Quiksilver To Acquire DC Shoes

Adds International Boardriding Brand To Its Portfolio. —

Huntington Beach, California, March 8, 2004–Quiksilver, Inc. (NYSE: ZQK) and DC Shoes, Inc. announced a definitive agreement whereby Quiksilver will acquire DC Shoes, the premier designer, producer and distributor of action sports inspired footwear, apparel and related accessories in the U.S. and internationally. Quiksilver, Inc.’s surf-inspired Quiksilver and Roxy brands will be complemented by the DC Shoes brand with its skate-driven lifestyle. The combined businesses are perfectly positioned in the global youth market.

DC Shoes, Inc. achieved total sales exceeding $100 million in the year ended December 31, 2003. Its broad product line includes a full range of skate shoes and snowboard boots with various technical and design features, as well as men’s and junior’s apparel and accessories. Quiksilver, Inc. reported revenues of $975 million for its fiscal year ended October 31, 2003.

Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc.,commented, “DC shoes is a tremendous fit with our organization from a cultural, strategic and operationalstandpoint. They are a young, aggressive and energetic company which reminds me a lot of Quiksilver. We both share respect for the authenticity that makes our brands powerful, and we both benefit from product designthat reflects technical excellence and great style. We expect to see tremendous synergies between our teams.”

Bernard Mariette, President of Quiksilver, Inc., commented, “DC Shoes fits all of the criteria weidentify as key for an acquisition. DC has fantastic global potential, sizeable revenues, and their culture is verysimilar to Quiksilver’s. In fact, they have already demonstrated international success, and we can build on thiswith our global platform that has been developed over the past ten years. We expect DC to flourish with itsseparate design and marketing teams supported by the logistics of Quiksilver. While we have successfullydeveloped a growing branded footwear business, DC’s management team will help fine tune our footwearoperations and product. At the same time, we believe that DC has an excellent, but so far, relatively untappedopportunity, to deliver an even stronger sportswear line to the youth market.”

Headquartered in Vista, California, privately-held DC Shoes, Inc. commands a leadership position inthe action sports industry as the premier designer, producer and distributor of skate-inspired shoes, apparel andrelated accessories. DC’s brand transcends the traditional boundaries of both footwear and skateboarding, witha diverse product mix respected by boardriders as well as a broad base of consumers. As one of thecornerstones of its marketing strategy, the company has built a world-class team of professional athletes thatexemplify and enhance DC’s brand, develop its signature products, and support its promotional efforts.

Ken Block, President and Founder of DC Shoes, Inc., said, “We are very excited to be partnering withQuiksilver, the number-one action sports brand in the industry. Their global platform will provide us with theresources to make DC even stronger, while allowing us to maintain the integrity and spirit of DC’s roots.”

Damon Way, Executive Vice President and Founder of DC Shoes, Inc., added, “Quiksilver is the idealpartner for us. Their understanding of our vision as it relates to product development, marketing, distribution,global strategies and athletes could not be any better.”

Mr. McKnight concluded, “We believe this deal represents yet another step in the evolution of ourbusiness and that our shareholders will be well served through this transaction. It fits incredibly well with ourstrategy of pursuing opportunities in the global youth market. We are thrilled to expand both the depth and breadth of our management team and portfolio of brands, and we remain highly focused on our goal of buildingone of the world’s leading brannded consumer apparel, and now footwear, companies.”

The total purchase price for the acquisition will consist of an initial payment of $56 million in cash and1.6 million restricted shares of Quiksilver common stock and the assumption of approximately $10 million infunded indebtedness. In addition, the sellers may receive up to an additional $57 million paid over 4 yearsthrough 2007 if DC Shoes reaches certain performance targets.

The acquisition agreement is subject to customary closing conditions, including regulatory approvals,and is expected to close by the third quarter of fiscal 2004. Quiksilver believes the acquisition to be mildlyaccretive to earnings per share in the current fiscal year and estimates that earnings accretion will beapproximately $0.06 per share in fiscal 2005.

With respect to the transaction, Quiksilver, Inc. is being advised by Citigroup Global Markets, Inc., andDC Shoes, Inc. is being advised by the Sage Group, Inc.

About Quiksilver:

Quiksilver designs, produces and distributes clothing, accessories and related products for youngmindedpeople 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, and Radio Fiji labels. Quiksilver also manufactures apparel for boys (Quiksilver Boys and HawkClothing), girls (Roxy Girl, 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, Gnuand Bent Metal labels. Quiksilver’s products are sold throughout the world, primarily in surf shops andspecialty stores that provide an authentic retail experience for our customers.