle East is a key growth market, with adidas-Salomon Emerging Markets exceeding over 20% performance in the past year which is a significant result for both the company and our brand presence in the region."

"We are excited about the developments in retail taking place in Dubai and will be present with our flagship adidas brandstores in new projects such as the Mall of the Emirates, Dubai Land, and Festival City. In December 2004, adidas will open its first Factory Outlet store in Sharjah. This 1000m2 store will combine 750m2 of the successful retail concept of 'Factory Outlet' and as well as 250m2 dedicated to showcasing the latest technologies and products adidas offers in the region.

adidas-Salomon Emerging Markets will continue to work closely with global retailers such as Athlete's Foot, Go Sports and Decathlon - partners who are continuing to strengthen their presence in the market and will ensure further consolidation. Since opening its headquarters in Dubai, adidas-Salomon Emerging Markets has successfully installed more than 15 shop-in-shop concepts together with well established multi-brand sporting goods retail partners in the region.

In the past year, five adidas brand stores owned and operated by dedicated franchisees in the UAE, Oman, Kuwait, Qatar and Saudi Arabia have been opened in 2003/04.

Products launched during 2003/04 include: ClimaCool II; a³, TMAC3, the Roteiro football, adidas Heritage range and David Beckham's signature Predator football boot.

adidas has also been the brand behind major sporting events since establishing their Headquarters in the region, including the FIFA Youth World Cup in 2003, the annual ATP/WTA Dubai Tennis Championships and the Dubai Marathon in 2004.

"The global campaign, 'Impossible is Nothing', also created widespread attention in 2004, bringing to life the attitude adidas shares with athletes around the world -- the desire to push your self further, to surpass limits, and to break new ground," Mr Kotterer said.

In 2005, adidas will again support the Dubai Marathon and the 2005 ATP / WTA Dubai Tennis Championships.

Middle East consumers can look forward to 2005 as year which will bring successful Global cooperations such as the RESPECT ME partnership with Missy Elliott as well as the recently launched and already acclaimed women's range 'adidas by Stella McCartney' to stores in the Region. In 2005 the adidas 1, the most advanced shoe ever made will also become available in stores.

In the sporting arena, 2005 will also be the year that will lead up to the 2006 FIFA World Cup Germany™ - the world's greatest sporting event and an event which adidas is proud to be involved in as Official Sponsor.

adidas-Salomon Emerging Markets is proud of its achievements since moving to Dubai and looks forward to another year of further strengthening it's presence across the Middle East.