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adidas-Salomon to Maintain Football Boot Production in Germany

November 10, 2004

Herzogenaurach, November 10, 2004 - The Executive Board of adidas-Salomon AG has decided to maintain the production of football boots in Germany, thereby underlining its commitment to the roots of its production in its home market.

The decision is based on a plan to streamline and increase the efficiency of production in Scheinfeld. In particular, the plan includes measures to further automate series production of the Copa Mundial and World Cup football boots. Production of small-range models and specialized footwear, however, will be discontinued altogether. The made-to-measure production of sports shoes will continue unchanged. This will mean that around 40 jobs at the production facility in Scheinfeld are safeguarded in the long term. As a result of the company's positive development and the related workforce needs, adidas-Salomon will be able to offer alternative jobs at the distribution centers in Scheinfeld and Uffenheim or at corporate headquarters in Herzogenaurach to approximately 60 of the employees currently working in production.

"In conjunction with the FIFA World Cup 2006, we are anticipating record sales in the football category. We are pleased that our series production in Scheinfeld will make an important contribution to this," said Herbert Hainer, Chairman and CEO of adidas-Salomon. "Despite the widely acknowledged cost disadvantages of production in Germany, with this decision we are underlining our commitment to our social responsibility and to the roots of our football boot production in Bavaria."

Over the past years, adidas-Salomon has created more than 100 jobs each year in Germany, altogether 1,200 in the last ten years. adidas-Salomon currently employs 2,541 people in Germany, including 2,069 at corporate headquarters in Herzogenaurach. adidas-Salomon will continue to invest in the location and plans to keep on creating around 100 new jobs in Germany each year. Worldwide, the Group has more than 16,750 employees.