USA: Oakley Assumes Control of New Zealand Distribution

Oakley, Inc. (NYSE: OO) today announced it has reached an agreement to assume direct responsibility for distribution of Oakley products in the New Zealand market, effective April 1, 2000. Shoreline Pty. Ltd. had previously distributed Oakley products on an exclusive basis in New Zealand since 1987. "Shoreline's dedication throughout the past 13 years has laid a solid foundation for us to build upon," said Chief Operating Officer Link Newcomb. "They have done an excellent job positioning Oakley, developing a loyal consumer base and providing world class customer service, and have been successful in making Oakley a market leader in an important sunglass market." "Adding to our Australian acquisition last November, this further solidifies our South Pacific presence and strongly positions our brand for the upcoming 2000 Sydney Olympics," continued Newcomb. "This distribution change, which will be managed by our new Australian office, allows us to maximize our efficiencies across all product categories throughout the South Pacific. With distribution through approximately 300 specialty retail accounts, Shoreline generated wholesale revenues of nearly $3 million in 1999. The agreement calls for retention of the majority of the Shoreline staff who has played crucial roles in creating the successful New Zealand distribution. Oakley expects the change to be immediately accretive to earnings. No additional financial details were disclosed.