In advance of its annual shareholders' meeting, Oakley, Inc. (NYSE:OO) today announced that, based on current sales trends, the company expects to report net sales in excess of $90 million and earnings of at least $0.21 per diluted share in the second quarter ending June 30, 2000. These results would represent increases of approximately 25 percent and 40 percent, respectively, compared to net sales of $72.1 million and earnings of $0.15 per diluted share reported in the same period last year. The company expects to report final second quarter results on July 19, 2000.

"Based on sales trends through May and feedback from retailers around the world, the company's innovative eyewear products, including those introduced over the past nine months, have clearly captured the imagination of consumers," said Link Newcomb, Oakley's Chief Operating Officer. "A wide variety of our key styles are contributing to this exceptionally strong sales growth. We are particularly proud of the growing popularity and heightened exposure of our proprietary X-Metal(TM) models, which are the result of several years of design, materials and manufacturing innovation. With Oakley as the featured brand during the first two weeks of June in more than 1400 North American Sunglass Hut locations, we're optimistic that we will finish the quarter strong."

"Our expanded fall 2000 footwear line featuring seven new models began shipping last week to key retailers around the world," continued Newcomb. "Oakley's fall 2000 apparel line contains more than 90 styles and hits retail stores in August. Additionally, an innovative new multi-function, sport watch priced at approximately $180 will arrive in early fall, allowing us to penetrate a new segment of the watch market."

"Coupled with the largest print advertising campaign ever in the long history of the company, consumers around the world are hearing, seeing and responding to Oakley's message of unmatched innovation and performance," concluded Newcomb. "Along with Oakley's entire management team, I look forward to sharing more details about our products and business strategies at this Friday's annual shareholders' meeting."

Oakley's annual shareholders' meeting is scheduled to begin at 10:00 a.m. PDT at the company's headquarters located in Foothill Ranch, California.

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 March 31, 2000 totaled $272 million and generated net income of $32.1 million -- a 12 percent net margin, excluding a one-time restructuring charge of $8.2 million. 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.

Safe Harbor Disclaimer

This press release contains certain statements of a forward-looking nature. Such statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including: risks related to the company's ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; the dependence on eyewear sales to Sunglass Hut; unanticipated changes in general market conditions or other factors which may result in cancellations of advance orders or a reduction in the rate of reorders placed by retailers; risks that the net realizable value of assets disposed of in the footwear restructuring may differ from estimates used; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; the acceptance in the marketplace of the company's new products; the ability to source raw materials and finished products at favorable prices to the company; foreign currency exchange rate fluctuations; and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended December 31, 1999 and Quarterly Report on Form 10-Q for the three-month period ended March 31, 2000. The company undertakes no obligation to update this forward-looking information.