Spy Optic Reports 28% Sales Increase

Brand Recognized for Dynamic Growth

(CARLSBAD, CA) July 17, 2003-Spy Optic, Inc. today reported 28% domestic sales growth for the first and second quarters of fiscal 2003. The increase is in comparison to the same period of fiscal 2002.

In addition to the current 2003 increase, Spy Optic, Inc. was the recipient of the annual High Growth Company Award at the recent Association for Corporate Growth Awards/San Diego. This award was based on leading revenue growth for year-end 2002. The ACG ranks first among international associations of its kind.

Spy’s growth over the past 18 months can be attributed to a variety of factors such as the introduction of groundbreaking eyewear products that have been overwhelmingly received by the consumer marketplace. In addition, ardent attention has been paid to the company’s specialty retailer base through un-paralleled service and support as well as regional retail focus groups.

“We are very excited about our continued strong results in the domestic market,” stated Spy president Barry Buchholtz. “We believe that our commitment and focus to the specialty distribution channel has allowed us to continue to grow within the influential core markets.” Buchholtz continues, “Our success proves that significant growth can be achieved through deliberate and consistent service, support, and constant innovation in new products.”

Spy’s diverse management team possesses backgrounds in entrepreneurial fashion ventures, operations, finance, and national sales leadership in the action sports industry. The collaborative force continues to grow the business from the North County San Diego backyard into a globally recognized brand with distribution in more than 5,000 retail outlets in North America and in 38 countries worldwide.

Spy fuses Italian produced, hand-made designs with southern-California action sport inspiration. Breakthrough advancements such as ARC(tm) Prismatic Polycarbonate lenses, Trident(tm) Polarized lenses, scratch resistant lens coatings, unique frame materials and designs, and the patented Scoop(tm) venting system, continually vault Spy Optic above and beyond the competition. Scoop(tm) Technology is patented by Spy Optic, Inc; US Patents: 5,610,668, 5,898,468, 5,801,805, 6,050,684 & Des. D397,133.