The TMS Group continues its commitment to corporate social responsibility, in both philosophy and actions. Through our longstanding membership within the United Nation's Global Compact, and our alignment with the Business Social Compliance Initiative (BSCI) the TMS Group recognizes and accepts its role and responsibility of corporate citizenship. The company is firmly committed to the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption. In this annual Communication on Progress, we highlight our business processes, philosophy and structured actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. These actions are disseminated to all stakeholders both internal and external to our organization.

Joerg Kornblum
Chief Financial Officer

Principle 1 - Businesses should support and respect the protection of internationally proclaimed human rights
Human Rights: Our Commitment - The TMS Group has robust program and processes that not only protect, but advances workers rights, upholds local laws, and respects human dignity to the fullest extent.

Principle 2 - Businesses should ensure they are not complicit in human rights abuses
Human Rights: Our Commitment - The TMS Group supports and upholds to the fullest extent the protection and enforcement of human rights. This extends to our suppliers and our employees. TMS Group employees who are in constant contact with our suppliers are made aware of their required adherence to the TMS Group policies, and Global Compact Principles, as part of their initial employment agreement and thru refresher training.

Principle 1 - Businesses should support and respect the protection of internationally proclaimed human rights
Processes and Systems:

This included the establishment of verifiable and transparent standards. These standards are embodied in our adoption of the Business Social Compliance Initiative (BSCI) and the inclusion of the UN Global Compact's 10 guiding principles into our company culture and our Business Standards which are endorsed by all of our suppliers.These standards include but not limited to:

(1) Adherence to local laws
(2) Workplace safety and health standards are maintained
(3) Labor collective bargaining and freedom of associated is protected
(4) Child labor and forced labor are eliminated from the supplier network
(5) Non-discriminatory practices are in place in al aspects of the supply chain

Actions implemented in the last year / planned for next year

The cornerstone of our efforts are centered on continuous education and training of both our supply chain partners and internal staff. For 2011 we achieved our goal of 100% of our social compliance officers attaining SA 8000 lead auditor status. In addition, we have continued our surveillance audits process and began to include second-tier authorized supplier within our audit processes, which was part of planned progresive approach for 2011 and 2012. TMS continues to conduct continuous education and training delivered for our suppliers thoughextensive partnerships with global 3rd party organizations such as SGS, and Intertek Services. This is part of an on-going effort.

Principle 2 - Businesses should ensure they are not complicit in human rights abuses
Processes and Systems:

Our TMS Group Business Standards are executed with 100% of suppliers/factories within our network, prior to commencing any business relationship. Furthermore, we have re-engaged suppliers with a follow-up annual signing/execution of these initial agreements. These agreements remain an integral part of a parallel process which consists of social compliance and verification audits.

Actions implemented in the last year / planned for next year

BSCI framework has been adopted and implemented as our corporate standard and overall program.Quarterly supplier education and training remains a key component of this process for 2011/2012.

Principle 1 - Businesses should support and respect the protection of internationally proclaimed human rights
Measurement of outcomes:

For calendar year 2011, we achieved 86% passing for BSCI audits which is progressing towards our goal of 90% success rate during the initial audit process.

Principle 2 - Businesses should ensure they are not complicit in human rights abuses
Measurement of outcomes:

In 2011, the TMS group continued a holistic approach incorporating the combination of monitoring audits, training and education, to ensure adherence to established standards have been maintained through the supplier network. There have been zero cases prior to participation in the Global Compact, and since our affiliation in 2005. This is validated through the transparent process of independent third party regulatry auditors.

Principle 3 - Businesses should uphold freedom of association & effective recognition of the right to collective bargaining
Labor Rights : Our Commitment - The TMS Group’s commitment, and polices against anti-labor practices are clearly stated in our Business Standards, internal audit processes with suppliers, and the adopted BSCI Code of Conduct, that all suppliers must sign and adhere too.

Principle 4 - The elimination of all forms of forced and compulsory labor
Labor Rights: Our Commitment - The TMS Group’s commitment, and polices against forced labor practices are clearly stated in our Business Standards, internal audit processes with suppliers, and the adopted BSCI Code of Conduct, that all suppliers must sign and adhere too. Mandatory supplier qualification for BSCI further ensures adherence.

Principle 5 - The effective abolition of child labour
Labor Rights: Our Commitment - The TMS Group’s commitment, and polices against child labor practices are clearly stated in our Business Standards, internal audit processes with suppliers, and the adopted BSCI Code of Conduct, that all suppliers must sign and adhere too. Mandatory supplier qualification for BSCI further ensures adherence.

Principle 6 - Eliminate discrimination in respect of employment and occupation
Labor Rights: Our Commitment - The TMS Group’s commitment, and polices against discriminatory employment practices based upon, race, gender, or religion are clearly stated in our Business Standards, internal audit processes with suppliers, and the adopted BSCI Code of Conduct, that all suppliers must sign and adhere too.

Principle 3 - Businesses should uphold freedom of association & effective recognition of the right to collective bargaining
Processes and Systems:
The adoption of the BSCI standard and utilization of our TMS Compliance system serves for surveillance and verification of suppliers.

Actions implemented in the last year / planned for next year

Our actions are part of a continuous improvement process and executed under the TMS Groups Compliance sytem. Continuations of unannounced audits, training and education, supported by collaborative relationships with our suppliers have ensured there are no violations or abuses in this area. This is further supported by transparent third party regulatory audits.

Principle 4 - The elimination of all forms of forced and compulsory labour
Processes and Systems :
The TMS Group Compliance and BSCI audit standards are implemented through all regions.

Actions implemented in the last year / planned for next year

Our actions are part of a continuous improvement process and executed under the TMS Groups Compliance Program. Continuations of unannounced audits, training and education, supported by collaborative relationships with our suppliers have ensured there are no violations or abuses in this area. This is further supported by transparent third party regulatory audits.

Principle 5 - The effective abolition of child labour
Processes and Systems:
The TMS Group Compliance and BSCI audit standards are implemented. Suppliers submit to announced and unnaounced audits by the TMS Group and external third party entities. The his approach preserves the integrity of the audit process through transparent structure.

Actions implemented in the last year / planned for next year

Our actions are part of a continuous process and executed under the TMS Groups Compliance Program. Continuations of unannounced audits, training and education, supported by collaborative relationships with our suppliers have ensured there are no violations or abuses in this area. This is further supported by transparent third party regulatory audits.

Principle 6 - Eliminate discrimination in respect of employment and occupation
Processes and Systems:
This is an integral part of our TMS Group Business Standards, which are executed with all suppliers, before business is commenced. These standards were reviewed in 2011 to reflect significant changes in business and social compliance policies and procedures. This review ensures TMS Group standards meet or exceed local/regional and international laws.

Actions implemented in the last year / planned for next year

Our actions are part of a continuous process and executed under the TMS Groups Compliance Program. Continuations of unannounced audits, training and education, supported by collaborative relationships with our suppliers have ensured there are no violations or abuses in this area. This is further supported by independent and transparent third party regulatory audits

Principle 3 - Businesses should uphold freedom of association & effective recognition of the right to collective bargaining
Principle 4 - The elimination of all forms of forced and compulsory labour
Principle 5 - The effective abolition of child labour
Principle 6 - Eliminate discrimination in respect of employment and occupation

Measurement of outcomes

Zero instances of infractions in these areas from our suppliers. There have been zero cases prior to participation in the Global Compact, and since our affiliation in 2005. Furthermore, independent third party entities conduct verfication audits of our suppliers, which validates the intregrity of our supply chain and social compliance system.

Principle 7 - Businesses should support a precautionary approach to environmental challenges
Environment: Our Commitment - The TMS Group is committed and proactive in partnering with suppliers to implement measures to improve their environmental sustainability.

Principle 8 - Undertake initiatives to promote greater environmental responsibility
Environment: Our Commitment - The TMS Group is committed to creating greater environmental awareness both within our supplier network and our organization at large.

Principle 9 - Encourage the development and diffusion of environmentally friendly technologies
Environment: Our Commitment - The TMS Group continues to work closely with strategic suppliers to provide access and education regarding "green friendly" technologies that minimize impact upon the environment and reduce operational costs.

Principle 7 - Businesses should support a precautionary approach to environmental challenges
Processes and Systems:
TMS Group internal and BSCI audit verification processes require suppliers to provide environmental risk assessments and minimizing measures. This risk assessment is supplemental to local law requirements for suppliers.

Actions implemented in the last year / planned for next year

In 2011 we achieved our goal or supplier education and training for environmental awareness for 75% of our supply network. For 2012, this goal will be extended to 95%.

Principle 8 - Undertake initiatives to promote greater environmental responsibility
Processes and Systems:

In 2011 our "Green Campaign" within all regional offices completed its second year, with empircal data sugeesting a 20% reduction in energy consumption in th workplace.

Actions implemented in the last year / planned for next year

The 2012 goal will include challenges to our suppliers for development of similiar efforts for awareness and reduction of energy consumption.

Principle 9 - Encourage the development and diffusion of environmentally friendly technologies
Processes and Systems:

Continue to create supplier awareness and generate programs that promote the usage of alternatives to fossil fuel sources, and the reduction of energy consumption within supplier operations.

Actions implemented in the last year / planned for next year

Pilot plan/partenr was developed in 2011, with the goal of 2012 to add 4 addtional supplier in the pilot program.

Principle 7 - Businesses should support a precautionary approach to environmental challenges
Measurement of outcomes:

In 2011, again 100% of suppliers met or exceeded local environmental standards.

Principle 8 - Undertake initiatives to promote greater environmental responsibility
Measurement of outcomes:

In 2011, the second year of our "Green Campaign” a measured reduction of 20% energy consumption has been achieved. For 2012 we are challenging suppliers in the development of their own programs.

Principle 9 - Encourage the development and diffusion of environmentally friendly technologies

Measurement of outcomes:

Several key suppliers have introduced new production processes and environmentally friendly chemical alternatives in the finishing and laundry process of garment production cycles. With the monitored success of this pilot program, introduction throughout the supplier network is forthcoming for 2012.

Principle 10 - Businesses should work against all forms of corruption, including extortion and bribery.
Anti-Corruption: Our Commitment - The TMS Group’s commitment, and polices against all forms of corruption are clearly stated in every aspect of the organization beginning with employment terms for hew-hires, and is extended to our Business Standards, internal audit processes with suppliers, and the adopted BSCI Code of Conduct, that all suppliers must sign and adhere to. The TMS Group has a zero tolerance policy for this type of activity.

Principle 10 - Businesses should work against all forms of corruption, including extortion and bribery.
Processes and Systems:

The TMS Group Compliance and BSCI audit standards are implemented and proactively address this issue.

Actions implemented in the last year / planned for next year

Our actions are part of a continuous process and executed under The TMS Groups Compliance Program. Continuations of unannounced audits, training and education, supported by collaborative relationships with our suppliers have ensured there are no violations or abuses in this area. This is further supported by transparent third party regulatory audits.

Principle 10 - Businesses should work against all forms of corruption, including extortion and bribery.
Measurement of outcomes:

The year 2011 marked a continuation of zero instances of infractions or allegations in these areas from our employees and suppliers.