Anarchy Announced Nine-Month Results

Gargoyles, Inc. (OTC Bulletin Board: GOYL) today reported operating results for the quarter ended September 30, 1999, and a new licensing agreement with Wrangler Apparel Corp. Gargoyles’ net income was $1.2-million or $.11 per common share for the nine months ended September 30, 1999, compared to a net loss of $13.8-million or $1.77 per share for the same nine-month period in 1998.

For the three month’s ended September 30, 1999, the company’s net loss was $175,000 or $.05 per common share, compared to a net loss of $12-million or $1.54 per common share for the same three-month period in 1998. Gross margin increased to 61.9% in the 1999 quarter from 59.1% in the 1998 quarter, and increased to 59.4% for the nine-month period ended June 30, 1999 from 57.5% for the nine-month period ended September 30, 1998.

As of September 30, 1999, the Company had unused sources of liquidity of $3.4-million, consisting of cash and cash equivalents of $163,000 and borrowings available under its revolving loan of $3.2-million.

Gargoyles has entered into a license agreement with Wrangler Apparel Corp. to design and distribute a line of Wrangler-branded sunglasses. “We are very pleased to be working with a company of the stature of Wrangler Apparel Corp.,” said Gargoyles CEO, Leo Rosenberger. “This new partnership with Wrangler gives our company the opportunity to expand its distribution into the multi-billion dollar western lifestyle markets with one of the nationà'¹s leading brands and allows us to leverage the distribution of our Gargoyles branded products into markets where our Gargoyles brand is also very well known.”

The new Wrangler line will be launched Spring 2000 into western specialty stores and then expanded into other distribution channels.

Gargoyles, Inc., headquartered in Kent, Wash., is a designer and distributor of a broad range of sunglasses and eyewear products marketed under such brand names as Gargoyles Performance Eyewear, Gargoyles Protective Eyewear, Hobie Polarized Sunglasses, Stussy EyeGear, Anarchy and Angel Eyewear, Private Eyes, Tomichi Studio, and now Wrangler.