HUNTINGTON BEACH, Calif.–(BUSINESS WIRE)–Nov. 20, 2001–Quiksilver, Inc. (NYSE:ZQK), today announced that it expects to report consolidated net sales of approximately $167.0 million compared to $151.6 million last year and fully diluted earnings per share in the range of $0.09 to $0.10 for the fourth quarter ended October 31, 2001.

The company stated that its domestic business during the quarter was adversely affected by the events of September 11, especially in travel-oriented locations such as Hawaii, Florida and Guam. These events compounded existing problems in a weak domestic market. Significant impacts included order delays and cancellations, credit-related shipment holds, slower replenishment trends for core styles, and a push toward later shipments versus the year-ago period. Additionally, pricing for clearance goods was negatively affected by the swell of merchandise available to the off-price channel from other apparel brands. The company expects domestic inventories, which were higher than plan at the end of third quarter, to continue to run above optimum levels for the next two to three quarters.

Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “The recent declines in consumer purchasing and retail traffic levels here in the United States caused the pace of our fourth quarter business to slow further than we had anticipated. Even so, there are bright spots in our business. Results in Europe, which represents nearly 40% of our total sales mix, continue to be very healthy. Further, we believe that consolidated Spring bookings are likely to increase at a double-digit pace due to our status as a proven vendor with strong sell-through history and as a time-tested brand sought by consumers.”

If the domestic retail environment remains challenging, as the company believes it will, for next year, the Company anticipates that consolidated net sales will range from $630 million to $650 million and diluted earnings per share will range from $1.20 to $1.25 for fiscal 2002.

Mr. McKnight concluded, “While clearly we are disappointed with the outcome for the fourth quarter, the factors which contributed to the decline were largely outside of our control. With that said, we are committed to improving our inventory turn rate, streamlining our expense structure, and posturing for excellent overseas sales growth rates. Our product, brand and geographical diversification presents us with opportunities to increase the scope of our business even in a troubled retail environment and we will capitalize on those opportunities to drive shareholder value.”

About Quiksilver:

Quiksilver designs, produces and distributes clothing, accessories and related products for active-minded people and develops brands that represent a casual lifestyle – driven from a boardriding heritage. Quiksilver’s authenticity is evident in its innovative products, events and retail environments across the globe.

Quiksilver’s primary focus is apparel for young men and young women under the Quiksilver, Roxy, Raisins, Radio Fiji and Hawk Clothing labels. Quiksilver also manufactures apparel for boys (Quiksilver Boys and Hawk Clothing), girls (Teenie Wahine and Raisins Girls), men (Quiksilveredition and Fidra) and women (Leilani swimwear), as well as snowboards, snowboard boots and bindings under the Lib Technologies, Gnu and Bent Metal labels. Quiksilver’s products are sold throughout the world, primarily in surf shops and specialty stores that provide an outstanding retail experience for their customers.

Safe Harbor Language

This Press Release contains forward-looking statements. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Please refer to Quiksilver’s SEC filings for more information on the risk factors that could cause actual results to differ materially from expectations, specifically the section titled “Forwardd Looking Statements” in Quiksilver’s Annual Report on Form 10-K.