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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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AGENDA: • Highlights• Operational Performance• Stock Market• Business Strategy and Outlook

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Highlights

BEGINNING OF STRATEGIC PLAN IMPLEMENTATION IN AUGUST/07

• Hering brand price repositioning

• Opening of five stores in 3Q07 - four under the Hering Store flag and one PUC store

EARNINGS

• Gross revenue from domestic market sales up 22.2% in 3Q07 (Hering brand up 25.1% and PUC brand up

27.3%)

• Same-store sales at owned Hering Store up 30.6% and at the franchise stores up 20.7%

• Gross profit in the domestic market up 15.4%

• EBITDA in August-September up 17% over the same period in 2006 (-10.7% in 3Q07)

CAPEX AND CAPITAL STRUCTURE

• R$ 8.0 million in investments in 3Q07

• Net cash of R$ 42.2 million

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AGENDA: • Highlights• Operational Performance• Stock Market• Business Strategy and Outlook

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55.5

69.4

12.3

9.6

11.2

10.6

2.9

2.7

3Q06 3Q07

6.55.8

7.2

4.2

2.2

2.60.5

0.41.3

0.9

3Q06 3Q075

Gross Revenue - R$ MM

Per Brand Per ChannelDOMESTIC MARKET

GROSS REVENUE BY MARKET

Private Label x Owned Brands Exports by Region

Mercosur

North Am.

Latin Am.EuropeOthers

EXPORT MARKET

78.4

5.7%

27.3%

7.4%

25.1%

Hering

PUCDzarmOthers

95.8

29.139.1

56.7

49.3

3Q06 3Q07

Franchise/Own Stores

Retail15.0%

34.4%

78.4

95.8

2.84.6

9.9

14.2

3Q06 3Q07

30.3%PrivateLabel

OwnedBrands

14.6

17.0

64.3%

17.0

14.614.1%17.0 14.5

95.8

78.4

3Q06 3Q07

22.2%

14.6%

15.6%

DomesticMarket

ExportMarket

95.4

110.4

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10.8 12.1

11.7%14.9%

3Q06 3Q07

10.7%

3.2 pp

10.08.6

15.5%15.2%

Aug-Sep/06 Aug-Sep/07

17.0%

0.3 pp

6

Gross Profit and Adjusted EBITDA - R$ MM

Adjusted EBITDA and EBITDA Margin

Gross Profit and Gross Margin

24.8 20.9 2.4

1.3

40.5%41.4%

Aug-Sep/06 Aug-Sep/07

0.9 pp

14.7%

18.7%

12.1%23.326.1

33.7 29.2 4.1 1.4

37.9%41.2%

3Q06 3Q07

3.3 pp

65.9%

15.4%

5.2%33.3 35.0ExportMarket

DomesticMarket

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Stores and Expansion Project

147 160

39

42

3942

19

23

1923

182151

2006 2007 9M06 9M07

HeringPUCExports

Number of Stores

7

Sep-06 Sep-07 2006 2007 2008 2009 2010Hering - Own Store 8 14 10 25 44 51 51Hering - Franchise 139 146 141 157 180 226 274Sub-total 147 160 151 182 224 277 325PUC - Own Store 1 2 1 2 2 2 2PUC - Franchise 38 40 38 40 40 40 40Sub-total 39 42 39 42 42 42 42Brazil 186 202 190 224 266 319 367Overseas - Franchise 19 23 19 23 23 23 23

Total 205 225 209 247 289 342 390

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Distribution Channels in Brazil

• 160 Hering Stores

• 42 PUC Stores

• 7.468 Multi-brand Stores

(Hering brand)

8

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Status of Franchise Store Opening Plan for 2007

State – City Location Status Expected Date Franchise

SP - São Paulo Rua Vieira de Morais Opened mar/07SP - São Paulo Al. Nhambiquaras Opened may/07BA - Salvador Salvador Shopping Opened may/07RS - Porto Alegre Rua 24 de Outubro Opened jul/07SP - Guarujá Shopping La Plage Opened sep/07SP - S. J. Campos Shopping Vale Sul Opened oct/07PR - Foz do Iguaçu Shopping Cataratas JL Opened oct/07SP - S. J. Rio Preto Shopping Plaza Avenida Confirmed nov/07SP - São Paulo Rua Diogo de Faria Confirmed nov/07SP - São Paulo Rua Carlos Weber Confirmed nov/07MG - Araxá Rua Capitão José Porfírio Confirmed nov/07GO - Aparecida de Goiânia Buriti Shopping Confirmed nov/07SP - Marília Shopping Aquarius Confirmed nov/07SP - Rio Claro Shopping Center Rio Claro Confirmed nov/07RS - Porto Alegre Shopping Total Confirmed nov/07PI - Teresina Riverside Shopping Confirmed nov/07SC - Florianópolis Shopping Itaguaçu Confirmed nov/07RN – Natal Midway Mall Confirmed nov/07

7 Opened

11 Confirmed

Status 2007

CurrentFranchisee

New Franchisee

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Status of Owned Store Opening Plan for 2007

State – City Location Status Expected Date

SC - Florianópolis Shopping 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 Shopping Opened oct/07

RJ - Rio de Janeiro Rua Visconde de Pirajá (Ipanema) Confirmed nov/07

SP - São Paulo Santana Parque Shopping Confirmed nov/07

RJ - Rio de Janeiro Rua da Quitanda Confirmed nov/07

RJ - Rio de Janeiro Shopping Aricanduva Confirmed dec/07

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

SP - São Paulo Avenida Paulista Confirmed dec/07

SP - São Paulo Shopping Santana (Transference) Confirmed nov/07

SC - Balneário Camboriú Avenida Brasil (Transference) Confirmed nov/07

7 Opened

6 Confirmed

Status 2007

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Franchises – Domestic Market Indicators

Hering Store 3Q06 3Q07 chg. 9M06 9M07 chg.Number of Store 148 160 8% 148 160 8%

Franchises 139 146 5% 139 146 5%Own Stores 9 14 56% 9 14 56%

Hering Chain Revenue - R$/thousand 46,577 59,004 27% 143,441 167,830 17%Same Store Sales - 21.6% - 12.8%Sales Area - m² 20,397 21,669 6% 20,397 21,669 6%Revenue per m² - R$ 2,283 2,723 19% 7,032 7,745 10%Customer Servicing 580,001 718,962 24% 1,796,824 1,971,628 10%Items 1,352,039 1,741,410 29% 4,220,611 4,668,144 11%Average Ticket - R$ 80.30 82.07 2% 79.83 85.12 7%

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1.3

8.0

3.7

6.8

3.2

2.6

2.6

3Q06 3Q07 9M06 9M07

5 5,48,6

20

63

2004 2005 2006 2007 E 2008 E

12

Capex – R$ MM

Stores

IT

Industry

Other

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Debt Profile

Short Term85.0

Long Term63.2

185 188201

(42)

4.6

(1.7)

3.73.5

2005 2006 Sep/06 *

* Last 12 months EBITDA

Net Debt/EBITDA

By Maturity - R$ MM

Sep/07*

Net Debt - R$ MM

Net Debt/EBITDA*

13

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AGENDA: • Highlights• Operational Performance• Stock Market• Business Strategy and Outlook

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Stock Market

Number of Trades 325 12,780 3832%Participation in Trading Sessions - % 55.6% 94.6% 39.0 p.p. Quantity Traded - 000 758 24,497 3132%Volume Traded - R$ 000 2,539 244,461 9528%Share Price - R$ (¹) 3.60 10.39 189%Total Shares Outstanding - 000 33,095 53,928 63%Market Cap - R$ MM (¹) 119,138 560,302 370%(¹) 09/28/2007

Indicators - HGTX3 9M06 9M07 Chg.

50

100

150

200

250

300

350

Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07

IBOVESPA HGTX3

Cia Hering ON versus Ibovespa(09/29/2006 = 100 basis)

60,465

10.39HGTX3 + 189 %

IBOVESPA + 66 %

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AGENDA: • Highlights• Operational Performance• Stock Market• Business Strategy and Outlook

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Business Strategy and Outlook

Launching of Hering Store card

Visa flag

Many benefits to consumers

Strategic tool for increasing sales at the Hering Store chain

Increase in number of Hering Stores

182 stores by year end, up 10 from initial plan for 2007

Hiring of new executives

An executive for Product and Marketing, with wide experience in the sector

An executive for the Hering Store card operations, with wide experience in the financial market

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Investor Relations Consulting FirmFIRB – Financial Investor Relations BrasilPhone: +55 (11) 3897-6405e-mail: [email protected]

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Investor Relations TeamFabio Hering – Deputy-CEO and IR DirectorVilmar da Costa – CFOKarina Koerich – IR ManagerPhone +55 (47) 3321-3469 e-mail: [email protected]