PR: Morrow Snowboards' Year End Numbers
(February 20, 1997)

SALEM, Ore.--Feb. 20, 1997--Morrow Snowboards Inc. (NASDAQ:MRRW) today announced financial results for the year and fourth quarter ended Dec. 31, 1996.

Net sales for the year were $31,699,000, or 29% above 1995's total of $24,586,000. Net income for 1996 was $2,147,000, an increase of 343% from 1995's net income of $485,000. Earnings per share for 1996 were 36 cents on a weighted average of 6,030,000 shares outstanding, compared with 14 cents on a weighted average of 3,937,000 shares in 1995.

"1996 was a very successful year for us," commented David Calapp, chief executive officer of the company. "We gained share in a growing market, and the Morrow brand continued to strengthen with retailers and consumers. Excluding original equipment manufacturing revenue from 1995 revenue totals, the annual growth rate for Morrow-brand products was over 50%. We also improved our margins from 1995 levels. Our gross margin for 1996 was 34.2% compared with 30.2% a year ago, and our pretax margin increased from 3.0% to 10.8%.

"Looking forward," Calapp concluded, "at industry trade shows this year we are showing exciting new snowboard models, a completely revamped boot line, new technical bindings and our expanded line of apparel and accessories. The reception to date has been very positive. We are encouraged by our strong market position and momentum within the industry, and we look forward to further growth in 1997."

Net sales for the fourth quarter of 1996 were $9,347,000, compared with $9,623,000 in the prior year's fourth quarter. During 1996, the company improved its delivery schedules in response to customer demand, thereby moving more shipments into the third quarter and out of the fourth quarter, compared with 1995 delivery schedules. Net income for the 1996 fourth quarter was $450,000, compared with net income of $703,000 recorded in the fourth quarter last year. Earnings per share for the 1996 fourth quarter were seven cents, compared with earnings per share of 16 cents in the 1995 fourth quarter. The weighted average shares outstanding in the 1996 fourth quarter were 6,031,000, compared with a weighted average of 4,315,000 shares outstanding in the comparabnowboards and related products.

Value 9553.00 
Down -6299.90

Symbol  Shares  Last/NAV   Change   Pur.Price   Gain/Loss      Value
CALP    100.00     15/16    -3/32     3 13/32     -246.80      93.70
KTO     100.00    27 5/8     -1/8      25 3/8     +225.00   2,762.50
MRKR    100.00     4 7/8        0       7 3/4     -287.50     487.50
MRRW    100.00     6 3/4        0      11 1/2     -475.00     675.00
OO      100.00         9        0      42 3/8   -3,337.50     900.00
QUIK    100.00    23 1/2   -1 5/8      34 1/8   -1,062.50   2,350.00
RIDE    100.00   4 27/32    -1/32      11 7/8     -703.10     484.30
VANS    100.00    12 7/8     +1/4      14 7/8     -200.00   1,287.50
VFLX    100.00     5 1/8     -1/8       7 1/4     -212.50     512.50