UNDERLYING SALES UP IN ALL REGIONS EXCEPT NORTHAMERICA

Salomon sales in the third quarter of 2003 decreased 14% (—7% currency-neutral) from ‚¬ 230 million in 2002 to ‚¬ 199 million due to lower sales in winter sports categories. Year-to-date revenues declined 8% (—2% currencyneutral) from ‚¬ 424 million in 2002 to ‚¬ 390 million in 2003. All regions recorded positive currency-neutral developments except North America. From a category perspective, increases in cycling components and soft goods were offset by lower sales in winter sports and inline skates.

CURRENCY EFFECTS HAMPER GROSS PROFIT DEVELOPMENT

OPERATING PROFIT IMPROVES BY 15%

Q4 SALES TO BE IMPACTED BY CURRENCY AND DIFFICULTMARKET CONDITIONS

Salomon