FOOTHILL RANCH, Calif., Aug. 12, 2003 (PRIMEZONE) — Oakley, Inc. (NYSE: OO) today announced that its Board of Directors had initiated an annual dividend policy and declared the Company’s initial regular annual cash dividend of $0.14 per share, payable October 31, 2003, to shareholders of record at the close of business on October 15, 2003. Any future dividends are at the discretion of and subject to the approval of Oakley’s Board of Directors.

“In light of the recent tax law changes that provide investors with the same federal tax rates for share appreciation and dividends, and given our sound cash flow generating business model, we believe it is appropriate to return value to our shareholders by commencing a regular annual dividend. Additionally, we expect to continue returning value to our shareholders through our share repurchase program,” commented Chief Operating Officer Link Newcomb.

“We view the declaration of a dividend as another way for Oakley to deliver value to shareholders. Our business strategy has resulted in solid cash flows, a strong market position, and what we believe is a sustainable business model. We remain excited about our continued potential for growth and believe that initiation of a cash dividend will make Oakley stock attractive to a broader range of investors as we continue to build value for customers, employees and shareholders,” Newcomb concluded.

As of June 30, 2003, cash and equivalents totaled $21.1 million, short-term debt totaled $15.0 million and long-term debt totaled $13.9 million. On September 10, 2002, the company’s Board of Directors authorized the repurchase of up to $20 million of the company’s stock, to occur from time to time as market conditions warrant. Since then, the company has repurchased 829,600 shares for $8.6 million at an average share price of $10.37. The company intends to continue to make repurchases under the outstanding share repurchase program at appropriate times.

Oakley Appoints Tom Davin to Board of Directors and Audit Committee

Oakley also announced the appointment of Tom Davin to the company’s Board of Directors and to the Audit Committee of the Board of Directors.

Mr. Davin currently serves as the Operating Partner of Brentwood Associates, a middle-market private equity firm founded in 1972, managing more than $700 million of institutional capital. He also serves as Chairman of Spectrum Clubs, Inc., a fitness club chain; a Director of Zumiez, Inc., a 100 store retailer of action sports apparel; and a co-founder and Director of Exhale Enterprises, a day spa chain in New York City. In addition to these responsibilities, he is a Director of the Duke University Library, the Harbor Day School in Newport Beach, California and the Boys and Girls Club of Martha’s Vineyard, Massachusetts.

Prior to joining Brentwood, Davin served as Chief Operating Officer of Taco Bell, which by 1999 had become the largest profit generator within Tricon Global Restaurants, Inc. (now YUM! Brands, Inc.), the NYSE company comprised of Taco Bell, KFC and Pizza Hut. Davin was also one of eleven “founding partners” who led the creation of Tricon and its spin-off from PepsiCo in 1997.

Davin earned an MBA, with distinction, from the Harvard University Graduate School of Business Administration. He graduated from Duke University, magna cum laude, where he was awarded a Naval ROTC scholarship, commanded the Naval ROTC organization, and was co-captain of Duke’s nationally ranked lacrosse team.

Davin also served as a U.S. Marine Corps officer leading combat infantry and special operations units and was the #1 graduate of the Marine Officer Basic School, U.S. Army Ranger School and the Special Forces Combat Diver Course. He has commanded companies in both the First Reconnaissance Battalion, Camp Pendleton, California and Third Reconnaissance Battalion, Okinawa, Japan and served as an infantry tactics instructor at the Marine Officer Basic School in Quantico, VVirginia.

“Tom brings to Oakley significant operating, financial and retail experience in the consumer arena. His impressive business and military contacts and achievements will assist in making us a more powerful and profitable world brand. I look forward to his contributions,” commented Chairman and Chief Executive Officer Jim Jannard.

“Oakley is fueled by a passion to lead through innovation. Like some of the outstanding Marine Corps and consumer product companies I have been a part of, Oakley has a clear mission supported by a culture of people who are driven to constantly challenge conventional wisdom. I am delighted to have the opportunity to support Jim Jannard and his leadership team as they continue to build Oakley,” commented Tom Davin.

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 June 30, 2003 totaled $489.9 million and generatednet income of $34.2 million. Oakley, Inc. press releases, SEC filings and the company’s Annual Report are available at no charge through the company’s Web site at http://www.oakley.com.