Oakley Promotes Cliff Neill to Newly Created Position of Vice President of U.S. Sales; 17-Year Veteran to Head U.S. Sales

Business Wire, Dec 20, 2002

Business Editors

FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--Dec. 20, 2002

Oakley Inc. (NYSE:OO) today announced the promotion of Cliff Neill to vice president of U.S. Sales, a newly created position.

Neill, 43, brings more than 17 years of Oakley experience to the position in which he will be responsible for all aspects of the company's domestic sales operation. He has previously held positions with Oakley as regional sales manager, national account manager and national sales director.

"Cliff has been with Oakley for more than 17 years and recently has led the sales organization through some difficult times," commented Chief Executive Officer Jim Jannard.

"Cliff has done an incredible job of implementing the Oakley Premium Dealer (OPD) program initiated last year and has been critical to the strategic deployment of our distribution strategies. We look forward to his many contributions as we continue to grow," Jannard concluded.

Neill holds a degree in finance and banking from the University of Missouri.

About Oakley Inc.

Oakley: a world brand, driven to ignite the imagination through the fusion of art and science. Building on its legacy of innovative, market-leading, premium sunglasses, the company also offers an expanding line of premium performance footwear, apparel, accessories, watches and prescription eyewear to consumers in more than 70 countries.

Trailing 12-month revenues through Sept. 30, 2002, totaled $476.9 million and generated net income of $43.4 million -- a 9.1 percent net margin. Oakley news releases, SEC filings and the company's annual report are available at no charge through the company's Web site at www.oakley.com.

Safe Harbor Disclaimer

This news release contains certain statements of a forward-looking nature. Such statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including: risks related to the company's ability to manage rapid growth; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; the ability of those manufacturing partners and the company's internal production operations to increase production volumes on raw materials and finished goods in a timely fashion in response to increasing demand and enable the company to achieve timely delivery of finished goods to its retail customers; the ability to provide adequate fixturing to existing and future retail customers to meet anticipated needs and schedules; the dependence on eyewear sales to Sunglass Hut which is owned by a major competitor and, accordingly, could materially alter or terminate its relationship with the company; the company's ability to expand distribution channels and its own retail operations in a timely manner; unanticipated changes in general market conditions or other factors, which may result in cancellations of advance orders or a reduction in the rate of reorders placed by retailers; continued weakness of economic conditions could continue to reduce or further reduce demand for products sold by the company and could adversely affect profitability, especially of the company's retail operations; further terrorist acts, or the threat thereof, could continue to adversely affect consumer confidence and spending, could interrupt production and distribution of product and raw materials and could, as a result, adversely affect the company's operations and financial performance; the ability of the company to integrate acquisitions without adversely affecting operations; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; the acceptance in the marketplace of the company's new products and changes in consumer preferences; reductions in sales of products, either as the result of economic or other conditions or reduced consumer acceptance of a product, could result in a buildup of inventory; the ability to source raw materials and finished products at favorable prices to the company; the potential effect of periodic power crises on the company's operations including temporary blackouts at the company's facilities; foreign currency exchange rate fluctuations; earthquakes or other natural disasters concentrated in Southern California where substantially all of the companies operations are based; the European restructuring charge is based on management's estimates of expected costs and actual results may vary; 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, 2001, and other filings made periodically by the company. The company undertakes no obligation to update this forward-looking information.