PR: Ride, Inc. Announces Inventory Write-Downs And Restructuring Expected Results for Fourth Quarter Released
(December 30, 1996)

Non-recurring charges totaling $9.0 million are being taken in the fourth quarter of 1996, comprised of $6.5 million in inventory write-downs and $2.5 million in other restructuring charges. "We continue to have excess inventories, due primarily to canceled commitments from a Japanese distributor and from an oversupply of snowboards from other manufacturers" said Scott Stewart, chief financial officer. "As a result, we are writing down our inventories to reflect their lower value as close-out items. In addition, we are taking non-recurring restructuring charges which primarily relate to recent changes in our production of bindings, including the move of binding production out of our Preston, Washington facility." All but $350,000 of these write-downs and restructuring charges are of a non-cash nature, as they relate to asset write-downs rather than cash outlays.

Consolidated sales for the fourth quarter are expected to be in the $13 million to $15 million range, compared to $25.7 million for the same period in 1995.* Fourth quarter 1995 pro-forma consolidated sales without the C.A.S. Sports close-out and brokered O.E.M. businesses sold on October 11, 1996 amounted to $15.2 million. Consolidated sales for the year ending December 31, 1996 are expected to range from $74.6 million to $76.6 million, compared to $74.8 million in 1995.* Pro-forma consolidated sales without the C.A.S. Sports close-out and brokered O.E.M. businesses sold on October 11, 1996 are expected to be in the $59.5 million to $61.5 million range, up from $54.7 million in 1995.*

Excluding the effects of the non-recurring inventory write-offs and restructuring charges, operating results are expected to be as follows:*

Net loss for the fourth quarter is expected to range from $2.2 million to $2.4 million ($0.20 to $0.22 per share), compared to net income of $1.87 million ($0.16 per share) for the same period in 1995.* Pro-forma fourth quarter net income without the C.A.S. Sports closeout and brokered O.E.M. businesses sold on October 11, 1996 would have been $1.3 million ($0.11 per share) in 1995. Net income for the year ending December 31, 1996 is expected to be in the $1.1 million to $1.4 million range ($0.10 to $0.12 per share), compared to 1995 net income of $5.95 million ($0.57 per share).* Pro-forma 1996 net income without the C.A.S. Sports close-out and brokered O.E.M. businesses sold on October 11, 1996 is expected to amount to range from breakeven to $400,000 ($0.00 to $0.03 per share), compared to $5.2 million ($0.49 per share) in 1995.*

The foregoing expected operating results include approximately $600,000 in management transition expenses, consisting primarily of severance compensation for the fourth quarter and approximately $1,000,000 in such expenses for the year. Also included in the expected operating results is a gain of $500,000 from the October 11, 1996 sale of the closeout and brokered O.E.M. business segments of the company's C.A.S. Sports subsidiary.

"We continue to see strong growth in the worldwide snowboard industry at the retail level,"* said Robert Hall, president and chief executive officer. "While sell-through of Ride's products appears to be favorable, excess inventories throughout the snowboard industry from oversupply has led to discounting, putting strong pressure on gross margins in the fourth quarter.*

We continue to see rapid consolidation taking place in the industry, with smaller competitors losing market share to the more dominant players.* With our overall #2 market position, a strong balance sheet and our restructuring behind us, we believe that Ride is firmly positioned as a leader in this growing market and is well-prepared to take advantage of the opportunities we see emerging from the ongoing industry consolidation and growth."*

* Denotes a forward looking statement. To the extent that this press release discusses financial projections, information or expectations about the Company's products or markets, or otherwise makes statements about the future, such statements are forward looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the timely availability and acceptance of new products, the Company's dependence on outside manufacturers, the management of growth and the other risks detailed in the Company's reports on Forms 10-K and 10-Q, including the Form 10-K filed for the year ended December 31, 1995.