Sales for the first quarter were $5.0 million compared to $12.8 million for the same period in 1996. Pro-forma 1996 sales for the same period without the C.A.S. Sports close-out and brokered O.E.M. businesses sold on October 11, 1996 amounted to $9.6 million. The decline in comparable period sales is primarily due to first quarter 1996 sales to one of the Company's Japanese distributors not recurring in the first quarter of 1997. "We expect the Company's revenues to be more concentrated in the second half of the year than in 1996 due to the industry oversupply of inventory in the Japanese market,"* said Scott Stewart, chief financial officer. "In order to better compete in this difficult market, we are now selling our Ride and Preston branded products direct to many retailers in Japan, which allows us to respond faster to retailer and consumer demands."*

The net loss for the quarter was $2.2 million ($0.20 loss per share) compared to a net loss of $1.0 million ($0.10 less per share) for the same period in 1996.

"An inventory storm is blowing over the industry, causing brand and company consolidation just as we expected,"* said Robert Hall, president and chief executive officer. "Ride is well positioned to improve its market share as many of our smaller competitors falter. With Ride's strong financial position, our retailers view Ride as a stable and reliable source for top quality products."*

As previously announced, the Company will announce pre-season orders on June 30, 1997.

RIDE, INC. Financial Highlights (in thousands, except per share data)RESULTS OF OPERATIONS: Pro-forma Three Months Ended Three Months Ended March 31, March 31, 1997 1996 1996 (a) Net sales $5,034 $12,777 $9,623 Cost of Sales 3,706 9,390 6,904 Gross profit 1,328 3,387 2,719 Selling, general and administrative expenses 4,708 5,076 4,540 Operating income, (loss) (3,380) (1,689) (1,821) Interest income, net 46 175 209 Income (loss) before taxes (3,334) (1,514) (1,612) Income tax benefit (1,152) (532) (575) Net loss $(2,182) $(982) $(1,037) Per share: Primary $(0.20) $(0.09) $(0.10) Fully Diluted $(0.20) $(0.09) $(0.10) Weighted average common shares outstanding: 10,771 10,522 10,522 Primary Fully Diluted 10,771 10,522 10,522 (a) The pro-forma information for the three months ended March 31, 1996 exclude the results of the C.A.S. Sports close-out and brokered O.E.M. businesses sold on October 11, 1996. BALANCE SHEET DATA: March 31, 1997 December 31, 1996 Cash and cash equivalents $1,597 $3,232 Accounts receivable, net $8,311 $14,193 Inventories, net $6,289 $5,986 Working capital $18,435 $20,803 Total assets $44,957 $50,655 Long term debt $578 $604 Total shareholders' equity $40,169 $42,309 SOURCE Ride Inc.