Letter from Dr. Hengstmann send on february 12 to CAT and organizations and individuals that supported the campaign.

Dear Madam, Dear Sir:

I am writing with regard to the recent allegations that have surfaced cornering PUMA's operations and association with Matamoros Garment, Mexico.

As I am sure you understand, PUMA is deeply troubled by the above. Our concern extends well past ensuring that PUMA's brand and image remain untarnished and true to the ideals set forth in our Corporate Code of Conduct, as we were very disturbed by the alleged injustices experienced by the employees of the Matamoros Garment Factory. In light of the above, PUMA and its sourcing Subsidiary, World Cat America (WCA), have engaged in a fact-finding mission aimed at clarifying the details of the situation at hand. Our efforts to uncover the details of these alleged injustices include flying three individuals from our corporate headquarters to Mexico, as well as documenting and filming all interviews and interactions.

To ensure that there is equal understanding of the events that transpired regarding the alleged injustices, I would like to recap the major milestones in PUMA's and Matamoros Garment's relationship.

PUMA is a global company that markets and distributes sports footwear and apparel to an international audience. PUMA is not a producer of these items and relies solely on contract production in approximately 28 countries to fulfill its production needs.

The above named events triggered a series of assertions against PUMA. Upon closer examination all of these allegations are based on unsubstantiated claims and improperly communicated information. Specifically the following elements need to be addressed to ensure that proper information is conveyed.

Workers indicated that they were not paid for 3.5 weeks: Although workers were paid up to one week late as a result of Matamoros financial difficulties, they were paid their full wages. Payments were witnessed by Junta de Conciliacion (the Mexican Worker's Court). Detailed records indicating payments and receipts of these can be found at www.matamorosgarment.com/payment. Members of the independent support center for workers "Centro de Apoyo al Trabajodor" retracted previously issued statements indicating that Matamoros workers were not paid.

Unhealthy cafeteria conditions: Problems stemmed from the agricultural use of surrounding fields resulted in the flooding of Matamoros Garment factory's cafeteria. A professional contractor hired by the company to construct proper flood prevention barriers has resolved this problem. More importantly, even on days where flooding did occur, a cleaning crew swept out the cafeteria prior to employee lunch breaks.

Forced overtime: Throughout the duration of PUMA's contract, including the time after which the contract was ended, but production of PUMA product ensued, interviewed workers categorically denied that they were forced, required, or strongly encouraged to work overtime. Requests for overtime work were freely declined without any consequence for the worker. This information has been verified by all of the randomly selected workers who were interviewed between February 3-4 2003.

Locked in factory: Again, all 22 interviewed employees indicated that they were never locked in the factory. They could, with permission from Human Resources and / or their Supervisors leave the factory at any time. Permission was required to ensure that proper time-keeping practices could be implemented.

Freedom of association: All persons interviewed stated that they are allowed to be or are already members of the "Sindicato Francisco Villa de la Industria Textil y Conexos Miembro de la C.T.M. This organization has been the legal work union at the factory since November 1999. More importantly, two of the three interviewed Centro de Apoyo al Trabajodor members confirmed that they have freedom of association and have requested that their own union gains recognition and legal acceptance.

Verbal and physical abuse: Interviewed employees overwhelmingly denied that physical or verbal abuse occurred in the Matamoros Garment factory. PUMA, by its own free will acknowledges that verbal abuse is subjective to individual opinions and that any measure of this type is subject to differing interpretations.

Lack of transport: As in the past, Matamoros will continue to provide free transportation to and from work for its employees. Recently, due to the company's economic situation, routes and schedules have been restructured to provide a more cost effective service network.

After careful analysis and constant dialogue with the relevant parties, PUMA realizes that Matamoros Garment factory workers have been affected by the events that transpired in the preceding months. Nonetheless, PUMA has made every effort to preempt and rectify the situation, even at considerable cost to PUMA and its partners. The Centro de Apoyo al Trabajodor, which has been instrumental in our investigations, has also reached the conclusion that PUMA was placed in precarious position, not as a result of its actions or negligence, but purely because of its international clout and ability to draw attention to the circumstances beyond its control. As a result, Centro de Apoyo al Trabajodor has informed us that they are planning on issuing a statement retracting the assertions listed above. In an effort to show good will and the potential for renewed interaction, PUMA will consider reestablishing normal business relationships with the Matamoros Garment factory once matters underscoring the current difficulties are resolved to everyone's satisfaction.

At PUMA we strongly adhere to the code of conduct and the policies laid out in our S.A.F.E. manual. These, along with constant inspection, dialogue, and interaction with all partners and stakeholders have allowed us to elevate the standard of living for those individuals who allow PUMA's goals to become reality.

Sincerely,

Dr. Reiner Hengstmann