Oakley Joins Forces With Chevrolet in a New Marketing Alliance

    FOOTHILL RANCH, Calif.--Aug. 8, 2002--Oakley Inc. today announced a strategic marketing alliance with Chevrolet and its Silverado 1500HD truck series.
    Terms of the coalition allow Oakley to customize four Chevrolet 1500HD Silverados for use in its sports marketing program. The customized vehicles will be displayed at auto shows and prominent sporting events throughout the country where Oakley's sports marketing team provides competition services for world-class sports professionals.
    These venues include AMA National Motocross Series, NORBA Mountain Bike Series, ESPN X Games, Gravity Games, PGA and LPGA golf tournaments, NASCAR, NHRA and various grass-roots events.
    "There's a common aim between our brands," commented President Colin Baden. "We both target durability, comfort, performance and dependability under extreme conditions. Oakley and Chevy also have a common history of supporting sports competitions, and this alliance is a way to leverage our combined visibility while showcasing the unconventional thinking behind our inventions."
    Design director for Chevrolet Truck, Clay Dean commented, "This partnership provides an opportunity to leverage the marketability of these two brands, Oakley with its long-standing alliance with high-profile athletes and its connection with youth, and Chevy with its well-earned reputation for making great trucks."
    To customize the vehicles to Oakley's standards, the company is tapping into a wellspring of industry expertise. The renowned craftsmanship of Street Concepts, a custom auto developer in California, is being utilized for surface detailing and truck bed reconfiguration. The custom riveted look paint was laid by Paint N Place. Fabtech Suspensions were enlisted to retool suspension systems.
    Fox Racing Shox and 18-inch off-road racing wheels by Concept Neeper and OMF beadlocks will arm the trucks for unforgiving terrain, and newly engineered BF Goodrich KO Mud Terrain tires will round out the stance. Powerful Kenwood sound systems and DVD navigation will pump music into cockpits fitted with custom-finished seats from Katzkin made of leather and Kevlar(R).
    Additional enhancements include off-road lighting by PIAA, Xciting lighting headlights, and APC marker lights. Tuned exhaust systems by Magna Flow and fitted bedcovers by Snug Top which encompass the completely sheetmetal beds by Twins Custom Concepts. "This isn't about adding an extra cup holder or embossing `Limited Edition' on a tailgate," said Baden.
    "We've honed these rigs into war wagons for our marketing team, combat-ready for today's asphalt jungles and off-road badlands."
    Upon completion, the vehicles will be showcased on Oakley and Chevrolet Web sites. Dedicated Web pages for highlighting features and benefits will be found at www.oakley.com and www.streetconcepts1.com.

    About the Silverado 1500HD

    The Silverado 1500HD Crew Cab is the latest edition from Chevy. Its powerhouse is a Vortec 6000 V8, and it features four-speed automatic transmission with overdrive, a true four-door design, comfortable seating for up to six people, and the durability of a machine built Chevy-tough.

    About Oakley

    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 June 30, 2002 totaled $458.9 million and generated net income of $45.5 million -- a 9.9 percent net margin.
    Oakley news 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 news 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 weakening of economic conditions could 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; 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; 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 Dec. 31, 2001 and other filings made periodically by the company. The company undertakes no obligation to update this forward-looking information.

    Note: A Photo is available at URL: http://www.businesswire.com/cgi-bin/photo.cgi?pw.080802/bb5