Notes to the consolidated financial statements of DOUGLAS HOLDING AG for the fiscal year 2006/07

1. GENERAL PRINCIPLES

The consolidated financial statements as of September 30, 2007 of the retailing group DOUGLAS HOLDING AG, which is based in Hagen, Germany, and its subsidiaries have been prepared according to International Financial Reporting Standards (IFRS), taking into account all of the standards and interpretations for which application is mandatory that applied on the balance sheet date.

The financial statements of the German and foreign subsidiaries included in the consolidated financial statements have been prepared in a uniform manner according to the classification, accounting and measurement principles stipulated by IFRS. Carrying and measurement rules which differ from the uniform group principles have been eliminated by preparing separate financial statements (HB II).

All figures in the balance sheet and income statement are in millions of euros
(EUR mill.).