AGENDA: Highlights Operational Performance Stock Market Business Strategy and Outlook

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1 Disclaimer

This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to Cia. Hering's growth prospects.

These are merely projections and, as such, are based exclusively on the expectations of Cia. Hering

management concerning the future of the business and its continued access to capital to fund the

Company’s business plan. Such forward-looking statements depend, substantially, on changes in

market conditions, government regulations, competitive pressures, the performance of the Brazilian

economy and the industry, among other factors and risks disclosed in Cia. Hering’s filed disclosure

documents and are, therefore, subject to change without prior notice.

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2 2 AGENDA:

• Highlights

• Operational Performance

• Stock Market

• Business Strategy and Outlook

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3 Highlights

GOALS OUTPERFORMED

• 4Q07 results above initial targets

• Total gross revenues increased 26.9% - Domestic market 39.3%

• EBITDA increased 73.9%

STRATEGIC PLAN INITIATED

• Price repositioning for Hering brand – larger product offer

• Marketing – New campaign

• Distribution chain – owned, franchised and multi-brand stores network expansion

• Own brands – exports focus on Hering, PUC and dzarm. brands

CAPEX AND CAPITAL STRUCTURE

• Capex of R$ 10.3 millions in 4Q07

• Net cash balance of R$ 33.4 millions

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4 4 AGENDA:

• Highlights

• Operational Performance

• Stock Market

• Business Strategy and Outlook

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5

35.9%

39.3%

26.9%

Domestic market

Exports

109.8 139.4 GROSS REVENUE BY MARKET

39.5

64.8 63.0

52.2

4Q06 4Q07

67.2

97.7 15.3

11.2

11.5

10.3

3.3

3.0

4Q06 4Q07

Per Brand Per Channel

EXPORTS

127.8

11.9%

36.4%

9.0%

45.3%

PUC Dzarm Other 91.7

Franchise/

Owned Stores Multi- brand stores 20.6%

64.0%

Hering

127.8 91.7

North America

2.7 3.6 11.2

4.2 2.0 1.8

2.0

1.00.7 0.3

4Q06 4Q07

4.3 4.1

7.5 13.8

4Q06 4Q07

Private Label x Own brands Destination

Mercosul LatAm Europe Other

DOMESTIC MARKET

46.1% Private

Label

Own brands 18.1

11.6

2.8%

35.9%

18.1

11.6

Gross Revenues - R$ MM

91.7 127.8 11.6

18.1

4Q06 4Q07

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6 50.2

34.1 3.2

1.2 44.5%

40.3%

4Q06 4Q07

4.2 pp

Gross Profit and Gross Margin

62.5%

47.2%

37.8%

37.3

51.4

140.7 119.4

12.0 4.6

39.4%

39.8%

2006 2007

0.4 pp

61.7%

17.8%

10.6%

131.4 145.3

Exports

Domestic market

22.7 13.0

19.6%

14.1%

4Q06 4Q07

51.1 48.8

13.8%

14.8%

2006 2007

4.7%

1.0 pp

73.9%

5.5 pp

Adjusted EBITDA and EBITDA Margin

Gross Profit and Adjusted EBITDA - R$ MM

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Hering PUC Foreign Stores chain evolution

Stores and Expansion Project

39 19 44

23

181 151

2006 2007

Goal: 172 248

209

151 181

224

325

277

141 156

188

226

10 25 274

36

51

2006 2007 2008 Plan 2009 Plan 2010 Plan

Franchise Own stores 53

43

48

Hering Store expansion plan

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8 Distribution Channels in Brazil

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9 Status of Franchise Store Opening Plan for 2007

Status 2007

17 Opened

Current franchise

State – City Location Status Date Franchise

SP - São Paulo Rua Vieira de Morais Opened mar/07

SP - São Paulo Al. Nhambiquaras Opened may/07

BA - Salvador Salvador Shopping Opened may/07

RS - Porto Alegre Rua 24 de Outubro Opened jul/07

SP - Guarujá Shopping La Plage Opened sep/07

SP - S. J. Campos Shopping Vale Sul Opened oct/07

PR - Foz do Iguaçu Shopping Cataratas JL Opened oct/07

SP - S. J. Rio Preto Shopping Plaza Avenida Opened nov/07

MG - Araxá Rua Capitão José Porfírio Opened nov/07

SC - Florianópolis Shopping Itaguaçu Opened nov/07

SP - São Paulo Rua Carlos Weber Opened dec/07

GO - Ap. de Goiânia Buriti Shopping Opened dec/07

SP - Marília Shopping Aquarius Opened dec/07

SP - Rio Claro Shopping Rio Claro Opened dec/07

RS - Porto Alegre Shopping Total Opened dec/07

RN - Natal Midway Mall Opened dec/07

SP - Guarujá Shopping Enseada II Opened dec/07

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10 Status of Owned Store Opening Plan for 2007

Status 2007

13 Opened

2 Transfered

State - City Location Status Date

SC - Florianópolis Shp Iguatemi Santa Mônica Opened jun/07

RJ - Rio de Janeiro Norte Shopping Opened aug/07

RJ - Rio de Janeiro Rio Design Barra Opened aug/07

MG - Belo Horizonte Diamond Mall Opened sep/07

PR - Curitiba Shopping Estação Opened oct/07

SP - São Paulo Shop. Market Place Opened oct/07

SC - Balneário Camboriú Balneário Camboriú Shp. Opened oct/07

RJ - Rio de Janeiro Ipanema (Visc. de Pirajá) Opened nov/07

SP - São Paulo Santana Parque Shopping Opened nov/07

SP - São Paulo Shopping Santana (Transf) Transfered nov/07

SC - Balneário Camboriú Avenida Brasil (Transf.) Transfered nov/07

SP - Guarulhos Shopp. Intern. Guarulhos Opened nov/07

RJ - Rio de Janeiro Rua da Quitanda Opened dec/07

SP - São Paulo Shopping Aricanduva Opened dec/07

SP - São Paulo Avenida Paulista Opened dec/07

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11 Stores performance

Hering Store performance 4Q07 Chg. 2007 Chg.

Number of stores 181 20% 181 20%

Franchised 156 11% 156 11%

Owned 25 127% 25 127%

Stores revenues (R$ thous.) 107,360 47% 276,072 27%

Same Store Sales growth 29% - 18% -

Sales area in m² 24,106 15% 24,106 15%

Sales per m² (R$) 4,619 32% 11,452 11%

Services 1,380,554 56% 3,352,182 25%

Garments sold 3,303,859 62% 7,972,003 27%

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12 Capex (R$ MM)

Stores Production IT

Other

25.3

8.4 0,0 8.4 4.8 0.5

4.7

10.3 11.8 0

5 10 15 20 25

4Q06 4Q07 2006 2007

25.3

40.0 5.4 8.4

2005 2006 2007 2008

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13 Debt

* Ebitda - last 12 months

Net Debt / EBITDA

Short term 59%

Long term 41%

Short term X Long term

Net Debt/EBITDA*

Net Debt (R$ millions)

Total Debt = R$ 124.8 millions

201

(33) 185

3.8

-0.6 4.6

2005 2006 2007

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14 14 AGENDA:

• Highlights

• Operational Performance

• Stock Market

• Business Strategy and Outlook

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15 Capital Markets

Cia Hering vs. Ibovespa Base 100 = 12/28/2006

141.3 214.3

12/28/06 3/28/07 6/28/07 9/28/07 12/28/07

IBOVESPA HGTX3

Number of Trades 379 5,709

1406%

704 18,483

2525%

Participation in Trading Sessions - % 83.1% 100.0%

17 p.p.

62.2% 95.9%

34 p.p.

Quantity Traded - 000 801 7,338

816%

1,558 31,835

1943%

Volume Traded - R$ 000 3,119 80,454 2479% 5,658 324,916 5643%

Share Price - R$ (¹) - -

-

4.85 10.4

114%

Total Shares Outstanding - 000 - -

-

33,095 53,928 63%

Market Cap - R$ MM (¹) - -

-

162,161 566,234 249%

(¹) year-end

4Q06 4Q07

Chg. Chg.

Indicators - HGTX3 2006 2007

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16 16 AGENDA:

• Highlights

• Operational Performance

• Stock Market

• Business Strategy and Outlook

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17 Outlook and Strategy

¾Hering Store credit card launch in Jan/08

¾

Consumer credit – increase in purchase power

¾

Larger wage-class range – wider target audience

¾

Higher average ticket

¾

Financial products revenues

¾Expansion of Hering Store chain

¾

224 stores by year-end and 325 by the end of 2010

¾Product launch

¾

Mix optimization

¾

Higher marketing investments

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18 18 Investor Relations Team

Fabio Hering – Deputy-CEO and IR Director Vilmar da Costa – CFO

Karina Koerich – IR Manager Phone +55 (47) 3321-3469 e-mail: ri@heringnet.com.br

Investor Relations Consulting Firm

FIRB – Financial Investor Relations Brasil Phone: +55 (11) 3897-6857

e-mail: eduardo.campos@firb.com