Alvarez & Marsal

For more than 150 years, a forward-looking vision has propelled Levi Strauss & Co. into the stratosphere of the world's great brands. It was in that spirit that Levi Strauss & Co.'s board and current management - recognizing that its market-leading position and overall performance had begun to ebb - turned to Alvarez & Marsal. Assuming select strategic consulting and interim management roles, including Chief Financial Officer, Alvarez & Marsal worked closely with management to identify opportunities to strengthen the company on many levels. Initiatives included making the company more cost competitive, stabilizing revenue and profit growth, strengthening the financial organization, rationalizing product lines, streamlining back-end functions and accelerating the transition from manufacturing to sourcing. Results were evident within months. First quarter 2004 performance was better than expected. EBITDA increased, reflecting higher sales, reduced dilution, lower product costs and lower selling, general and administrative expenses. Net debt decreased ahead of predictions. Bondholders recognized the progress with bond prices trading up significantly. Operationally and financially, Levi Strauss & Co. is on the mend.