HUGO BOSS AG closed the fiscal year with net income of EUR 44 million (2006: EUR 78 million). Other revenue reserves of EUR 420 million were dissolved (2006: EUR 25 million). The distributable profit after allocation to retained earnings and profits carried forward amounted to EUR 454 million. Against this backdrop, the Managing and Supervisory Boards have recommended to the Annual Shareholders’ Meeting that a dividend of EUR 1.45 per common share and EUR 1.46 preferred share be paid for fiscal 2007. In addition, the Supervisory Board closely studied the proposal of the Managing Board for payment of a special dividend in light of the desired future capital structure, and agreed to the recommendation for payment of the special dividend for fiscal 2007 in the amount of EUR 5.00 per share. This corresponds to an amount of EUR 445 million (2006: EUR 82 million). A proposal will also be made to the Annual Shareholders’ Meeting for a carry-forward of the remaining net retained earnings.