Oakley Leases New Warehouse

FOOTHILL RANCH, Calif.–(BUSINESS WIRE)–December 13, 2000– Oakley, Inc. (NYSE:OO) today reported it has leased a new 118,000 square foot warehouse and shipping facility in Ontario, California to support the expanding needs of its footwear and apparel lines. The company’s order backlog for spring 2001 footwear and apparel has increased substantially from the prior year. As of December 12, 2000, the spring 2001 footwear and apparel backlog stands at $18.9 million, a more than fivefold increase over last year’s level of $3.7 million. The new facility is expected to be in full operation in January 2001 and will begin shipping the spring footwear and apparel lines to retailers worldwide beginning in February 2001 continuing through early second quarter 2001.

“We continue to see excellent response from worldwide retailers and are gearing up for successful delivery of the spring 2001 footwear and apparel lines. As we establish our brand in these new categories, we continue to gain more success in prebooking orders from our retailers before the season begins. The Ontario facility gives us the added shipping infrastructure and capacity necessary to accommodate the specialized needs of these lines,” said Oakley Chief Operating Officer Link Newcomb. “In addition, we have successfully realigned incentives in our sales organization to reward sales momentum in our new product categories and expect next year to mark the first year our product diversification efforts, armed with greater product-line depth, will have a real opportunity to make a meaningful contribution. Moving footwear and apparel to Ontario will also free up additional space at our headquarters in Foothill Ranch to accommodate continued growth in our eyewear and watch businesses.”

The current footwear line consists of 10 styles and will be expanded with four new styles for spring 2001, including the company’s first performance sandal line as well as a new line of aggressively-designed shoes intended for off-road use. The company currently has between 2,700 to 3,000 global footwear doors. The spring 2001 apparel line, highlighted by the company’s first technical mountain bike short, consists of more than 80 styles, an increase of 66 percent from spring 2000.

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 September 30, 2000 totaled $336.4 million and generated net income of $47.1 million — a 14.0 percent net margin, excluding a one-time, after-tax restructuring charge of $8.2 million recorded during the fourth quarter of 1999. Oakley, Inc. press releases, SEC filings and the company’s Annual Report are available at no charge through the company’s Web site at www.oakley.com.