adidas Group accelerates restructuring initiatives

* Continued drive to get closer to the consumer
* New organisational structure takes out one level of management
* Focus on key markets and global retail
* Annual cost savings of more than ¤ 100 million targeted

After an eight-year period of continued expansion and double-digit
earnings growth, the adidas Group has decided to create a new
organisational structure to set the foundation for sustainable
long-term growth. This realignment of the business will speed up the
Group's efforts to successfully navigate the challenging market
environment and to emerge from the current economic downturn even
stronger than before.
"Following many months of preparation, including the implementation
of a joint operating model for adidas and Reebok in virtually all
regions around the world, we are now in a position to make a
game-changing structural refinement to our business," said Herbert
Hainer, CEO and Chairman of adidas Group. "All initiatives we have
taken or which we are now implementing are built and executed under
one guiding principle: to bring the adidas Group's brands and
products closer to the consumer. The current economic climate adds
urgency to accelerate our plans."
Over the last seven months, the adidas Group has implemented a series
of reviews throughout Group and brand functions. This strategic
review focused on identifying and supporting key business
opportunities while eliminating costs that do not contribute to the
immediate business success. A key pillar of this review included a
full analysis of Group structures in order to adapt them to become
faster, more effective and more flexible.
Steps taken thus far include:

* Implementing a Joint Operating Model between adidas and Reebok in
Europe and in Latin America following the successful roll-out in
Asia. This Joint Operating Model is now in place in nearly all of
the Group's major markets. Within this new organisational
structure, both the adidas and the Reebok brand remain separate
and distinct while leveraging the Group's strength with its
customers and in all back-office functions.
* Employee reductions at Reebok, Rockport and TaylorMade-adidas
Golf.
* Reducing complexity of the product creation process for both
adidas and Reebok.
* Integrating Ashworth swiftly into the TaylorMade-adidas Golf
organisation.

While these initiatives have either been completed or are currently
being implemented, the drive for effectiveness and efficiency for a
sustainable, healthy business continues. Since 2000, the adidas Group
has grown significantly in complexity from 95 companies to 190
represented in all regions of the world. During that period its
business has evolved from predominantly wholesale to include a far
more significant retail component. With over ¤ 1.8 billion in
own-retail sales in 2008, the adidas Group is on a growth path that
will make it one of the top 250 global retailers in the medium term.
As a result, Management began an intensive examination of the Group's
businesses in 2008, which will lead to the following organisational
changes over the coming months:

* As a consequence of the increased complexity, it has been decided
to take out one complete level of management - the regional
office. This means that, going forward, the Group will no longer
operate regional headquarters in Europe and Asia. Instead, it
will strengthen the direct interaction between the global
organisation and the local markets. This new set-up will not only
significantly increase speed-to-market, but also ensure a
holistic market approach to a global community that is widely
connected by means of modern communications technologies.
* To support the growing own-retail business, which is an integral
part of the Group's controlled space strategy, a dedicated Global
Retail organisation will be set up under the leadership of a
Chief Retail Officer. The Group will also carry out a review of
underperforming retail store locations in the coming months.
* The wholesale part of the business, where products are sold and
distributed via retail partners, will also be consolidated under
the leadership of a Chief Sales Officer.
* All Group functions such as Operations, Finance, HR, Legal and IT
will also undergo changes to reflect the new organisational
structure while identifying shared service opportunities to drive
further efficiencies.

Together with the aforementioned initiatives already underway, the
Group anticipates that these further steps will not only serve to
accelerate revenue growth opportunities for the Group, but in the
process will also deliver material and sustainable cost savings,
ensuring a healthy company and solid business foundation for the good
of all its stakeholders. Although all project details have yet to be
finalised, it is Management's goal that upon completion these
measures will lead to annual cost savings of more than ¤ 100 million
as well as a significant contribution to the top line. Additional
details will be provided later this year.
Herbert Hainer, CEO and Chairman of adidas Group, added: "Our Group
has seen fantastic growth over the last eight years. Now, we have to
look forward and prepare our company to achieve the next level of
success mid- and long-term. Our new set-up takes into consideration
recent, current and future market developments and focuses our
organisation more squarely on our most valued stakeholder: the
consumer. In doing so, we make sure that our Group navigates
successfully through the challenging market conditions we face in
2009, positioning us to accelerate profitable growth once the global
economy rebounds."

***

Contacts:

Media Relations Investor
Relations
Jan Runau John-Paul O'Meara
Chief Corporate Communications Officer Head of Investor
Relations
Tel.: +49 (0) 9132 Tel.: +49 (0)
84-3830 9132 84-2751

Kirsten Keck Dennis Weber
Corporate PR Manager Investor
Relations Manager
Tel.: +49 (0) 9132 84-6207 Tel.: +49 (0)
9132 84-4989

Katja Schreiber
Corporate PR Manager
Tel.: +49 (0) 9132 84-3810

Please visit our corporate website: www.adidas-Group.com

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