Date: Wed, 17 Dec 2003 11:06:32 -0500 Dear Jon Austenaa, Thank you very much for contacting Tommy Hilfiger and for your concern about the Company's position on labor practices. While the Company does not own any manufacturing facilities, our policy regarding labor law violations by a supplier is strong and clear. Tommy Hilfiger Corporation is committed to making certain that the workers in the factories in which its merchandise is manufactured around the world are treated with dignity. We will only do business with suppliers who obey the laws of the countries in which they operate and who comply with the Tommy Hilfiger Supplier Code of Conduct. The Company has a Supplier Monitoring program which includes the use of Verite as an independent third-party auditor to inspect the working conditions of suppliers of Tommy Hilfiger merchandise. Tommy Hilfiger Corporation will take decisive action against any manufacturer that violates our standards including the termination of the business relationship. We will not do any business with any supplier which does not meet these standards, either knowingly or through inadequate monitoring of its subcontractors. We believe these measures demonstrate our continued commitment to conduct our business in accordance with high ethical standards. If you would like us to mail or fax our Supplier Code of Conduct, please feel free to forward your full mailing address or fax number. Also, you can check the "company info" section of our website at http://www.tommy.com for our latest press releases on the subject. We hope to have clarified the Company's position and alleviated your concerns. Feel free to contact us if you should have further questions. Kind regards, Anne D'A. Public Relations http://www.tommy.com Tommy Hilfiger Corporation Supplier Code of Conduct We, at the Tommy Hilfiger Corporation (hereinafter "Tommy Hilfiger"), are proud of our tradition of conducting our business in accordance with the highest ethical standards and in compliance with the laws of the United States and of the countries in which we produce, buy and sell our products. Tommy Hilfiger is committed to legal compliance and ethical business practices in all operations and seeks to do business with suppliers who share that commitment. Tommy Hilfiger actively seeks to engage as its suppliers, companies which offer their workers safe and healthy workplaces. Tommy Hilfiger will not tolerate exploitative or abusive conditions once known. The Tommy Hilfiger Supplier Code of Conduct (hereinafter the "Code of Conduct") defines our minimum expectations. No Code can be all inclusive, but we expect our suppliers to act reasonably in all respects and to ensure that no abusive, exploitative or illegal conditions exist at their workplaces. Tommy Hilfiger requires its suppliers to extend principles of fair and honest dealing to all others with whom they do business, including employees, subcontractors and other third parties. We also require our suppliers to ensure and to certify to us that no abusive, exploitative or illegal conditions exist at the workplaces of their suppliers and subcontractors. Tommy Hilfiger will only do business with suppliers who obey the laws of the country in which they operate and the principles expressed in this Code of Conduct. Tommy Hilfiger will only do business with suppliers who have certified to us that their business practices are lawful, ethical and in compliance with the principles set forth in this Code of Conduct. Moreover, Tommy Hilfiger will only do business with suppliers who have agreed to be subjected to the scrutiny of the Tommy Hilfiger Supplier Monitoring Program under which they will be inspected and evaluated to ensure their compliance with this Code of Conduct. Forced Labor: Tommy Hilfiger will not purchase products or components thereof from suppliers that use forced labor, prison labor, indentured labor or exploited bonded labor, or permit their suppliers to do so. Child Labor: Tommy Hilfiger will not purchase products or components thereof manufactured by persons younger than 15 years of age or younger than the age of completing compulsory education in the country of manufacture where such age is higher than 15. Harassment or Abuse: Tommy Hilfiger suppliers and subcontractors must treat their employees with respect and dignity. No employee shall be subject to physical, sexual or psychological harassment or abuse. Nondiscrimination: Tommy Hilfiger suppliers and subcontractors shall not subject any person to discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin. Health and Safety: Tommy Hilfiger suppliers and subcontractors shall provide a safe and healthy working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of employer facilities. Employers must fully comply with all applicable workplace conditions, safety and environmental laws. Freedom of Association: Tommy Hilfiger suppliers and subcontractors shall recognize and respect the right of employees to freely associate in accordance with the laws of the countries in which they are employed. Wages and Benefits: Tommy Hilfiger suppliers and subcontractors recognize that wages are essential to meeting employees' basic needs. Tommy Hilfiger suppliers and subcontractors shall pay employees at least the minimum wage required by local law regardless of whether they pay by the piece or by the hour and shall provide legally mandated benefits. Work Hours: Tommy Hilfiger suppliers and subcontractors shall not require their employees to work more than the limits on regular and overtime hours allowed by the law of the country of manufacture. Except under extraordinary business circumstances, Tommy Hilfiger suppliers' and subcontractors' employees shall be entitled to one day off in every seven day period. Tommy Hilfiger suppliers and subcontractors must inform their workers at the time of their hiring if mandatory overtime is a condition of their employment. Tommy Hilfiger suppliers and subcontractors shall not compel their workers to work excessive overtime hours. Overtime Compensation: Tommy Hilfiger suppliers' and subcontractors' employees, shall be compensated for overtime hours at such premium rate as is legally required in the country of manufacture or, in countries where such laws do not exist, at a rate at least equal to their regular hourly compensation rate. Contract Labor: Tommy Hilfiger suppliers or subcontractors shall not use workers obligated under contracts which exploit them, which deny them the basic legal rights available to people and to workers within the countries in which they work or which are inconsistent with the principles set forth in this Code of Conduct Legal and Ethical Business Practices: Tommy Hilfiger suppliers and subcontractors must fully comply with all applicable local, state, federal, national and international laws, rules and regulations including, but not limited to, those relating to wages, hours, labor, health and safety, and immigration. Tommy Hilfiger suppliers and subcontractors must be ethical in their business practices. Penalties: Tommy Hilfiger reserves the right to terminate its business relationship with any supplier who violates this Code of Conduct or whose suppliers or subcontractors violate this Code of Conduct. Tommy Hilfiger reserves the right to terminate its business relationship with suppliers who fail to provide written confirmation to Tommy Hilfiger that they have a program in place to monitor their suppliers and subcontractors for compliance with this Code of Conduct. *********** REPLY PARTITION *********** Hello! I'm from Norway and just saw a local broadcast about how some of your clothing products were made. If true, it was produced in Mae Sot in very poor contitions by burmenian refugees. It was apperent the representatives at your main office in New York refused to cooperate. Later your lawyer presented a letter claiming the journalist had refused to show you any "evidence" or information he had. Obviously to me, something is not right, and as every other consumer I have responsibility for what I buy. Can you bring my faith back in Tommy Hilfiger? Hope you understand, Jon Austenaa