Ladies and Gentlemen,

Throughout fiscal 2007, the Supervisory Board continued to take great care in fulfilling its duties as established under the law, the Company’s Articles of Association, and its Bylaws.

Cooperation of Managing Board and Supervisory Board

The Supervisory Board provided counsel to the Managing Board and monitored its management of the Company. The Supervisory Board was directly involved at an early stage in all decisions of fundamental significance for the company. The Managing Board reported regularly to the Supervisory Board, both verbally and in writing, on all relevant aspects of corporate planning and strategic development as well as on business processes and changes in key financial figures in a prompt and comprehensive fashion, including via monthly reports. Any deviations from forecasts and targets were explained individually to the Supervisory Board and reviewed by means of the documentation presented. The Managing Board coordinated the strategic orientation of the Company with the Supervisory Board and submitted all matters requiring authorization to the Supervisory Board for resolution in a timely manner. The Supervisory Board issued its authorizations after review of the documentation and, if necessary, asking for clarification from the Managing Board and discussing the matter with the members of the Managing Board. In urgent cases, a written resolution was requested. Moreover, the Chair of the Managing Board and the Chair of the Supervisory Board held regular discussions on key developments and upcoming decisions.

Changes in the membership of the Supervisory Board of HUGO BOSS AG

Due to the withdrawal from the Supervisory Board of shareholder representatives Philippe Bouckaert, Andrea Donà dalle Rose, Antonio Favrin, Reinhold L. Mestwerdt, and Dario Federico Segre, on October 4, 2007 the following new members were judicially appointed as shareholder representatives for the current term of office: Gianluca Andena, Fabrizio Carretti, Ulrich Gasse, Dr. Martin Weckwerth, and Katrin Wehr-Seiter. At the Supervisory Board meeting of October 24, 2007, the committees were correspondingly reformed.

The Supervisory Board would like to take this opportunity to thank the former Supervisory Board members for their consistently constructive and knowledgeable input and for their contributions to the excellent working atmosphere.