Some of PUMA’s achievements in 2004 with which I am most pleased  are the ones you rarely, if ever, hear about: The transformations in our  organization and operations creating the framework that will enable PUMA to handle tomorrow’s demands. Over the past year we continued to focus on our distribution strategy, finding ways to improve even further an  already sophisticated and successful system. We also made significant  organizational changes in order to streamline our product development  process. And we introduced a new global supply chain information  technology system that allows us to substantially improve our  speed-to-market and inventory management. In other words, we have taken advantage of our momentum to make the necessary improvements to provide PUMA with a rock-solid foundation for future growth. Of course, it is a testament to our outstanding team that it has taken these steps while seamlessly managing our development over the past several years – no small feat. Though steeped in history, PUMA is a place where retrospection of this sort is rare and brief. Instead, we continue to look ahead with excitement about our many opportunities to further develop our brand and organization – while always being aware of the risks involved. We have significant untapped potential in the world’s largest sportswear market – the United States. The rise of a more expressive and aspirational consumer culture in emerging Asian markets leaves us optimistic about our long-term growth prospects in the region. And our apparel and accessories products are  just beginning to establish the same strong point-of-difference that enabled our footwear to reinvent the category. But perhaps above all, we are optimistic because Sportlifestyle has proven to not merely be sustainable, but in fact to be a rapidly evolving integral  part of a global culture. Increasingly, consumers are regarding sport as  something deeper than competition or hero-worship, and more as a  philosophy or lifestyle that has a direct connection to their personal values, aesthetics and aspirations. And PUMA is well positioned to continue  leadership of this expanding segment. It is clear that the future still holds considerable opportunity for PUMA as a strong global brand in the international market. But our success is far from assured. After all, our end objective is simply stated but difficultly achieved: We aim to outperform the industry, not just today but also in the long run. And our industry is highly competitive with new challenges constantly  arising from competitors and the market itself. Our results have given us excellent strategic flexibility as we progress towards the completion of Phase III and in preparation of Phase IV of the company’s developement plan. Best regards, jae Jen Jochen Zeitz 07