Mark Parker, Nike, Inc. President and Chief Executive Officer, said, “Our second quarter was another great one, and it illustrates the ability of our portfolio to deliver consistent, profitable growth. Our strategy for continued growth is very clear – commit totally to the consumer, deliver innovative and relevant product, and focus our execution and discipline on those parts of the business that offer the greatest growth opportunity.”(a)

Futures Orders

The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from December 2007 through April 2008, totaling $6.5 billion, 13 percent higher than such orders reported for the same period last year. Changes in currency exchange rates increased reported orders growth by 3 percentage points.(a)

By region, futures orders for the U.S. increased 1 percent; Europe (which includes the Middle East and Africa) increased 19 percent; Asia Pacific grew 24 percent; and the Americas increased 21 percent. Changes in currency exchange rates increased reported futures orders growth in Europe by 6 percentage points and by 4 percentage points in Asia Pacific and in the Americas.(a)

Regional Highlights

U.S.

During the second quarter, U.S. revenues increased 7 percent to $1.5 billion versus $1.4 billion for the second quarter of fiscal 2007. U.S. athletic footwear revenues increased 12 percent to $983.3 million; apparel revenues decreased 3 percent to $461.4 million; and equipment revenues increased 9 percent to $68.7 million. U.S. pre-tax income increased 9 percent to $306.6 million from $282.1 million a year ago.

Europe

Second quarter revenues for the European region grew 18 percent to $1.2 billion from $1.0 billion for the same period last year. Changes in currency exchange rates increased revenue growth by 10 percentage points. Footwear revenues were up 19 percent to $646.7 million. Apparel revenues increased 15 percent to $485.9 million and equipment revenues increased 24 percent to $91.6 million. Pre-tax income increased 37 percent to $230.2 million.

Asia Pacific

In the second quarter, revenues in the Asia Pacific region grew 17 percent to $674.6 million compared to $578.2 million a year ago. Changes in currency exchange rates increased revenue growth by 5 percentage points. Footwear revenues were up 20 percent to $334.1 million, apparel revenues increased 15 percent to $289.2 million and equipment revenues grew 2 percent to $51.3 million. Pre-tax income increased 19 percent to $174.1 million.

Americas

Revenues in the Americas region increased 19 percent to $313.6 million from $262.5 million in the second quarter of fiscal 2007. Currency exchange rates contributed 5 percentage points to this growth rate. Footwear revenues were up 16 percent to $214.3 million, apparel revenues increased 31 percent to $73.2 million and equipment revenues grew 20 percent to $26.1 million. Pre-tax income was up 12 percent to $68.7 million.

Other Businesses

For the first quarter, Other business revenues, which include Converse Inc., NIKE Golf, Cole Haan Holdings Incorporated, NIKE Bauer Hockey Corp., Hurley International LLC and Exeter Brands Group LLC, grew 16 percent to $613.7 million from $526.8 million last year. Pre-tax income increased 31 percent to $70.8 million for the quarter.

Following a strategic review of the company’s affiliate brands portfolio, Nike management determined that Nike Bauer Hockey and the Starter brand did not align with the Company’s long-term growth priorities. On November 15, 2007, the Company announced it had reached a definitive agreement to sell the Starter brand to Iconix Brand Group for $60 million in cash. This transaction was completed on December 17, 2007. The Company is still exploring the sale of the Bauer Hockey business.

On October 23, 2007, the Company announced it had reached an agreement on an all-cash offer to acquire all of the outstanding share capital of Umbro plc at 193.06 pence, which values the company at £285 million or approximately $570 million. The acquisition will significantly expand Nike’s global leadership in football, a key growth category for the Company.

Commenting on these developments, Parker said: “Our focus on prime growth opportunities extends throughout our portfolio of brands. We are confident that our divestiture decisions this quarter are the right ones for Bauer Hockey, for Starter, and for Nike. As for Umbro, it is a brand that has tremendous heritage and respect in global football. We’re very excited about leveraging those connections and bringing them to life in new ways that will reward consumers and strengthen our competitive stance in football around the world.”(a)

Income Statement Review

Gross margins were 44.3 percent compared to 43.4 percent for the same period last year.

Selling and administrative expenses were 32.9 percent of second quarter revenues, compared to 32.0 percent last year.

The effective tax rate for the second quarter was 30.3 percent. This was a higher rate than last year’s second quarter tax rate of 27.2 percent, which included a retroactive benefit from an international tax agreement.

Balance Sheet Review

At quarter end, global inventories stood at $2.2 billion, an increase of 3 percent from November 30, 2006. Cash and short-term investments were $3.1 billion at the end of the quarter, compared to $1.9 billion last year.

Share Repurchase

During the second quarter, the Company purchased a total of 4,807,300 shares for approximately $292.8 million in conjunction with the Company’s four-year $3 billion share repurchase program approved by the Board of Directors in June 2006. As of the end of the second quarter the Company has repurchased a total of 28.6 million shares for approximately $1.4 billion under this program.

NIKE, Inc. based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly owned Nike subsidiaries include Converse Inc., which designs, markets and distributes athletic footwear, apparel and accessories; Cole Haan Holdings Incorporated, which designs, markets and distributes luxury shoes, handbags, accessories and coats; NIKE Bauer Hockey Corp., a leading designer and distributor of hockey equipment; Hurley International LLC, which designs, markets and distributes action sports and youth lifestyle footwear, apparel and accessories; and Exeter Brands Group LLC, which designs and markets athletic footwear and apparel for the value retail channel.

NIKE’s earnings releases and other financial information are available on the Internet at www.nikebiz.com/investors.