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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. Heringmanagement 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

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

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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%

PUCDzarmOther

91.7

Franchise/Owned Stores

Multi-brand stores

20.6%

64.0%

Hering

127.8

91.7

North America3.62.7

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

LatAmEuropeOther

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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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%131.4 145.3Exports

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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HeringPUCForeign

Stores chain evolution

Stores and Expansion Project

39

4419

23

181151

2006 2007

Goal: 172

248

209

151181

224

325

277

141 156188

226

27410 25

36

51

51

2006 2007 2008 Plan 2009 Plan 2010 Plan

Franchise Own stores

53

43

48

Hering Store expansion plan

7

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Distribution Channels in Brazil

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Status of Franchise Store Opening Plan for 2007

Status 2007

17 Opened

Current franchise

State – City Location Status Date FranchiseSP - 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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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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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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Capex (R$ MM)

Stores

Production

ITOther

25.3

8.4

0,0

8.4

4.80.5

4.7

10.311.8

0

5

10

15

20

25

4Q06 4Q07 2006 2007

25.3

40.0

5.4 8.42005 2006 2007 2008

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Debt

* Ebitda - last 12 months

Net Debt / EBITDA

Short term59%

Long term41%

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

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

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Outlook and Strategy

Hering Store credit card launch in Jan/08

Consumer credit – increase in purchase power

Larger wage-class range – wider target audience

Higher average ticket

Financial products revenues

Expansion of Hering Store chain

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

Product launch

Mix optimization

Higher marketing investments

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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]

Investor Relations Consulting FirmFIRB – Financial Investor Relations BrasilPhone: +55 (11) 3897-6857e-mail: [email protected]