NIKE, Inc. Reaches Agreement to Acquire Umbro

NIKE, Inc. Reaches Agreement to Acquire Umbro

October 23, 2007

Move significantly expands Nike's global leadership in
football


    BEAVERTON, Ore., Oct. 23 /Xinhua-PRNewswire/ -- NIKE,
Inc. (NYSE: NKE) today announced that it has reached
agreement on an all-cash offer to acquire Umbro plc, a
leading United Kingdom-based global football (soccer) brand
with more than 70 years of experience in the world's No. 1
sport and the world's biggest football market. 

    ( Logo:
http://www.newscom.com/cgi-bin/prnh/19990818/NIKELOGO )

    The Board of Directors of Umbro plc, which is listed on
the London Stock Exchange, has unanimously recommended that
shareholders accept the offer of 193.06 pence, which
together with the declared dividend values the company at
approximately $582 million (285 million pounds sterling),
or approximately $4.00 (195 pence) per share.

    "Umbro is a brand with a powerful heritage and
deep experience in the world's most popular sport and the
world's biggest football market," said Nike, Inc.
President and CEO Mark Parker. "With its close links
to The Football Association and the England team, Umbro's
future is even stronger than its past. This dynamic
alignment of Umbro and Nike, with our complementary
strengths and numerous ways to segment and grow the market,
will lead the game at every level throughout the world. We
are fully committed to helping Umbro reach its full
potential, and we are delighted that Umbro's board is
unanimous in its support of our offer." 

    The acquisition will significantly expand Nike's global
leadership in football, a key growth category for the
company. Since the early 1990s, Nike has grown its football
revenues from about $40 million to approximately $1.5
billion and established brand leadership in the sport.
Umbro sells products directly or through licensees in more
than 90 countries and has sports marketing relationships
with many top football players, teams and leagues,
including the England national team. Umbro's 2006 annual
revenues were approximately $276 million (149.5 million
pounds). Umbro reports that if licensed sales were
translated to direct sales based on wholesale cost, total
wholesale equivalent sales were approximately $755 million
(409.4 million pounds).

    Commenting on the agreement, Umbro CEO Steve Makin
said, "This is an excellent deal for all our
stakeholders: it provides great value for shareholders and
exciting prospects for our colleagues, partners and
customers around the world. We will be a stronger and
better business as part of Nike and this deal will allow us
to accelerate our existing growth strategy by leveraging
Nike's global resources and expertise. We look forward to
taking Umbro to new levels with Nike's support."

    Brian Barwick, CEO of The Football Association, said:
"The FA has enjoyed an excellent partnership with
Umbro for more than 20 years. We are delighted that the
proposed acquisition will allow us to continue our strong
historical relationship with Umbro while benefiting from
the marketing expertise and financial strength of Nike. 
Nike has provided firm assurances that The FA relationship
with Umbro will be protected and enhanced, and we look
forward to working closely with both companies moving
forward."

    Nike intends to operate Umbro as a stand-alone
affiliate brand, with a focus on accelerating the brand's
existing growth strategy. Similar to other brands in Nike's
portfolio, Umbro will benefit from Nike's product research,
design and development expertise, and supply chain and
distribution resources.

    Umbro will join a strong and growing Nike portfolio of
affiliate brands, including Converse, which was acquired by
Nike in 2003, Cole Haan and Hurley International. Converse
exemplifies Nike's track record of acquiring and growing
complementary brands. Since acquiring Converse in 2003,
revenue has grown at a compound rate of 22 percent, and in
fiscal 2007 Converse revenues grew over 20 percent to
surpass $550 million. The brand has benefited from Nike
product design and brand management expertise. Nike's
portfolio of other businesses is contributing more than $2
billion in revenue today, and is targeted to contribute 25
percent of the company's revenue growth by fiscal 2011. To
discuss these developments with analysts and investors, the
company will hold a conference call Tuesday, October 23, at
3 pm ET. 

    U.S. Locations:                             (877)
407-0778
    International Locations:                    (201)
689-8565

    The call also will be webcast live at
http://www.NikeBiz.com/invest. If you are unable to
participate in the conference call or would like to access
a replay of the call, it will be available beginning
October 23, 2007, through October 30, 2007. From U.S.
locations, dial [phone] and enter account number
286, conference number 259716 when instructed to do so.
From international locations, dial [phone]. A replay
of the call also will be available at
http://www.NikeBiz.com/invest .   

    FOR FURTHER INFORMATION:

    Investor Contact
    Pamela Catlett
     [phone] 


    Media Contacts
    US: Alan Marks, Director of Media Relations: 503 671 
2673 
    UK: Charlie Brooks, UK Head of Corporate
Communications, 
        [phone]

    About NIKE, Inc.

    NIKE, Inc. based near Beaverton, Oregon, is the world's
leading designer, marketer and distributor of authentic
athletic footwear, apparel, equipment and accessories for a
wide variety of sports and fitness activities. Wholly owned
Nike subsidiaries include Converse Inc., which designs,
markets and distributes athletic footwear, apparel and
accessories; NIKE Bauer Hockey Inc., a leading designer and
distributor of hockey equipment; Cole Haan, a leading
designer and marketer of luxury shoes, handbags,
accessories and coats; Hurley International LLC, which
designs, markets and distributes action sports and youth
lifestyle footwear, apparel and accessories and Exeter
Brands Group LLC, which designs and markets athletic
footwear and apparel for the value retail channel. For
further information about Nike visit http://www.nikebiz.com
.

    This announcement is not intended to and does not
constitute or form any part of an offer or invitation to
sell or subscribe for or purchase any securities or
solicitation any vote or approval in any jurisdiction
pursuant to the acquisition of Umbro plc or otherwise.  

    The distribution of this announcement in jurisdictions
other than the UK and the US may be restricted by law and
therefore any persons who are subject to the laws of any
jurisdiction other than the UK and US should inform
themselves about, and observe, any applicable requirements.
 


    For more information, please contact:

    Investor contact:
     Pamela Catlett
     Tel: [phone]

    Media contact:

     US - Alan Marks
     Director of Media Relations
     Tel: [phone] 

     UK - Charlie Brooks
     UK Head of Corporate Communications
     Tel: [phone]