FOOTHILL RANCH, Calif., Aug 6, 2002 (BUSINESS WIRE) — Oakley Inc. (NYSE:OO) today announced that it has settled the patent infringement lawsuit filed on March 2, 2001, against V-2 Optic, LLC, doing business as Version Optic and Velvet Eyewear, filed in the United States District Court for the Southern District of California.

Oakley filed the suit against V-2 Optic in response to V-2 Optic’s infringement of Oakley’s U.S. Patent No. 6,009,564 that was issued on Jan. 4, 2000. Pursuant to the settlement, V-2 Optic agreed to change the optics of its Version “Vent” and Velvet “Flurry” goggles so as not to fall within the scope of any claim of Oakley’s patent.

V-2 Optic also agreed not to manufacture, import, market, or sell any goggle in the future that infringes upon Oakley’s optically superior goggle patent.

Oakley’s patent protects technology embodied in Oakley’s optically superior A Frame(R) goggle and soon to be released Wisdom(TM) goggle. The goggles’ patented advantage is achieved by reducing fogging and minimizing optical distortion by combining an optically correct, dual lens configuration with strategic venting.

“This patent is one of the core elements that gives us the world’s most optically correct goggle and is just one example of Oakley’s large portfolio of patented optics. For more than 26 years athletes around the world have embraced the superior performance of our technologically advanced products,” commented Chief Executive Officer Jim Jannard.

Specific terms of the settlement regarding the case have not been disclosed.

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, 2002 totaled $458.9 million and generated net income of $45.5 million — a 9.9 percent net margin.

Oakley news releases, SEC filings and the company’s Annual Report are available at no charge through the company’s Web site at www.oakley.com.