Umbro plc has reached an agreement with Win Hanverky Group to purchase an additional 15% equity stake in its licensee for Greater China, Team & Sports Ltd and enter into a revised distribution agreement. Umbro purchased an initial 25% equity stake in October 2005. The consideration of $16.5 million is payable on completion which is expected within the next 14 days.

The agreement increases Umbro's exposure to the rapidly growing Chinese market,
which has a population of over 1.3 billion and growth in GDP of 10.7% in 2006.

Team & Sports distributes Umbro branded sportswear, footwear, accessories and
sports equipment in the Peoples Republic of China, Hong Kong and Taiwan on an
exclusive basis. As at 31st December 2006 there were over 90 distributors
operating over 1,000 Umbro retail outlets in these territories.

Umbro has a longstanding relationship extending over 15 years with Team and
Sports. Umbro's partner in Team and Sports is the Hong Kong listed Win Hanverky
Group, which is an integrated sportswear, active and outer wear manufacturer and
distributor for various top-tier international sportswear brands.

Win Hanverky is a listed company in Hong Kong and in accordance with the rules
of the Hong Kong stock exchange, a circular containing full details of the
transaction will shortly be sent to Win Hanverky shareholders. This obligation
arises because Umbro is a connected party under Hong Kong stock exchange rules.

Umbro CEO Peter McGuigan, commented, “This investment underlines our strategy to increase Umbro's exposure to growth markets. The additional investment in Team & Sports strengthens our position as a strategic partner in what is undoubtedly the most exciting market in the world
today.

We have an excellent partner in Win Hanverky Group and together we are well
positioned for the future development of the Umbro brand in China.”

Umbro is due to announce results for the year to December 2006 on 8th March
2007.

Fact box:

Sports in China:

  • Annual expenditure on sporting goods is 0.2% of GDP compared to 1.0% to
    1.5% for developed countries;

  • China will hold the 2008 Olympics in Beijing, an event that is
    anticipated to significantly increase sports participation and demand for
    sporting goods;

  • In a recent study of interest in international football in China carried
    out by Warwick Business School, England (whose kit sponsor is UMBRO) was
    found to be the Chinese football fans favourite international team. The
    England shirt was found to be the most popular football shirt across China.

    Umbro sponsorship in China:

  • China National Futsal Team
  • 3 out of 6 China Futsal League Teams
  • 2 Super League Teams : Changchun Yatai, Henan Construction
  • Futsal League Title Sponsorship

    China:

  • China population in excess of 1.3 billion;
  • GDP growth 1994 to 2004 of 11.3% per annum;
  • Chinese middle class anticipated to grow from 22% of households to 63% of households by 2015 with commensurate share of disposable income increasing from 40% to 66%; (National Bureau of Statistics; McKinsey Global Institute analysis).