Nike Gains Stake in Umbro, Furthers Acquisition Process

Nike Inc.'s wholly owned subsidiary Nike Vapor Ltd. acquires 19.9 percent of Sports Direct International's holdings in Umbro plc. The shares were purchased at approximately $3.83 per share. Mark Parker, president and CEO of Nike, says, "We are pleased to have acquired this strategic stake in Umbro, which gives us a strong platform from which to proceed with our acquisition of this iconic football brand. We remain fully committed to our compelling offer for Umbro, which continues to have the support of both Umbro's Board of Directors and the Football Association." On October 23, Nike announced that it has reached agreement for an all-cash offer of 285 million (approximately $565 million) to acquire Umbro. The Board of Directors of Umbro plc has unanimously recommended that shareholders accept the offer. Sports Direct International has also given an irrevocable undertaking to vote its remaining 10 percent stake in Umbro in favor of the Transaction at the Court Meeting and General Meeting to be held on January 31, 2008. This irrevocable undertaking will remain binding in the event that a competing offer for Umbro is announced.