FOOTHILL RANCH, Calif., Dec. 2, 2004 (PRIMEZONE) -- Oakley, Inc. (NYSE:OO) today announced that it has entered into an agreement with The Hockey Company ("THC") to be the company's exclusive worldwide distributor for its patented, optically correct, hockey face shields. The Hockey Company, a wholly owned subsidiary of Reebok International, Ltd., and the most storied and successful hockey company in the world, conducts business under the CCM, JOFA and KOHO trade names.
"This exclusive agreement with The Hockey Company enables Oakley to leverage THC's expertise as distributors of hockey products worldwide, and allows us to tap markets more effectively than we have before. This agreement allows us to focus more of our energy towards our other product categories," commented Oakley's Chief Operating Officer, Link Newcomb.
By way of the distribution agreement, THC will begin marketing and distributing Oakley's patented hockey face shields worldwide, on behalf of Oakley, beginning January 1, 2005. In addition to handling the worldwide distribution of Oakley's hockey shields, THC will continue Oakley's efforts to supply professional hockey players with the Oakley hockey shields, the most optically correct face shields on the planet.
The distribution agreement follows the agreement by the parties to settle and dismiss litigation filed by Oakley in federal court alleging that THC and its subsidiaries infringed Oakley's U.S. Patent Nos. 5,815,848, 6,010,217, and 6,038,705. The parties agreed to dismiss Oakley's claims and the Defendants' counterclaims in the lawsuit, which contended that Oakley's patents were invalid. The Hockey Company, and its subsidiaries, have agreed to cease making and selling its JOFA-branded hockey shield accused of infringement in the lawsuit, and to not contest the validity of the patents during the life of the distribution agreement. The effective term of the agreement, of which other specific terms were not disclosed, runs through December 31, 2015, soon after the first of Oakley's face shield patents begin to expire.
"This is a very exciting long term partnership that presents an opportunity for both parties to resolve all past issues and to team up in a way that is both, constructive and mutually beneficial," said Len Rhodes, The Hockey Company's Vice President, Product Creation and Global Marketing.
Oakley entered into the hockey equipment business in 1997 when the company acquired One Xcel, the owner of a portfolio of patents covering optically correct face shields. Oakley will continue to manufacture, market and distribute its face shields for football.
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 electronics, premium performance footwear, apparel, accessories, watches and prescription eyewear to consumers in more than 100 countries. Trailing-12-month revenues through September 30, 2004 totaled $548.9 million and generated net income of $34.8 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.
About The Hockey Company, Inc.
The Hockey Company, a division of Reebok International Ltd, is headquartered in Montreal. With operations in Europe and the United States, it is the world's largest designer, manufacturer and marketer of hockey equipment and related apparel under three of the world's most recognized hockey brand names: CCM, JOFA and KOHO. The Company is a world leader in the design and innovation of skates, sticks, helmets, protective equipment products and related apparel and is the exclusive licensee of the National Hockey League and the Canadian Hockey League for authentic and replica jerseys.
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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. Such forward-looking statements, including but not limited to growth and strategies, future operating and financial results, financial expectations and current business indicators are based upon current information and expectations and are subject to change based on factors beyond the control of the company. Forward-looking statements typically are identified by the use of terms such as "may," "will," "should," "might," "believe," "expect," "anticipate," "estimate" and similar words, although some forward-looking statements are expressed differently. 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 successful integration of new distributors; risks related to the successful launch and sale of Oakley Thump; the company's ability to manage rapid growth; risks related to the limited visibility of future sunglass orders associated with the company's "at once" production and fulfillment business model; 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 and licensing arrangements 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 impact 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. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to update this forward-looking information. Nonetheless, the Company reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.