adidas-salomon to Combine with Reebok and Create EUR 9 Billion Footprint in Global Athletic Footwear, Apparel and Hardware Markets

adidas-Salomon AG (FWB:ADS) and Reebok International Ltd.(NYSE:RBK) today announced that their Boards of Directors haveunanimously approved a definitive agreement under which adidas-SalomonAG would acquire all of the outstanding shares of Reebok for U.S.$59.00 per share in cash. The offer price represents a premium of34.2% over the closing price of Reebok's stock on August 2, 2005. Thetransaction value is approximately EUR 3.1 billion (U.S. $3.8 billion)including the assumption of net cash of EUR 69 million (U.S. $84million).

The combination of adidas and Reebok accelerates the adidasGroup's strategic intent in the global athletic footwear, apparel andhardware markets. The new Group will benefit from a more competitiveplatform worldwide, well-defined and complementary brand identities, awider range of products, and an even stronger presence across teams,athletes, events and leagues. The new adidas Group has pro formaaggregate 2004 revenues of EUR 8.9 billion (U.S. $11.1 billion).

"Today's announcement represents a major strategic milestone forour Group," said adidas-Salomon Chairman and CEO Herbert Hainer. "Thisis a once-in-a-lifetime opportunity to combine two of the mostrespected and well-known companies in the worldwide sporting goodsindustry. adidas-Salomon and Reebok are energetic and growingcompanies with a shared commitment to innovation, sport performanceand sport lifestyle. Together, we will expand our geographic reach,particularly in North America, and create a footwear, apparel andhardware offering that addresses a broader spectrum of consumers anddemographics. With Reebok, we are advancing our position on theplaying field of the sporting goods industry and are improving ourfinancial strength to drive increased shareholder value."

"We have long respected Paul Fireman and his team for what theyhave accomplished at Reebok, and we expect them to be an importantpart of our Group as we bring these two world class organizationstogether," Herbert Hainer continued. "We are pleased to welcome themto the adidas family. Their experiences and insights will play acentral role in the continued development of the new Group both inNorth America and internationally."

"adidas is the perfect partner for Reebok," said Paul Fireman,Reebok Chairman and CEO. "With adidas, we are able to offer anenhanced portfolio of global brands that truly addresses the needs oftoday's and tomorrow's consumers. As an aspirational global sportsperformance and lifestyle brand, Reebok's mission is to enroll globalyouth through sports, music and technology. This complements adidas'smission to be the leading sports brand in the world with a focus onperformance and international presence. This transaction provides ourshareholders with good value for their shares and our employees withan opportunity for an even more exciting future. I am thrilled by theopportunity to work with Herbert Hainer and the adidas team in ourendeavour to take both brands to the next level."

Strategic and Financial Benefits of the Transaction

adidas believes that the complementary nature of the twobusinesses in various geographies, products and consumer segmentsprovides a significant opportunity for increased value creation. Thecombination will enable the Group to generate substantial cost savingsas well as incremental revenue and profits from more complete coverageof all consumer segments. Given the solid management teams at bothcompanies, adidas expects to realize the benefits of this transactionquickly and efficiently following the transaction's close.

Strategic

-- Extended geographic reach and more balanced sales profile. Reebok complements adidas's international profile and enhances adidas's strong position in North America. North America represents approximately 50% of the global sporting goods market, and with Reebok, the adidas Group's North American sales will more than double to EUR 3.1 billion (U.S. $3.9 billion). In Europe and Asia, adidas enjoys stronger brand recognition, and has significant marketing expertise and insights. adidas expects to use this expertise to further develop Reebok's global presence.

-- World-class and talented employees. Both adidas-Salomon and Reebok bring an exceptional team of talented and experienced employees to the new group. As a result of this transaction, Group employees will have even more exciting job opportunities.

-- Broader portfolio of world-renowned brands. The combined entity will have a more complete portfolio of brands that caters to a global consumer base. The portfolio will be anchored by two brands with well-defined identities - adidas, a leader in sports performance with a European heritage, and Reebok, an American leader in sports and lifestyle products. With its broad portfolio of brands, including adidas, Reebok, TaylorMade, Rockport, Greg Norman Collection, MAXFLI, CCM, Jofa and Koho, the adidas Group will be able to offer footwear, apparel and hardware products based on cutting-edge technology, trend-setting street wear and classic design.

-- A more complete product offering in key sports categories. The new adidas Group will have a stronger presence in American sports and a complete product offering that addresses key sports categories, including soccer, basketball, running, American football, hockey, tennis, training, outdoor and golf.

-- Stronger presence across teams, athletes, events and leagues. adidas expects that the combined Group's strong presence across teams, athletes, events and leagues will enable it to substantially increase the worldwide visibility of its brands. The Group's endorsement contracts will include many of the world's elite teams, such as Real Madrid, Milan AC, Bayern Munich and Liverpool FC, and athletes, such as David Beckham, Tracy McGrady, Yao Ming and Allen Iverson, as well as high-profile global events, such as the 2006 FIFA World Cup(TM) and the Beijing 2008 Olympics. The Group will also have licensing relationships with the UEFA Champions League(TM), more than twenty National Olympic Committees and five premier sporting leagues - the NFL, NBA, NHL, MLB and MLS.

-- Enhanced R&D capabilities and cutting-edge technology. adidas is an award winning technology leader in the industry with the adidas innovation team having developed cutting-edge technologies, such as adidas_1, the first "intelligent running shoe," ClimaCool(TM) and a3(R). Reebok also has a very talented group of experienced research and development professionals who have developed a distinguished portfolio of breakthrough product innovations, including the Pump 2.0 and DMX.

By harnessing both companies' R&D expertise, the new adidas Groupexpects to accelerate new product introductions in footwear, appareland hardware to help drive increased brand awareness and consumerdemand across all brands.

Financial

-- Accretive to earnings. adidas expects the transaction to be accretive to the Group's earnings per share in the first full year after closing.

-- Return in excess of cost of capital. The transaction is expected to generate a return in excess of cost of capital in the third full year after closing.

-- Strong operating cash flow. With aggregate 2004 pro forma cash flow of approximately

EUR 671 million (U.S. $835 million), adidas expects the combinedGroup's financial strength to enable it to reduce debt and continuefunding the Group's established growth initiatives.

-- Substantial operational synergies. adidas expects to achieve approximately EUR 125 million

(U.S. $150 million) of annual cost savings by the third year afterclosing. In addition, the Group expects incremental revenue andprofits from more complete coverage of all consumer segments.

Financing and Capital Structure

adidas-Salomon AG intends to finance the acquisition through acombination of debt and equity, with the objective of maintaining astrong investment grade profile.

Management and Headquarters

The structure of the combined Group has been agreed to secure arapid delivery of the strategic and financial benefits created by thetransaction. adidas will maintain its corporate headquarters inHerzogenaurach and its North American adidas headquarters in Portland,Oregon. Mr. Fireman will remain as Chief Executive Officer of ReebokInternational Ltd. and will continue to lead the Reebok team. Reebokwill continue to operate under its name and will retain itsheadquarters in Canton, Massachusetts. This transaction is aboutgrowing the combined entity, and adidas-Salomon does not anticipatesignificant workforce reductions.

Approvals and Timing

The transaction is subject to customary closing conditions andregulatory approvals as well as approval by Reebok shareholders. Pauland Phyllis Fireman collectively own approximately 17% of Reebok'soutstanding shares and have agreed to vote their shares in favor ofthe transaction. The companies believe that the transaction will closein the first half of 2006.

Advisors

In connection with the transaction, Merrill Lynch is acting asfinancial advisor to adidas-Salomon AG, and an international legalteam led by Simpson Thacher & Bartlett LLP assisted by BeitenBurkhardt, Eversheds LLP and Wilmer Cutler Pickering Hale and Dorr LLPis serving as legal counsel. Credit Suisse First Boston LLC is actingas financial advisor to Reebok, and Ropes & Gray LLP and Latham &Watkins LLP are serving as legal counsel.

About adidas-Salomon AG

Based in Herzogenaurach, Germany, adidas-Salomon is the secondlargest sporting goods company in the world with its core brandsadidas and TaylorMade-adidas Golf. Excluding the Salomon businesssegment, which is planned for divestiture at the end of September, theadidas Group had

14,217 employees and reached sales of EUR 5.9 billion in 2004. TheGroup's net income attributable to shareholders from continuing anddiscontinued operations reached EUR 314 million in 2004.

About Reebok International Ltd.

Reebok International Ltd. (NYSE: RBK), headquartered in Canton,MA, is a leading worldwide designer, marketer and distributor ofsports, fitness and casual footwear, apparel and equipment under theReebok, Rockport, CCM, Jofa, Koho and Greg Norman brands. Sales for2004 totaled approximately $3.8 billion. Reebok can be accessed on theWorld Wide Web at www.reebok.com.

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.

Important Legal Information

This communication is being made in respect of the proposed mergerinvolving adidas and Reebok. In connection with the proposed merger,will be filing a proxy statement for the stockholders of Reebok andother documents regarding the proposed transaction, with the U.S.Securities and Exchange Commission ("SEC"). Before making any votingor investment decision, Reebok's stockholders and investors are urgedto read the proxy statement regarding the merger and any otherrelevant documents carefully in their entirety when they becomeavailable because they will contain important information about theproposed transaction. The registration statement containing the proxystatement/prospectus and other documents will be available free ofcharge at the SEC's website, www.sec.gov. Stockholders and investorsin Reebok will also be able to obtain the proxy statement and otherdocuments free of charge by directing their requests to: Office ofInvestor Relations, Reebok International Ltd., 1895 J.W. FosterBoulevard, Canton, MA 02021.

Reebok and its directors, executive officers and other members ofmanagement may be deemed to participate in the solicitation of proxiesin respect of the proposed transactions. Information regardingReebok's directors and executive officers is available in Reebok'sproxy statement for its 2005 annual meeting of stockholders, which wasfiled with the SEC on March 8, 2005. Additional information regardingthe interests of such potential participants will be included in theproxy statement/prospectus and the other relevant documents filed withthe SEC when they become available.

Teleconference and Webcast

adidas will host a teleconference and webcast for investors,analysts and media at 10:30 a.m. CET today. Interested parties whowould like to participate by phone may call +44 (0)207 365 1849 and

+1-718-354-1172 (U.S.). Ask to be connected to the adidasteleconference. The teleconference will also be simultaneously webcastat www.pressnews.net/adidasgroup/.

Following the teleconference, an audio replay will be availablefor 28 days. Callers should dial

+44 (0)20 7784 1024. U.S. callers should dial +1-718-354-1112. Theconference replay code is 6113426. The replay may also be accessed onwww.adidas-Salomon.com.

U.S. Teleconference and Webcast

adidas and Reebok will also host a teleconference and webcast at9:30 a.m. EDT (3:30 p.m. CET) for

U.S. analysts and investors. The call may be accessed at+1-718-354-1152 (U.S.) and

+44 (0)20 7784 1004 and will be simultaneously webcast atwww.pressnews.net/adidasgroup/.

Following the call, an audio replay will be available for 28 days.Callers should dial

+44 (0)20 7784 1024. U.S. callers should dial +1 718 354 1112. Theconference replay code is 4861276. The replay may also be accessed onwww.adidas-Salomon.com.

Media Teleconference and Webcast

adidas and Reebok will also host a media teleconference andwebcast at 5:30 p.m. CET (11:30 a.m. EDT). The call may be accessed at+44(0)20 7365 1850 and +1 718 354 1172(U.S.) and will besimultaneously webcast at www.pressnews.net/adidasgroup/.

Following the call, an audio replay will be available for 28 days.Callers should dial +44(0)20 7784 1024. U.S. callers should dial +1718 354 1112. The conference replay code is 4942815. The replay mayalso be accessed on www.adidas-Salomon.com.

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