Oakley Presents at BancBoston Robertson Stephens Conference; Provides Update on Products, Brand Diversification

Business Wire, Oct 14, 1998

FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--Oct. 14, 1998--At the BancBoston Robertson Stephens Lifestyle, Specialty Retailing and Restaurants Conference yesterday in New York, Oakley Inc. (NYSE:OO) provided some insight into its evolution as a world brand, including updates on eyewear, footwear and the imminent launch of its watch later this year.

"With the company no longer constrained to optics, Oakley is applying its design and technological innovations to additional product categories, with growing brand recognition around the globe," said Link Newcomb, Oakley's chief executive officer. "Importantly, we are demonstrating our ability to expand into footwear, technical apparel and watches, while continuing to introduce innovative eyewear and reinforcing Oakley's leadership position in the premium sunglass market."

Newcomb also commented that the company's 1998 strategic product introductions resulted in new eyewear models contributing over 20% to the company's sales during the summer selling season. As an example of the performance of new products at retail, Newcomb said that two of the new a Wire(TM) styles were the top two best selling new models across all brands at Sunglass Hut over the summer.

The company reiterated its focus to lead the market with innovation-driven eyewear, mentioning that additional new eyewear launches are planned for 1999. As part of this focus, Newcomb emphasized the company's efforts to raise awareness of its proprietary polarized lens technology. Oakley said it expects its current polarized line to be significantly expanded in the next few months when polarized lenses will be available in most of its frames. In addition to an increase in product offerings, the company is also expanding its retail distribution to capitalize on the demand for polarized products in the high-end outdoor and marine market.

Since the release of Oakley's footwear in late June, the company has shipped the original high-top model, offered in silver, black and yellow, and a low-top version, now available in black and yellow, and next month, in white. With recent production rates increasing, the company has begun to add new retailers for the footwear line and now has approximately 300 footwear retailers, up from 200 at the time of the launch. Oakley footwear is also available to purchase through the company's online store front, the O Store, at www.oakley.com. Oakley said a second performance footwear model is due to be released early next year.

Further leveraging its creative power, the company said, toward the end of the year, it expects to ship its newest invention, a sculptural X Metal(TM) watch, powered by proprietary World Movement(TM), and has appointed a brand manager for this new category. The company intends to distribute the watch through an exclusive network of quality specialty retailers, including select jewelers, as well as through a limited number of its existing retailers.

The company will report 1998 third quarter financial results on Oct. 21, 1998.

Oakley -- a world brand.

This news release contains certain statements of a forward-looking nature. Such statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, including risks related to the dependence on sales to Sunglass Hut; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; the acceptance in the marketplace of new products; the ability to source raw materials at favorable prices to the company; currency fluctuation; and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended Dec. 31, 1997. The company undertakes no obligation to update this forward-looking information.