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adidas Strengthens Three-Divisional Structure: adidas Sport Style designed by Yohji Yamamoto

Three divisional structure emphasizes adidas’ roots in sports +++ Successful co-operation between adidas and Yamamoto extended to create the future of sportswear

July 11, 2002

Herzogenaurach, July 11, 2002 – adidas-Salomon AG has completed its revolutionary three-divisional structure for its core brand, adidas, and will position its third division as ‘adidas Sport Style – the future in sportswear’. The world-famous Japanese designer Yohji Yamamoto will be the Creative Director of this division. With this move, adidas and Yohji Yamamoto have intensified their relationship with a unique co-operation to explore new dimensions in sportswear. adidas represents sport, Yohji Yamamoto represents design, both symbolize true craftsmanship - together they aim to develop the future of sportswear. The first adidas Sport Style products designed by Yohji Yamamoto and the name of the collection will be presentedin October 2002. The collection will hit retail in Spring/Summer 2003.

adidas’ divisional approach is a fundamental shift from the traditional Footwear and Apparel structure used by most other sporting goods companies and enables adidas to address the needs of its consumers in a more targeted and focused way. The adidas brand will be segmented in three divisions: adidas Sport Performance, adidas Sport Heritage and now introducing adidas Sport Style. With these new names - adidas Sport Performance (previously adidas Forever Sport), adidas Sport Heritage (previously adidas Originals) and adidas Sport Style (previously adidas Equipment) - adidas emphasizes clearly its roots in sports. “adidas has always been a part of sport and always will be. Sport is what brings all our activities and divisions together. The Sport Performance Division will always remain the core of our brand and represent the majority of our sales. But we are passionate about sport in all its forms, from performance to heritage to style,” said Erich Stamminger, Member of the Executive Board of adidas-Salomon AG, responsible for Global Marketing.

adidas Sport Performance features products that are developed for the sports performance market but have design appeal, encouraging consumers to wear the products both on and off the court or playing field. The latest adidas product launches in this division include the Energy Management System a³®, the 360°-ventilation shoes ClimaCool® and the world-famous adidas Predator® football boot used at this year’s FIFA World Cup.

The adidas Sport Heritage Division contains adidas Originals products. Originals products seek to extend the unique and authentic heritage of adidas to the lifestyle market. Design and functionality are already strong.aspxects in the two existing adidas divisions and will be continued with an even stronger focus in the now introduced Sport Style Division.

“Sport Performance focuses on functionality, innovation and design. Sport Heritage showcases the rich history of adidas. By establishing Sport Style, adidas completes its product range and answers the demands of the international fashion-oriented consumer. It was a natural and logical move to bring our already existing very successful co-operation with Yohji Yamamoto to a new level,” Stamminger continued.

adidas Sport Style designed by Yohji Yamamoto combines the mission of the sports brand with the vision of style to develop an unexpected and radical appeal. Yohji Yamamoto: “For me, this is an interesting and exciting new project on many levels: Personally, I felt for a long time that there should be sportswear for my kind of people. Also, I always wanted my clothes to be accessible to… and desired by… a greater number of people, and I feel that it will be possible for me to achieve this through this new line.”

“adidas Sport Style designed by Yohji Yamamoto is an exclusive collection, consisting of men’s and women’s shoes, apparel and accessories.Our distribution policy targets sportswear and fashion retailers in the world’s major fashion metropolises. During the first season the collection will only be available in 100 – 150 selected stores in Europe and selected high-end stores in the US. The second season will see the collection being distributed and communicated to the Asian market,” said Hermann Deininger, Head of adidas Sport Style Division and Strategic Global Business Development.