Adler Modemaerkte : Modemärkte to Work with New Strategic Sourcing Partner Hermes-OTTO International

Press release

Progress in Implementing "2020 Strategy":

ADLER Modemärkte to Work with New Strategic Sourcing Partner Hermes-OTTO International

Haibach (near Aschaffenburg), 18 April 2018:In implementing its "2020 Strategy", Adler Modemärkte AG has reached a key milestone in further optimising its supply chain: in Hermes-OTTO International (H-OI), Hong Kong, the Group has signed a new sourcing agent as a strategic partner to replace its current suppliers, METRO Sourcing International and NTS Holding, from the second quarter of 2019. In March 2018, ADLER announced its "2020 Strategy" to focus more closely on the needs of its target group of over 55-year-olds. Against this backdrop, the Company expects the partnership with H-OI to create fresh momentum for production, quality and social responsibility. The aim is to further boost the efficiency and flexibility of procurement workflows, and H-OI's wide range of digital product development and 3D fit solutions will play a key role in the partnership between the two companies.

ADLER established its Supply Chain Management division in 2017 to optimise processes, merchandise allocation and markdown management, and to improve efficiency. In connection with this, the existing contract with the former logistics service provider BLG was terminated with effect of year-end 2018 and a new contract was entered into with Meyer & Meyer. ADLER expects the change in logistics partners to make the delivery and distribution of goods easier to plan and more cost effective, and envisages cost savings in the low- to mid-seven-figure range starting in 2019.

About Adler Modemärkte AG:

Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2017, the Group earned €525.8 million in revenue and generated €32.0 million in EBITDA (adjusted: €25.4 million). As at 31 December 2017, ADLER has approximately 3,800 employees and currently operates 181 stores, 154 of which are located in Germany, 22 in Austria, three in Luxembourg, two in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m2of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to 70 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 55 and over.

For more information:www.adlermode-unternehmen.com;www.adlermode.com

About Hermes-OTTO International:

Hermes-OTTO International (H-OI) is a global sourcing organisation. With 1,300 employees and 25 offices covering all key sourcing markets, H-OI has built up a network of first-rate suppliers over the past 50 years. H-OI sources mainly clothing, accessories, lingerie, shoes, and home textiles and decoration. It also offers quality assurance and audit services, as well as web-based supply chain management solutions. Hermes-OTTO International is an Otto Group company.

Further information:www.hermesworld.com/sourcing

Contact Adler Modemärkte AGInvestor Relations

Katrin Schreyer

Tel.: +49 6021 633 1828

E-mail:investorrelations@adler.de