Nike ACG Extends Their “All Conditions” Line to the BeachNew Southern California Office and Alliance with Counter Culture Takes ACG Apparel Further Into the Heart of Action Sports Culture

Southern California – July, 6, 2000 – Nike ACG, the brand that takes Nike to the outdoors, will give its consumers fresh “All Conditions” wear starting next spring in the form of a new, performance based apparel line built for the more “amphibious’, warm-weather outdoor ACG consumer.

The new move is reinforced by an alliance with core action sports company Counter Culture Manufacturing, who will work with Nike ACG in the areas of development, supply, and sourcing of the new line out of a shared office location in Southern California.

Geography is important to the success of this line and to execute distribution and design of the new merchandise. This location allows the design, marketing and development process to thrive in the heart of U.S. Action Sport culture – Southern California.

This is a new, innovative business model for Nike ACG and puts the design team in the backyard of the consumer allowing the ACG brand to deliver a new line of action sports apparel that is not only authentic but built on a Nike standard of high quality sport performance.

“We felt that if we really wanted to make our brand credible with this ACG consumer and be competitive in the marketplace we needed to be where this ACG consumer lives … on the beach,” said Lee Turlington, apparel director for the Nike ACG brand. “This is a natural extension of the ACG Brand. The warm weather, beach location, is a “condition” in the “All Conditions” brand for Nike that is time we addressed.”

The move is indicative of the level of commitment Nike ACG is prepared to give to this action sports apparel line to ensure that it will have its own niche among other ACG product. The location is also strategic from a product design timeline strategy. Designers are in the heart of the consumer’s playground and can quickly get timely, relevant product to retailers. ACG is committed to providing the outdoor athlete with gear that is fresh, relevant and high performance even if their playground is not the mountain or the desert…but the water.

With the location for the new office set in Southern California in the same building as its new partner, Counter Culture, Nike ACG has already put their design team together whose focus is delivering exciting and innovative product to the market in spring ’01.

To add to their already strong Nike ACG design team, they have hired Devon Burt, formerly of Levi Strauss and before that Nike, as well as some seasoned surf industry individuals to lead this effort. Category Director, Deborah Waters was formerly of both Hang 10 and No Fear, and National Sales Manager, Jerry Lund, of the Rusty brand, are both veterans of the industry and bring to the table a wealth of knowledge of the surfing and overall action sports industry.

Retailers and consumers in the U.S. can expect to start seeing the ACG actions sports line in specialty stores as soon as Spring 2001. Plans to take the line to Japan, Australia, and Europe are also in the works for later in the year of 2001. Not its first entry into the actions sports world, Nike ACG has been making performance snowboarding product since 1995.

“From the mountain to the water, we want the ACG consumer to have the technical, functional and flavorful gear they need,” added Turlington.

Nike ACG is a Division of Nike Inc., based in Beaverton, Oregon. Nike ACG takes Nike to the outdoors with the creation of outdoor athletic footwear and apparel infused with the flavor and attitude of the outdoor athlete. ACG Performance products focus on mountain biking, snowboarding, water sports, trail running and outdoor cross training. For additional information about Nike ACG, its products and business practices, visit nike.com and nikebiz.com on the Web.