*** FAX ***

To: Dr. Reiner Hengstmann
Global Head Environmental & Social Affairs
PUMA AG
Germany
Tel: +49-9132-81-2398
Fax: +49-9132-81-2281
E-mail: reiner.hengstmann@puma.com

From: Nina Ascoly
International Secretariat Clean Clothes Campaign, Amsterdam

Re: Labor dispute at Matamoros Garment

January 22, 2003

Dear Mr. Hengstmann,

I am contacting you in regard to the ongoing labor dispute at Matamoros Garment, a Puma contract facility located in Puebla, Mexico. The Clean Clothes Campaign (CCC) has been informed that on January 13th, after working for more than three weeks with no pay, in violation of Mexico's labor laws, the majority of the factory's workers went out on strike. We understand that in addition to management's failure to pay wages owed to the workers, a number of other rights violations have been reported at this facility.

I believe that my colleague Maik Pflaum from the German Clean Clothes Campaign has been in contact with you regarding these issues. On behalf of the International Secretariat of the CCC, I would like to add another voice of concern in relation to this matter.

The rights violations reported at Matamoros are violations of Mexican law and the Puma code of conduct. We urge you to use your influence as a valued client to demand that Matamoros management pay workers the wages they are owed and recognize and negotiate with the independent union that the workers have formed.

The CCC believes it is urgent that Puma send a representative to Matamoros Garment as soon as possibile to investigate the situation. Workers have been without pay for weeks and their situation is serious. We have also been informed that the workers are being told by management that if they continue to demand their rights, Puma will cut their contract with Matamoros. We certainly hope that this is not the message that Puma has communicated to Matamoros management. If so, this is very troubling and runs counter to the message Puma has promoted -- that of being interested in pursuing a course of ethical trade and social responsibility in its business practices.

Puma has an opportunity to intervene in a positive way to support attempts to enforce workers' rights at Matamoros Garment. Shifting orders to another maquiladora with bad working conditions is not the answer to this problem and only punishes the workers who are demanding justice. It is important that Puma informs Matamoros workers and management that Puma supports workers' right to organize and has no intention of cutting its ties to the factory in response to this dispute. In addition to conveying this message as soon as possible, we urge you to contact the Centro de Apoyo al Trabajador (CAT) [Workers Support Center], a local organization in Puebla that is supporting the striking workers and which can provide valuable input for your investigation.

I hope that will keep us informed of any action taken in relation to this urgent matter.

Sincerely,

Nina Ascoly