19.03.2008
Ad hoc announcement in accordance with §15 WpHG
Metzingen, March 19, 2008 - 10:42 AM

Agreement regarding location and employment of HUGO BOSS AG

Metzingen. To demonstrate their confidence in the future growth strategy, the Managing Board of HUGO BOSS AG and the Works Council of the company have today agreed on a comprehensive shop agreement regarding location and employment, which has a term of 5 years. Among others, the agreement provides that the Metzingen site remains the group headquarter and that the headcount will not fall below the number of employees of the German locations of HUGO BOSS employed as of December 31, 2007.

Metzingen, March 19, 2008

The Managing Board

HUGO BOSS AG
Dieselstrasse 12
72555 Metzingen

Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:

HUGO BOSS reaffirms growth strategy with workplace agreement

Metzingen, March 19, 2008. To demonstrate their confidence in the Group's future growth, the HUGO BOSS Managing Board and Works Council have sealed a comprehensive workplace agreement with the support of the Supervisory Board. Now that negotiations have been successfully completed, the company is responding to the press coverage of the past few days.

“The strategic orientation of the Group remains unchanged,” stated Joachim Reinhardt, Chief Financial Officer of HUGO BOSS AG. “The proposed dividend payment will not constrain the financial flexibility needed by the company to conclude acquisitions and generate sustained organic growth.”

“Record levels of investment are planned both this year and in the future with the goal of posting renewed growth and creating new jobs,” commented Hans Fluri, Chief Operating Officer at HUGO BOSS AG. “Our majority shareholder will be actively supporting this expansion program and the capital expenditure it will necessarily entail.”

This has also been confirmed by the Chairman of the Works Council, Antonio Simina: “The Works Council, the Managing Board and the majority shareholder Permira enjoy a constructive working relationship and there is consensus on the strategy that the Group will be pursuing in the future. From the perspective of the Works Council, we are particularly pleased with the workplace agreement and the intention to create additional jobs.”

This document contains forward-looking statements that reflect management's current views with respect to future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should," and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.