CARLSBAD, Calif.–(BUSINESS WIRE)–June 5, 2003–K2 Inc. today announced that the company has entered into anagreement, subject to customary conditions, to privately place $75 millionprincipal amount of 5% convertible senior notes due June 2010. The senior, unsecurednotes will be convertible into approximately 5.7 million shares of K2 commonstock at a conversion price of $13.14 per share. The placement of the notes isexpected to close on June 10, 2003.

K2 intends to use the net proceeds to repay debt under its $205 millionrevolving credit facility, which will increase the company’s borrowing availabilityunder this credit facility, and for general corporate purposes.

The convertible notes will be offered to qualified institutional buyers inreliance on Rule 144A under the Securities Act of 1933. The notes will not beregistered under the Securities Act. Unless so registered, the notes may not beoffered or sold in the United States except pursuant to an exemption from,agreed to or in a transaction not subject to, the registration requirements ofthe Securities Act and applicable state securities laws. This news release doesnot constitute an offer to sell or the solicitation of an offer to buy, norshall there be any sale of the convertible notes in any state in which suchoffer, solicitation or sale would be unlawful prior to registration orqualification under the securities laws of any such state.

About K2 Inc.

K2 Inc. is a premier, branded consumer products company with a primary focuson sporting goods and other recreational products as well as certain nicheindustrial products. K2′s portfolio of leading brands includes Rawlings,Shakespeare, Pflueger, Stearns, K2, Ride, Olin and Morrow. K2′s diversified mix ofproducts is used primarily in team and individual sports activities such asbaseball, fishing, watersports activities, alpine skiing, snowboarding, in-lineskating and mountain biking. Among K2′s other recreational products are DanaDesign backpacks, Planet Earth apparel, Adio skateboard shoes, Rawlings teamsports apparel and Hilton corporate casuals. K2 also manufactures and marketsShakespeare extruded monofilaments and marine antennas.

Safe Harbor StatementThis news release includes forward-looking statements. K2 cautions that thesestatements are qualified by important factors that could cause actual resultsto differ materially from those in the forward-looking statements, includingbut not limited to K2′s ability to successfully execute its acquisition plansand growth strategy, integration of its recent merger with Rawlings SportingGoods Company, Inc., weather conditions, consumer spending, continued successof manufacturing in China, global economic conditions, product demand,financial market performance, and other risks described in the company’s most recentannual report on Form 10-K, subsequent quarterly reports on Form 10-Q, andcurrent reports on Form 8-K, each as filed with the Securities and ExchangeCommission. The company cautions that the foregoing list of important factors is notexclusive, any forward-looking statements included in this news release ismade as of the date of this news release, and the company does not undertake toupdate any forward-looking statement.