PR: DNR Confident To Maintain Sims License
(October 7, 1996)

Zurich, Switzerland--On October 1, 1996, Tom Sims issued a press release stating that he had "given notice of termination and revocation of the license to DNR Sportsystem, Ltd." to market and distribute snowboarding products under the Sims brand name, alleging that DNR Sportsystem was not in compliance with the License Agreement.

In commenting on the allegations, DNR President and CEO, Lucio Roffi said: "DNR has performed far beyond the greatest expectations outlined in the license agreement. The allegations made by Tom Sims are without merit. DNR is in full compliance with the terms of the License Agreement and emphatically and categorically denies the baseless assertions made by Tom Sims."

In 1990, Tom Sims licensed the Sims brand name to DNR. The license granted DNR the rights to market and distribute snowboards, snowboard boots, and snowboard bindings under the Sims brand name worldwide, exclusive of North America. The current agreement is effective until June 30, 2001.

In 1996, having recognized the value that DNR has created in the Sims brand worldwide, Tom Sims determined that it would be to his financial advantage to regain DNR's worldwide distribution rights under the License Agreement. After an unsuccessful effort by Tom Sims to negotiate a repurchase of DNR's rights under the License Agreement, Tom Sims is now attempting to Terminate the License Agreement based on broad allegations that DNR is not in compliance with the agreement. DNR vigorously disputes those allegations.

Lucio Roffi also said: "DNR is confident that it will continue to operate under the terms of the License Agreement and is completing preparations for the introduction of the 1997 Sims line in it's territory. We do not anticipate that the actions taken by Tom Sims will have an impact on the current or future operations of DNR."

DNR Sportsystem Ltd. is one of the largest suppliers of snowboard products worldwide and sells through distributors in more than 30 countries under the brand names Santa Cruz and Sims.