FOOTHILL RANCH, Calif., May 7, 2004 (PRIMEZONE) -- Oakley, Inc. (NYSE:OO) today announced that it has extended for an additional three years its existing licensing agreement with Ducati Motor Holding S.p.A. and has expanded the scope of the agreement to include five exclusive models of Oakley eyewear.
A photo accompanying this release is available at: http://www.primezone.com/newsroom/prs/?pkgid=1029.
New for 2004, Ducati and Oakley will introduce custom versions of Oakley's Monster Dog(tm) and Zero(r) sunglasses and will continue to offer last year's successful introductions of custom Juliet(r), Half-Jacket(r) and Valve(r) styles. In addition to sunglasses, Ducati and Oakley will also offer a Wisdom(r) snow goggle for the 2004 fall season, an introduction inspired by Ducati's passion for speed and aerodynamics that carries to the mountains.
All products covered by the agreement feature a color scheme and graphic treatments consistent with Ducati products and bear laser engraved lenses with Ducati trademarks, among other unique features. The new Zero(tm) will feature an exclusive Ducati lens shape. The products will be distributed through Oakley's sunglass distribution points worldwide, including over 100 Oakley-owned retail locations, and will also be sold through exclusive "Ducati Stores" and dealerships in Ducati's distribution network.
"Given the tremendous success of last year's product offerings, we are excited to renew this relationship for three additional years with a company that shares our passion for design and performance products. Ducati's unbelievable performance record on the race track validates their position as a world leader in motorcycle design and manufacturing," commented Oakley Executive Vice President Tommy Rios.
Ducati has won more World Superbike Championships than any other manufacturer and has more single race victories than all other competitors combined. The custom sunglasses created under the agreement are directly inspired by Ducati racing tradition, combining sleek design with technical performance.
"When it comes to high performance eyewear we think Oakley is the most exciting and dynamic brand in the world," commented Federico Minoli, Chairman and CEO of Ducati Motor Holding.
"It is particularly exciting for us considering the fact that our top racers in the past have always chosen Oakley eyewear. With the evolution of this relationship we are now able to offer additional Ducati inspired performance eyewear pieces to our enhanced dealer distribution network," said David Gross, Creative Director of Ducati Motor.
Specific terms of the deal were not released.
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 100 countries. Trailing-12-month revenues through March 31, 2004 totaled $537.5 million and generated net income of $39.2 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 manage rapid growth; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; the ability of those manufacturing partners and the company's internal production operations to increase production volumes on raw materials and finished goods in a timely fashion in response to increasing demand and enable the company to achieve timely delivery of finished goods to its retail customers; the ability to provide adequate fixturing to existing and future retail customers to meet anticipated needs and schedules; the dependence on eyewear sales to Sunglass Hut which is owned by a major competitor and, accordingly, could materially alter or terminate its relationship with the company; the company's ability to expand distribution channels and its own retail operations in a timely manner; 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; continued weakness of economic conditions could continue to reduce or further reduce demand for products sold by the company and could adversely affect profitability, especially of the company's retail operations; further terrorist acts, or the threat thereof, could continue to adversely affect consumer confidence and spending, could interrupt production and distribution of product and raw materials and could, as a result, adversely affect the company's operations and financial performance; the ability of the company to integrate acquisitions without adversely affecting operations; 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 and changes in consumer preferences; reductions in sales of products, either as the result of economic or other conditions or reduced consumer acceptance of a product, could result in a buildup of inventory; the ability to source raw materials and finished products at favorable prices to the company; the potential effect of periodic power crises on the company's operations including temporary blackouts at the company's facilities; foreign currency exchange rate fluctuations; earthquakes or other natural disasters concentrated in Southern California where substantially all of the companies operations are based; the company's ability to identify and execute successfully cost control initiatives; 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, 2003 and other filings made periodically by the company. The company undertakes no obligation to update this forward-looking information.
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