Rotterdam – February 26, 2002 – Head N.V. (NYSE: HED; VSX: HEAD), a leading global manufacturer and marketer of sports equipment, announced today that for the 3 months ended December 31, 2001, Head had revenues of $128.0 million, income from continued operations before tax and extraordinary items of $12.4 million and net income of $9.9 million, compared with revenues of $130.9 million, income from continued operations before tax and extraordinary items of $13.3 million and net income of $19.2 million for the three months ended December 31, 2000.

For the twelve months ended December 31, 2001, Head had revenues of $392.0 million, income from continued operations before tax and extraordinary items of $14.6 million and a net income of $9.4 million compared with revenues of $398.6 million, income from continued operations before tax and extraordinary items of $24.4 million and net income of $27.8 million for the twelve months ended December 31, 2000. Earnings per share for the twelve month period were $0.25 compared to $0.99 for the same period in 2000.

Johan Eliasch Chairman and CEO commented. “Overall, I would best summarize 2001 as a year in which we took some important steps to position Head for the future. We restructured our footwear business with a licensing agreement, we established our UK distribution business and invested in automating manufacturing processes. We expect all of these to have a positive impact on our business for 2002 and beyond.

Our sales performed roughly in line with last year’s sales, despite a weak global economy. As previously discussed, costs associated with the restructuring of our footwear business and setting up Head UK, the marketing cost for the Head Snowboard line and the weak retail environment have impacted our profits for the year. Earnings per share for the year were a couple of cents per share above the First Call Estimates. We had very robust cash flow from operations for the year, almost $36 million, part of which we used to repurchase over 2 million Head common shares and to pay a dividend of $0.25 per share.

For 2002, we expect to see modest revenue growth in local currencies. While I am cautious about making predictions in this type of uncertain economic outlook, I do believe that we are doing everything we can to position Head for stronger profitability in 2002.

Everyone in the Head organization is concentrating his or her efforts on reducing costs across the board and keeping tight controls on our inventory and receivables. At the same time we are continuing to make long term strategic investments like Head UK, maintaining our R&D commitment and automating manufacturing processes to reduce manufacturing costs. Also, I am very excited about our pipeline of new products such as the new Head Intelligence line of skis, which have been extremely well received.

We believe our balance sheet to be strong with relatively low gearing and ample liquidity to run our business for the long term.”

Financial Highlights – Three Months and Twelve Months

Total Revenues. For the three months ended December 31, 2001 total revenues decreased by $2.8 million, or 2.2%, to $128.0 million from $130.9 million in the comparable 2000 period. This decline was primarily due to reduced sales of Winter Sports equipment. For the twelve months ended December 31, 2001 total revenues decreased by $6.6 million, or 1.7%, to $392.0 million from $398.6 million in 2000. At comparable exchange rates, total revenues decreased by $1.2 million or 0.3%. This was mainly caused by lower sales of winter products and diving equipment.

Winter Sports revenues

For the three months ended December 31, 2001 decreased by $7.3 million, or 9.2%, to $71.8 million from $79.1 million in the comparableeriod in 2000. For the twelve months ended December 31, 2001 Winter Sports revenues decreased by $9.1 million, or 6.3%, to $135.4 million from $ 144.5 million in 2000. Excluding the effect of changes in exchange rates, revenues in winter sports decreased by $8.5 million, or 5.9%. We believe that these decreased sales were mainly a result of poor snow conditions in the southern part of Europe, a difficult economic environment in Germany and the continuing weakness of the Japanese market.

Racquet Sports revenues

For the three months ended December 31, 2001 increased by $4.5 million, or 13.0%, to $38.9 million from $34.4 million in the comparable 2000 period. For the twelve months ended December 31, 2001 Racquet Sport revenues increased by $6.1 million, or 3.5%, to $180.1 million from $ 174.0 million in 2000. Excluding the effect of changes in exchange rates revenues in Racquet Sports increased by $9.0 million, or 5.3%. After experiencing some growth in 1999 and 2000, preliminary reports indicate that the Racquet industry as a whole suffered a decline in 2001. The key reasons for this were a decline in the number of the recreational players, poor weather conditions in certain regions during the peak selling season and consumer reaction to a slowing economy. Despite this difficult market environment, Racquet Sports experienced growth during the period, the divisional key revenue drivers being an increase in tennis racquet sales, following the launch of Head Intelligence technology in late 2000.

Diving product revenues

For the three months ended December 31, 2001 decreased by $0.2 million, or 1.5%, to $15.1 million compared with $15.3 million in the same period in 2000. For the twelve months ended December 31, 2001, sales decreased by $3.8 million, or 5.2%, to $68.5 million from $72.2 million in 2000. Excluding the effect of changes in exchange rates, revenues from diving products decreased by $2.0 million, or 2.8%. We believe that he diving market is suffering from both US consumer reaction to the events of September 11th and the general downturn in the economy, which resulted in fewer people travelling to dive centers and resorts and making corresponding purchases of equipment.

Licensing revenues

For the three months ended December 31, 2001 increased by $0.2 million, or 11.2%, to $2.2 million from $2.0 million in the comparable 2000 period. For the twelve months ended December 31, 2001, revenues increased by $0.2 million, to $8.0 million from $7.9 million in 2000.

Gross Profit

For the three months ended December 31, 2001, gross profit decreased by $5.8 million to $51.5 million from $57.3 million in the comparable 2000 period. Gross margin decreased to 40.2% in 2001 from 43.8% in the comparable 2000 period. For the twelve months ended December 31, 2001, gross profit decreased by $13.1 million to $158.1 million from $171.2 million in 2000. Gross margin decreased to 40.3% in 2001 from 42.9% in 2000. The decline in gross profit reflected both lower sales in Winter Sports and Diving and the conversion of our footwear business into a licensing arrangement with Romika. The decline in gross margin reflects higher material and energy costs, lower sales quantities as well as the termination of our Footwear business.

Selling and Marketing Expenses

For the three months ended December 31, 2001, selling and marketing expenses increased by $0.3 million to $27.7 million from $27.4 million in the comparable 2000 period. For the twelve months ended December 31, 2001, selling and marketing expenses increased by $4.4 million to $102.1 million from $97.7 million in 2000. This increase was due primarily to increased advertising expenses incurred in connection with the introduction of the Head Intelligence racquets and Head Snowboard lines as well as an increase in premiums and sponsorship payments reflecting the success of our players.

General and Administrative Expenses

For the three months ended December 31, 2001, general and administrative expenses increased by $2.5 million to $9.6 million from $ 7.2 million in the comparable 2000 period. For the twelve months ended December 31, 2001, general and administrative expenses increased by $0.5 million, or 1.4%, to $34.0 million from $33.5 million in 2000. Of this increase, $0.4 million was attributable to a lower gain on the sale of a building used in operations in Italy than was recorded in 2000.

We also recorded $0.4 million and $1.4 million, in each of the three months and twelve months period ended December 31, 2000 and $0.5 million and $2.0 million, in each of the three months and twelve months periods ended December 31, 2001, as non-cash compensation expense due to the grant of stock options under our stock option plans 1998 and 2001 and the resulting amortization expense. In addition, we recorded in the twelve months ended December 31, 2001, $0.6 million of termination benefits and other related costs primarily in respect of one employee who held a management position and $0.2 million of expenses in connection with the start up of our distribution operation in the UK.

Operating Income

As a result of the foregoing factors, operating income for the three months ended December 31, 2001 decreased by $9.0 million, or 40.1% to $13.4 million from $22.4 in the comparable 2000 period. For the twelve months ended December 31, 2001 operating income decreased by $19.5 million, or 50.4%, to $19.1 million from $38.6 million in 2000.

Interest Expense

For the three months ended December 31, 2001 interest expense decreased by $2.2 million, or 43.6%, to $2.9 million from $5.1 million in the comparable 2000 period. For the twelve months ended December 31, 2001 interest expense decreased by $7.4 million or 39.5% to $11.3 million from $18.6 million in 2000. The decrease was due to the partial repayment of our debts using the proceeds of the initial public offering which took place in October 2000.

Interest Income

For the three months ended December 31, 2001 interest income decreased by $0.5 million, or 79.3%, to $0.1 million from $0.6 million in the comparable 2000 period. For the twelve months ended December 31, 2001 interest income decreased by $0.2 million or 20.2% to $0.9 million from $1.1 million in 2000. This decrease was due to lower cash on hand during the year.

Foreign Currency Exchange

For the three months ended December 31, 2001 we recorded a foreign currency exchange gain of $1.0 million, compared to a loss of $4.6 million in the comparable 2000 period. For the twelve months ended December 31, 2001, we recorded a foreign currency exchange gain of $5.8 million, compared to a gain of $7.5 million in 2000. The increase in the three months period as well as the decrease in the twelve month period, compared with 2000 is primarily due to the recognition of foreign exchange gains or losses associated with the Company’s U.S. dollar denominated receivables of its European subsidiaries in 2001. We operate in a multi-currency environment and are subject to the effects of fluctuation in exchange rates.

Other Income (Expense), net

For the three months ended December 31, 2001, other income (expense), net increased by $0.1 million to an income of $0.1 million from an expense incurred in connection with the introduction of the Head Intelligence racquets and Head Snowboard lines as well as an increase in premiums and sponsorship payments reflecting the success of our players.

General and Administrative Expenses

For the three months ended December 31, 2001, general and administrative expenses increased by $2.5 million to $9.6 million from $ 7.2 million in the comparable 2000 period. For the twelve months ended December 31, 2001, general and administrative expenses increased by $0.5 million, or 1.4%, to $34.0 million from $33.5 million in 2000. Of this increase, $0.4 million was attributable to a lower gain on the sale of a building used in operations in Italy than was recorded in 2000.

We also recorded $0.4 million and $1.4 million, in each of the three months and twelve months period ended December 31, 2000 and $0.5 million and $2.0 million, in each of the three months and twelve months periods ended December 31, 2001, as non-cash compensation expense due to the grant of stock options under our stock option plans 1998 and 2001 and the resulting amortization expense. In addition, we recorded in the twelve months ended December 31, 2001, $0.6 million of termination benefits and other related costs primarily in respect of one employee who held a management position and $0.2 million of expenses in connection with the start up of our distribution operation in the UK.

Operating Income

As a result of the foregoing factors, operating income for the three months ended December 31, 2001 decreased by $9.0 million, or 40.1% to $13.4 million from $22.4 in the comparable 2000 period. For the twelve months ended December 31, 2001 operating income decreased by $19.5 million, or 50.4%, to $19.1 million from $38.6 million in 2000.

Interest Expense

For the three months ended December 31, 2001 interest expense decreased by $2.2 million, or 43.6%, to $2.9 million from $5.1 million in the comparable 2000 period. For the twelve months ended December 31, 2001 interest expense decreased by $7.4 million or 39.5% to $11.3 million from $18.6 million in 2000. The decrease was due to the partial repayment of our debts using the proceeds of the initial public offering which took place in October 2000.

Interest Income

For the three months ended December 31, 2001 interest income decreased by $0.5 million, or 79.3%, to $0.1 million from $0.6 million in the comparable 2000 period. For the twelve months ended December 31, 2001 interest income decreased by $0.2 million or 20.2% to $0.9 million from $1.1 million in 2000. This decrease was due to lower cash on hand during the year.

Foreign Currency Exchange

For the three months ended December 31, 2001 we recorded a foreign currency exchange gain of $1.0 million, compared to a loss of $4.6 million in the comparable 2000 period. For the twelve months ended December 31, 2001, we recorded a foreign currency exchange gain of $5.8 million, compared to a gain of $7.5 million in 2000. The increase in the three months period as well as the decrease in the twelve month period, compared with 2000 is primarily due to the recognition of foreign exchange gains or losses associated with the Company’s U.S. dollar denominated receivables of its European subsidiaries in 2001. We operate in a multi-currency environment and are subject to the effects of fluctuation in exchange rates.

Other Income (Expense), net

For the three months ended December 31, 2001, other income (expense), net increased by $0.1 million to an income of $0.1 million from an expense of $0.01 million in the comparable 2000 period. For the twelve months ended December 31, 2001, other income (expense), net increased by $4.2 million to an income of $0.01 million from an expense of $4.2 million in 2000. In 2000 this amount included a one time payment of $3.5 million to the former owner of HTM in June 2000.

Income Tax Benefit (Expense)

For the three months ended December 31, 2001 income tax increased by $5.2 million to an expense of $1.4 million from an income tax benefit of $3.8 million in the comparable 2000 period. For the twelve months ended December 31, 2001, income tax increased by $6.0 million to an expense of $4.0 million from an income tax benefit of $1.9 million in 2000. This increase mainly attributed to an increase of current income tax expense mainly in Austria and Italy and the reversal of a valuation allowance on the deferred tax assets associated with tax loss carryforwards in 2000.

Share of loss from equity investment, net of tax This represents the Company’s share of loss from an equity investment in a distribution company purchased at the end of 2000. In each of the respective three months and twelve months periods ended December 31, 2001 the Company’s share of losses from this equity investment was $0.5 million and $1.1 million. On December 14, 2001 the Company withdrew its investment and has no further obligations.

Net Income

As a result of the foregoing factors, for the three months ended December 31, 2001 the Company had net income of $9.9 million, compared to net income of $19.2 million in the comparable 2000 period. For the twelve months ended December 31, 2001, the Company had net income of $9.4 million, compared to net income of $27.8 million in 2000.

Liquidity and Capital Resources:

For the twelve months ended December 31, 2001, net cash generated from operating activities increased by $29.5 million, or 456.7%, to $35.9 million from $6.5 million in 2000. This is mainly due to lower working capital requirements as a result of the Company’s asset management program. The cash flows from operating activities and proceeds from sale of a building were used to pay a dividend of $9.5 million to our shareholders, to purchase property, plant and equipment of $16.3 million and to purchase treasury stock.

We currently have $64.9 million in available unused credit facilities. We believe that we are in good standing with our lenders and that we have sufficient available credit for our needs.

About Head

We have a rich heritage. Founded in 1950 by inventor Howard Head, today Head NV is a leading global manufacturer and marketer of branded sports equipment serving the skiing, tennis and diving markets. We have a world-class portfolio of premium brands, which includes Head (alpine skis, ski boots and snowboard products, tennis, racquetball and squash racquets, athletic and outdoor footwear and apparel); Tyrolia (ski bindings); Penn (tennis balls and racquetballs) and Mares and Dacor (diving equipment).

Our strategic focus is to target the high margin, premium segments of our markets by developing highly innovative products sold at premium prices, a policy that we call “Superior Performance through Superior Technology”.

We are a global company diversified in terms of both products and geography and one of the top suppliers of branded sports equipment to sporting goods retailers worldwide. Head offers a broad product range through over 27,000 accounts in over 80 countries.

We hold leading market share positions in all three of our product categories: Winter Sports, Racquets Sport and Diving. We have a Licensing division to leveerage value from and increase visibility of our brands outside the product categories covered by our product divisions.

Based on our fully integrated sales, marketing and distribution units in our major markets, as well as the strength of our innovative new products, we have been able to increase our market shares during the past several years.

Our high performance products are used and endorsed by many of today’s top athletes. $0.01 million in the comparable 2000 period. For the twelve months ended December 31, 2001, other income (expense), net increased by $4.2 million to an income of $0.01 million from an expense of $4.2 million in 2000. In 2000 this amount included a one time payment of $3.5 million to the former owner of HTM in June 2000.

Income Tax Benefit (Expense)

For the three months ended December 31, 2001 income tax increased by $5.2 million to an expense of $1.4 million from an income tax benefit of $3.8 million in the comparable 2000 period. For the twelve months ended December 31, 2001, income tax increased by $6.0 million to an expense of $4.0 million from an income tax benefit of $1.9 million in 2000. This increase mainly attributed to an increase of current income tax expense mainly in Austria and Italy and the reversal of a valuation allowance on the deferred tax assets associated with tax loss carryforwards in 2000.

Share of loss from equity investment, net of tax This represents the Company’s share of loss from an equity investment in a distribution company purchased at the end of 2000. In each of the respective three months and twelve months periods ended December 31, 2001 the Company’s share of losses from this equity investment was $0.5 million and $1.1 million. On December 14, 2001 the Company withdrew its investment and has no further obligations.

Net Income

As a result of the foregoing factors, for the three months ended December 31, 2001 the Company had net income of $9.9 million, compared to net income of $19.2 million in the comparable 2000 period. For the twelve months ended December 31, 2001, the Company had net income of $9.4 million, compared to net income of $27.8 million in 2000.

Liquidity and Capital Resources:

For the twelve months ended December 31, 2001, net cash generated from operating activities increased by $29.5 million, or 456.7%, to $35.9 million from $6.5 million in 2000. This is mainly due to lower working capital requirements as a result of the Company’s asset management program. The cash flows from operating activities and proceeds from sale of a building were used to pay a dividend of $9.5 million to our shareholders, to purchase property, plant and equipment of $16.3 million and to purchase treasury stock.

We currently have $64.9 million in available unused credit facilities. We believe that we are in good standing with our lenders and that we have sufficient available credit for our needs.

About Head

We have a rich heritage. Founded in 1950 by inventor Howard Head, today Head NV is a leading global manufacturer and marketer of branded sports equipment serving the skiing, tennis and diving markets. We have a world-class portfolio of premium brands, which includes Head (alpine skis, ski boots and snowboard products, tennis, racquetball and squash racquets, athletic and outdoor footwear and apparel); Tyrolia (ski bindings); Penn (tennis balls and racquetballs) and Mares and Dacor (diving equipment).

Our strategic focus is to target the high margin, premium segments of our markets by developing highly innovative products sold at premium prices, a policy that we call “Superior Performance through Superior Technology”.

We are a global company diversified in terms of both products and geography and one of the top suppliers of branded sports equipment to sporting goods retailers worldwide. Head offers a broad product range through over 27,000 accounts in over 80 countries.

We hold leading market share positions in all three of our product categories: Winter Sports, Racquets Sport and Diving. We have a Licensing division to leverage value from and increase visibility of our brands outside the product categories covered by our product divisions.

Based on our fully integrated sales, marketing and distribution units in our major markets, as well as the strength of our innovative new products, we have been able to increase our market shares during the past several years.

Our high performance products are used and endorsed by many of today’s top athletes.sion to leverage value from and increase visibility of our brands outside the product categories covered by our product divisions.

Based on our fully integrated sales, marketing and distribution units in our major markets, as well as the strength of our innovative new products, we have been able to increase our market shares during the past several years.

Our high performance products are used and endorsed by many of today’s top athletes.