Renewed Sales Growth Expected for 2005  Zeitz Gänsler Heyd The Board of Management Herzogenaurach, January 24, 2005 Current order development indicates strong growth in the America and Asia regions whereas growth will probably slow down in Europe due to the generally difficult market environment, in particular in the large sporting goods  markets. In all, consolidated sales are  expected to show high single digit growth  (currency-adjusted.)  The US Dollar requirement is hedged against currency fluctuations up to and including 2006. Due to the available hedging rates for 2005, the gross profit margin should move in the 50% to 52% range. Selling, general and administrative expenses will yield a higher cost ratio due to the further expansion of retail operations and associated cost increases, as well as additional personnel expenses owing to the fact that share-based remuneration is  stated at fair value for the first time for FY2005. Total costs should not exceed 31% of sales, however. The license business should also continue to improve,  particularly in Asia, with an increase in royalty and commission income. An operating margin of over 20% is expected, placing PUMA in the upper range within the sporting goods industry.  The tax rate is expected to range between 29% and 30%.  Management is optimistic that further growth in sales can be achieved in 2005 and that earnings will see another record high despite the moderate economic starting position in some  markets. As a result, the original goals set for Phase III of  corporate planning (2002-2006) should be far exceeded in 2005. Therefore, PUMA is planning to finalize this phase of development one year ahead of schedule.  Development and outlook (million €) Gross profit EBT Sales 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 -200 200 600 1,000 1,400 1,800 Foreword | Mission |  Management Report  | Share | Marketing | Consolidated Financial Statements - IFRS - | Report of Supervisory Board | Board of Management 38