PUMA AG has signed a shareholders’ agreement with its current licensee, Hong Kong-based Swire Pacific covering the Hong Kong and China markets. Based on an early termination of the existing long-term license agreement, the joint venture will become effective on January 1st 2006, with PUMA as the majority shareholder.

The aim of this partnership is to jointly explore the tremendous potential of the PUMA brand with its high brand awareness in the critical China market as well as to further enhance its already solid position in Hong Kong.


PUMA will also enter in a JV with its Japanese apparel licensee. Puma and Hit Union K.K. have agreed in principle to form a joint venture as of January 2006, in which PUMA will become the majority shareholder. Hit Union is the current PUMA licensee for apparel in Japan and has been responsible for the manufacturing and distribution of PUMA apparel in Japan for over 30 years.

Hit Union combines deep local knowledge of the special Japanese textile market with an extensive manufacturing background. This joint venture will establish Japan as the 2nd largest market for PUMA and it immediately establishes PUMA in the top three brands in its segment in the country.

In 2003 PUMA bought back its footwear and accessories license in Japan and founded a fully owned subsidiary, PUMA Japan K.K. The aim of the joint venture is to have the critical Japanese business fully aligned under one umbrella while being able to continue to use the tremendous apparel expertise of its current license partner and thus to quickly explore the further potential of the PUMA brand in Japan.

PUMA and the Taiwanese company Starlike Inc. have also agreed in principle to form a joint venture as of January 2006, in which PUMA will become the majority shareholder.

Starlike has very valuable experience and infrastructure in the Taiwanese market. This planned joint venture will enable PUMA to continue to enhance its position as a highly desirable Sportlifestyle brand in the 4th largest market in Asia.

PUMA AG has also decided to set up a 100% subsidiary in India. PUMA’s current licensee in India, Planet Sports, will continue to operate the business until PUMA is fully operative in January of 2006. After that Planet Sports will become a PUMA customer as well as a PUMA retail partner with the goal to jointly develop the retail infrastructure on a non-exclusive basis.

In addition PUMA is in the process of setting up a fully owned subsidiary in the Middle East, located in Dubai, which will serve as a hub coordinating its efforts across the region. PUMA Middle East should be operative and consolidating sales as of January of next year for most countries in the region.