Exhibit 99.1

[LEVI STRAUSS & CO. LETTERHEAD]

JOHN ANDERSON

PRESIDENT AND

CHIEF EXECUTIVE OFFICER

December 18, 2006

Dear Hans,

We are pleased to present you with this special award of $600,000 (gross) in recognition of your outstanding performance and to fulfill commitments made to you at your time of hire regarding your long-term incentive arrangements.

Regards,

/s/ John Anderson

cc: Pat House
Chair, Human Resources Committee