Oakley to Consolidate Its Multi-Brand Iacon Retail Store Concepts Under Sunglass Icon Brand

Company's 110 Stores Creates Second Largest U.S. Sunglass Specialty Chain


FOOTHILL RANCH, Calif., June 20, 2006 (PRIMEZONE) -- Oakley, Inc. (NYSE:OO) today announced a strategic initiative to create the second largest U.S. sunglass specialty retail chain by re-branding its multi-brand, sunglass specialty retail store concepts under one name -- Sunglass Icon(tm).

Oakley's 110 mall-based multi-brand sunglass specialty stores, housed under its wholly owned Iacon subsidiary, are currently comprised of six separate retail concepts including Occhiali da Sole, Optica, Sporting Eyes, Sunglass Club, Sunglass Designs and Sunglass Icon. Under the company's new retail brand consolidation strategy, five of the six retail concepts will be consolidated under the Sunglass Icon brand, while two Optica stores will be managed by The Optical Shop of Aspen (OSA) retail subsidiary that caters to consumers of high-end premium prescription eyewear and sunglasses.

"In conjunction with Oakley's renewed focus on optics, establishing a single Sunglass Icon retail concept is an excellent opportunity for us to build value through enhanced consumer recognition and loyalty," said Oakley, Inc. Chief Executive Officer Scott Olivet. "The Sunglass Icon retail concept is designed to help convey our expertise across the entire sunglass category, and provide a high-quality, customized shopping experience for multiple consumer segments."

"Additionally, we expect this retail brand consolidation strategy to achieve enhanced operational efficiencies by leveraging consistent signage and fixtures and optimizing regional advertising and promotions," Olivet continued. "We also believe creating a strong, national identity will enable us to attract and retain the best personnel for our retail stores."

Jeff Obstfeld, president of Sunglass Icon commented, "We have grown our retail store count substantially since Oakley's acquisition of Iacon in 2001, demonstrating a strong commitment to invest in an expanding retail footprint. With this re-branding, we will leverage our name recognition among mall developers as a formidable national tenant and among consumers as the sunglass experts, pursuing future growth under a single, unified, scaleable retail concept."

The company plans to begin retrofitting stores with new signage immediately and expects to complete the transition within 12-18 months.

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 offers a full array of products including performance apparel and accessories, prescription eyewear, footwear, watches and electronics to consumers in more than 100 countries. Trailing-12-month net sales through March 31, 2006 totaled $658 million. Oakley, Inc. press releases, SEC filings and the company's annual report are available at www.oakley.com.

The Oakley, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1533

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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 "look," "may," "will," "should," "might," "believe," "plan," "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 but not limited to: the company's successful implementation of its growth initiatives such as multi-branding, exiting from a portion of its footwear business and realignment of the apparel business; risks related to the sale of new product introductions in the company's electronics category; the company's ability to maintain approved vendor status and continue to receive product orders from the U.S. military; the company's ability to integrate and operate acquisitions; 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 Luxottica Group S.p.A, which, as a major competitor, could materially alter or terminate its relationship with the company; the company's ability to expand and grow its distribution channels and its own retail operations; 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; a weakening of economic conditions could continue to reduce demand for products sold by the company and could adversely affect profitability, especially of the company's retail operations; terrorist acts, or the threat thereof, could 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 licensing arrangements without adversely affecting operations and the success of such initiatives; 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; the company's ability to identify and successfully execute cost control initiatives; the impact of quotas, tariffs, or safeguards on the importation or exportation of the company's products 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, 2005 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.



            

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