Press Release

Hucke AG shows significantly improved operative result at half year 2003/2004

While last year - owing to the one-off extraordinary event of selling the Basler companies - Hucke showed a pre-tax result of 42.5 million euros, as per October 31, 2003 it achieved a pre-tax result if minus 0.2 million euros.
The success of the restructuring measures initiated in the past business year only becomes evident if one compares the operative results. It is here that the company succeeded in improving the pre-tax result from minus 5.2 million euros in the previous year to minus 0.2 million euros. With the new, efficient organisational structure it has been possible to ensure that the market-related drop in sales has not had the full impact on the result.

During the first six months of the current business year HUCKE has made a total turnover of 83.9 million euros (previous year 84.2), whereby the drop in sales in the womenswear, menswear and childrenswear segments has been almost completely compensated by the sales of the sportswear brand, VENICE BEACH, which became a member of the Hucke Group on May 1, 2003.

Notwithstanding the increasing restraint exercised by the trade regarding advance orders, at 71.1 million euros, incoming orders in the first half of the year were slightly up on the previous year (70.9 million euros) thanks to VENICE BEACH, which was taken into account for the first time.

Hucke AG does not expect the market to pick up significantly in the second half of the current business year. For this reason, it will still be necessary to adjust structures and optimise costs in order to boost results in future. The securing of sales, brand loyalty, and targeted cost controlling will continue to characterise the current business year.

The Management Board anticipates a gross consolidated turnover of 175 to 180 million euros for the whole business year 2003/2004, with the objective of thus achieving a balanced result.

Lübbecke, December 15, 2003

Management Board