adidas-Salomon reported that currency-neutral sales for the Group grew 5% in 2003, but declined 3.9% to reach €6.267 billion ($7.09 bn) in 2003 from €6.523 billion ($6.17 bn) in 2002 when measured in the reporting Euro currency.

From a brand perspective, adidas posted the most substantial gains, with sales up 5% on a currency-neutral basis. Primary contributors to this growth were the Sport Performance running and training categories. Salomon sales were up 2% on a currency-neutral basis, mainly as a result of higher sales of Mavic cycling components, outdoor footwear and Salomon apparel. TaylorMade-adidas Golf sales grew 4% on a currency-neutral basis. Strong increases in the TaylorMade iron and putter categories as well as at adidas Golf more than offset the negative sales effect from the non-renewal of a licensing and distribution agreement with Slazenger Golf at the end of 2002 as well as lower metalwood and golf ball sales.

Currency effects from a strong euro, especially versus the U.S. dollar, negatively impacted sales in euro terms.

In the reporting Euro currency, sales at brand adidas declined 3.o% to €4.95 billion ($5.6 bn) in 2003 from
€5.11 billion ($4.8 bn) in 2002. Salomon sales were down 3.8% to €658 million ($745 mm) from €684 million ($647 mm) in the prior year, and TaylorMade-adidas Golf sales declined 9.9% to €637 million ($721 mm) from €707 million ($669 mm) in 2002. TM-aG sales were up 7.8% when measured in U.S. dollars.

                     2002            2003     Change y-o-y     Change y-o-y
                    euro in         euro in   in euro terms   currency-neutral
                   millions        millions        in %              in %
     adidas          5,105           4,950          (3)                5
     Salomon           684             658          (4)                2
      adidas Golf      707             637         (10)                4
     Total           6,523           6,267          (4)                5

    adidas-Salomon sales by brand in 2003, "Total" includes HQ/Consolidation

On a regional basis, currency-neutral sales for adidas-Salomon in Europe grew 8%. The major drivers of this growth were strong increases in Italy and the U.K. as well as continued solid performance in France and the emerging
markets. In North America, Group sales declined 6% on a currency-neutral basis, reflecting a weakness in demand for most adidas product lines. In Asia, sales increased 7% on a currency-neutral basis driven by stronger sales in
Japan, China and India. Latin America was the fastest growing region for the Group in 2003 with currency-neutral sales up 35%, reflecting particularly strong performance in Brazil and Argentina.

In reporting Euro terms, sales for adidas-Salomon in Europe increased 5.2% to €3.37 billion ($3.81 bn) in 2003 from €3.20 billion ($3.03 bn) in 2002. In North America, sales in euros declined 20.3% to €1.56 billion ($1.77 bn) in 2003 versus €1.96 billion ($1.85 bn) in the prior year. In Asia sales were down 4.3% to €1.116 billion from €1.166 billion in 2002, and in Latin America sales in euros grew 9.8% to reach €179 million ($203 mm) in 2003 versus €163 million ($154 mm)in 2002.

                     2002            2003     Change y-o-y     Change y-o-y
                    euro in         euro in   in euro terms   currency-neutral
                   millions        millions        in %              in %
     Europe          3,200           3,365           5                 8
     North America   1,960           1,562         (20)               (6)
     Asia            1,166           1,116          (4)                7
     Latin America     163             179          10                35
     Total           6,523           6,267          (4)                5

    adidas-Salomon sales by region in 2003, "Total" includes HQ/Consolidation

The adidas-Salomon gross margin grew 1.7 percentage points to 44.9% of sales in 2003, up from 43.2% in 2002. This is the highest level ever and reflects the impact of increased adidas own-retail activities, an improving
product mix and the stronger euro. As a result of this development, the Group's gross profit remained virtually unchanged at €2.814 billion ($3.19 bn) versus €2.819 billion ($2.67 bn) in 2002 despite lower sales in euro terms.

Operating expenses, including selling, general and administrative expenses (SG&A) and depreciation and amortization (without goodwill), declined by 1% to
€2.324 billion in 2003 from €2.343 billion in 2002. As a percentage of sales, however, operating expenses increased 1.2 percentage points to 37.1% in 2003 versus 35.9% in 2002. The main contributors to this increase were the continued expansion of own-retail activities and the extension of promotion and advertising contracts with renegotiated conditions. As a result of these developments, operating profit for the Group increased 3% to €490 million in 2003 from €477 million in 2002 and operating margin increased 0.5 percentage points to 7.8% in 2003 from 7.3% in 2002.

Income before taxes grew 12% to euro 438 million in 2003, compared to €390 million in the prior year. Operational progress was enhanced by significantly lower financial expenses which declined 44%. Lower average debt levels and interest rates contributed to the better result. In addition, financial expenses in 2002 included non-recurring negative currency effects from devaluations of foreign currencies in Brazil, Turkey and Argentina. These
were not repeated in 2003.

Net income increased by 14% to a record level of €260 million $294.3 mm) in 2003 from €229 million ($216.6 mm) in 2002. Basic and diluted earnings per share, both at €5.72 ($6.48) in comparison to €5.04 ($4.77) in 2002, were at the upper end of the Group's targeted earnings range. Minority interests, which declined by 17%, and a fairly stable tax rate at 38.0% (2002: 37.9%) supported the Group's favorable net income level.

adidas-Salomon Chairman and CEO Herbert Hainer stated: “Despite tough market conditions due to global uncertainties and exchange rate differentials, which widened throughout the year, our financials clearly indicate that we have made major headway in the past twelve months. We grew our currency-neutral sales in 2003 by 5%, delivered a record gross margin and posted our highest earnings ever. These achievements reflect our Group's commitment and ability to continuously deliver high-quality financial performance.”

Net borrowings at December 31, 2003 were euro 946 million, down 37% or euro 552 million versus euro 1.498 billion at the end of the prior year. This represents the largest reduction in the Group's history, supported by continued strict working capital management. In addition, positive currency effects and the equity increase related to the Group's convertible bond issue positively impacted net borrowings. As a consequence, the Group's financial
leverage improved 69 percentage points to 70% in 2003 versus 139% in the prior year.

As a result of focused working capital reduction initiatives undertaken throughout 2003, inventories were reduced by 2% to €1.164 billion ($1.46 bn) in 2003 from €1.19 ($1.25 bn) billion in 2002 with improvements at all brands within the Group. On a currency-neutral basis, inventories increased 5%, which is in line with sales growth expectations for 2004. Receivables were reduced by 17% to €1.075 billion ($1.35 bn) versus €1.29 billion ($1.36 bn) in the prior year. On a currency-neutral basis, the decline was 10% reflecting strict discipline in the Group's trade terms management as well as concerted collection efforts at all brands. In addition, year-end receivables development was positively impacted by lower fourth quarter revenues in North America compared to the particularly strong sales in the region during the same period in the prior year.

The adidas-Salomon Executive and Supervisory Boards will recommend a dividend of euro 1.00 per share for the 2003 fiscal year at the Annual General Meeting on May 13, 2004. With a total payout of over euro 45 million the proposal represents a payout ratio of 17% of net income and reflects adidas-Salomon's continued commitment to improve the Group's financial position while also creating substantial value for the shareholders. This proposal is in line with the Group's dividend policy, which recommends a payout ratio of between 15 and 20% of consolidated net income.

In the fourth quarter of 2003, adidas-Salomon sales declined by 4% on a currency-neutral basis mainly as a result of unfavorable comparisons with the prior year period, where sales in North America and at TaylorMade-adidas Golf were particularly strong. In euro terms, sales decreased 10% to €1.354 billion ($1.6 bn) in 2003 from €1.511 billion ($1.4 bn) in 2002. Gross margin increased 540 basis points to 47.8% of sales versus 42.5% in the year-ago period.

Fourth quarter operating profit decreased 37% to €42 million in 2003 from €66 million in 2002. Net income decleined 6.9% to €27 million, or €0.58 per share versus €29 million, or €0.64 per share, in Q4 last year. EPS declined 9.4% for the quarter.

adidas currency-neutral order backlogs at the end of 2003 grew 2% versus the prior year. This increase was mainly driven by apparel backlog growth of 13% which represents the highest apparel order increase in more than four
years and highlights the strength of the adidas “Apparel Breakthrough” initiative. Footwear orders declined 7%, reflecting weakness in North America due to declines in all major categories except football. In euro terms, brand
adidas order backlogs declined 5%.

                    Footwear              Apparel            Total
    Change     in euros  currency-   in euros  currency-   in euros  currency-
     y-o-y                neutral               neutral               neutral
     in %
     Europe          1        4           11        13           6       9
     North America (38)     (26)         (17)       (2)        (31)    (18)
     Asia           (8)       1           28        40           8      18
     Total         (14)      (7)           6        13          (5)      2

    adidas order backlogs by product category and region as at
    December 31, 2003

Based on early market indications, as well as backlog development and feedback from retailers, the Group expects currency-neutral sales growth of around 3 to 5% in 2004. Higher sales at key brands, coupled with higher gross
margins and an improving operating margin, are expected to produce net income growth of at least 10% versus the prior year.

Herbert Hainer continued: “We are now concentrating all our efforts on strengthening our position in 2004. The European Football Championships in Portugal and the Summer Olympics in Athens are events which will enthuse athletes and consumers the world over. Our products and brands will be center stage and, propelled by our new “Impossible is Nothing” brand campaign, we are looking to deliver top- and bottom-line growth in 2004 and beyond.”

     4th QUARTER 2003

     euro IN MILLIONS                          2003     2002       Change

     NET SALES                                1,354    1,511       (10.4)%
     COST OF SALES                              706      869       (18.7)%
     GROSS PROFIT                               648      642          0.9%
        (% OF NET SALES)                      47.8%    42.5%         5.4PP
      EXPENSES                                  583      548          6.3%
        (% OF NET SALES)                      43.0%    36.3%         6.8PP
      (EXCL. GOODWILL)                           23       28       (16.3)%
     OPERATING PROFIT                            42       66       (36.5)%
        (% OF NET SALES)                       3.1%     4.4%       (1.3)PP
     GOODWILL AMORTIZATION                       11       11        (2.5)%
     ROYALTY AND COMMISSION INCOME               11       12        (9.3)%
     FINANCIAL EXPENSES, NET                      5       18       (72.1)%
     INCOME BEFORE TAXES AND MINORITY INTERESTS  37       49       (24.8)%
        (% OF NET SALES)                       2.7%     3.2%       (0.5)PP
     INCOME TAXES                                12       17       (32.3)%
          MINORITY INTERESTS)                 32.1%    35.6%       (3.5)PP
     MINORITY INTERESTS                           2       (2)     (161.9)%
     NET INCOME                                  27       29        (8.8)%
        (% OF NET SALES)                       2.0%     1.9%         0.0PP
     BASIC EARNINGS PER SHARE (IN euros)       0.58     0.64        (8.8)%

     euro IN MILLIONS                          2003     2002       Change

     adidas                                     933    1,055       (11.6)%
     Salomon                                    268      260          2.9%
     TaylorMade-adidas Golf                     150      191       (21.5)%

     EUROPE                                     688      660          4.4%
     NORTH AMERICA                              313      477       (34.4)%
     ASIA                                       299      325        (8.1)%
     LATIN AMERICA                               48       42         14.7%