adidas-Salomon AG and Reebok Close Acquisition

"We are delighted with the closing of the Reebok transaction,which marks a new chapter in the history of our Group," saidadidas-Salomon AG Chairman and CEO Herbert Hainer. "By combining twoof the most respected and well-known brands in the worldwide sportinggoods industry, the new Group will benefit from a more competitiveworldwide platform, well-defined and complementary brand identities, awider range of products, and a stronger presence across teams,athletes, events and leagues."

Leadership and Integration Update

Herbert Hainer is Chairman and CEO of adidas-Salomon AG. With theclose of the transaction, Paul Fireman is stepping down as CEO ofReebok International Ltd. and will serve as an advisor to Mr. Hainer.

"While Paul has chosen to step down as CEO of Reebok, I am verypleased that he has agreed to remain a personal advisor and consultantto me," said Herbert Hainer. "Paul's experience is invaluable to theorganization at this time, and I look forward to continuing to workclosely together."

To ensure that the new adidas Group can quickly and seamlesslyrealize the benefits of this transaction, teams from adidas-Salomon AGand Reebok have worked over the past months to develop an integrationplan that leverages the talents and expertise of both companies. Aspart of this planning, adidas-Salomon AG and Reebok each recentlynamed new brand presidents. As announced on January 9, 2006, ErichStamminger has been appointed President and CEO of the adidas brand,and Paul Harrington has been appointed President and CEO of the Reebokbrand. Mark King will remain President and CEO of TaylorMade-adidasGolf. These roles are consistent with the adidas Group's strategy tomanage each brand separately so as to retain their unique identities.

The strategic direction and brand strategy for the new Group isexpected to be announced in April.

The World of Sports, Herzogenaurach, will remain the globalcorporate headquarters of the new adidas Group. adidas North AmericaInc. will maintain its headquarters in Portland, Oregon, and Reebokwill retain its headquarters in Canton, Massachusetts.TaylorMade-adidas Golf's headquarters will remain in Carlsbad,California.

Strategic and Financial Benefits of the Transaction

The combination of adidas-Salomon AG and Reebok accelerates theadidas Group's strategic intent in the global athletic footwear,apparel and hardware markets. Together, adidas-Salomon AG and Reebokwill offer an enhanced portfolio of global brands, including adidas,Reebok, TaylorMade, Rockport, Greg Norman Collection, MAXFLI, CCM,Jofa and Koho, that truly addresses the needs of today's andtomorrow's consumers. The Group will have more complete productofferings in key sporting categories, extended geographic reach, amore balanced sales profile, and enhanced research and developmentcapabilities.

adidas-Salomon AG anticipates that the transaction will beaccretive to earnings in the 2007 fiscal year. The Group expects torealize substantial operational synergies, including cost savings ofapproximately EUR 125 million (U.S. $150 million) by the third yearafter closing. In addition, the strong operating cash flow of thecombined company will provide financial strength to reduce debt andcontinue funding established growth initiatives.

"Over the years, we at adidas have achieved success by building aconsumer-oriented approach to the market, focusing on profit-drivenperformance metrics, and maintaining a strong commitment tocontinually generating free cash flow. With our transaction complete,these principles will continue to guide us. I am confident that withReebok we can attain even higher performance levels for our companyand our athletes around the world," Herbert Hainer continued.

Transaction Details

Under the terms of the agreement announced on August 3, 2005,Reebok shareholders will receive U.S. $59.00 per share in cash,representing a transaction value of approximately EUR 3.1 billion(U.S. $3.8 billion).

Effective today with the closing of the transaction, trading inReebok's common stock has been halted.

About the adidas Group

The adidas Group is one of the global leaders within the sportinggoods industry and offers a broad range of products with brands suchas adidas, Reebok and TaylorMade in its portfolio. Headquartered inHerzogenaurach, Germany, the new Group has more than 25,000 employeesand sales of around EUR 9.5 billion.

Forward-Looking Statements

The statements, analyses, and other information contained hereinrelating to the proposed merger and anticipated synergies, savings andfinancial and operating performance, including estimates for growth,trends in each of adidas-Salomon's and Reebok's operations andfinancial results, the markets for adidas's and Reebok's products, thefuture development of adidas's and Reebok's businesses, and thecontingencies and uncertainties to which adidas and Reebok may besubject, as well as other statements including words such as"anticipate," "believe," "plan," "estimate," "expect," "intend,""will," "should," "may," and other similar expressions, are"forward-looking statements" under the Private Securities LitigationReform Act of 1995. Such statements are made based upon management'scurrent expectations and beliefs concerning future events and theirpotential effects on the company.

Future events and their effects on adidas and Reebok may not bethose anticipated by management. Actual results may differ materiallyfrom the results anticipated in these forward-looking statements.Risks and uncertainties include, without limitation, the following:international, national and local general economic and marketconditions; unanticipated shifts in consumer preferences in athleticfootwear, apparel and hardware; competition; the ability to maintainadvantageous licenses with our licensors; risks associated with ourinternational sales, distribution and manufacturing; increases in rawmaterial prices; our ability to manage and forecast our growth andinventories; the loss of significant customers and suppliers; theeffect of currency fluctuations; responsiveness to existing and newproducts and distribution channels; the ability to achieve the costsavings and synergies contemplated by the proposed merger; the effectof regulatory conditions, if any, imposed by regulatory agencies; thereaction of Reebok's and adidas's customers and suppliers to thetransaction; the ability to promptly and effectively integrate thebusinesses of Reebok and adidas; diversion of management time onmerger-related issues; and increased exposure to exchange ratefluctuations.

Neither adidas nor Reebok undertakes, and each specificallydisclaims, any obligation to update or revise any forward-lookinginformation, whether as a result of new information, futuredevelopments or otherwise.

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