-- Fiscal 1997 Earnings Per Share Increase 90%; Sales Up 35.8% --

Vans, Inc. (Nasdaq:VANS) today announced record financial results for the fourth quarter and year ended May 31, 1997.

Net sales for the quarter increased 22.7% to $39.2 million, compared to $32.0 million for the fourth quarter of fiscal 1996. Fourth quarter net income rose to $2.7 million, versus net income of $1.5 million in the same period last year. Earnings per share for the fourth quarter rose significantly to $0.20, versus earnings per shareof $0.14 in the fourth quarter of 1996.

Net sales for the year increased 35.8% to a record $159.4 million, compared to $117.4 million in fiscal 1996. Net income for the year increased to $10.4 million, versus $4.2 million last year. Earnings

per share increased 90.0% to $0.76 over the $0.40 reported last year."Fiscal 1997 was a banner year for Vans and we are pleased to announce another record quarter of sales and earnings," stated Gary H. Schoenfeld, President and Chief Executive Officer. "Since completing our Secondary Offering 14 months ago, we have made great strides, including important investments in marketing the VANS brand,expanding our international presence by acquiring our U.K. distributor and forming subsidiaries for Mexico, Brazil and Argentinawith a significant partner, and broadening our sourcing to include China. These initiatives have translated into a more powerful VANS brand, which is reflected in the strength across all of our distribution channels throughout the year."

Vans' wholesale business increased 23.6% and 39.0% for the fourth quarter and 1997 fiscal year, respectively. Fourth quarter sales to national accounts rose 16.4% and were up 26.6% for the year. The Company posted sales gains of 37.5% internationally for the fourth quarter and 68.0% for the year.

Sales through the Company's 84-store retail chain in the fourth quarter increased 20.0% to $9.7 million, from $8.1 million for the same period a year ago. Retail sales for the year increased 26.0% to$37.0 million. Comparable store sales rose 18.0% for the quarter, and 17.1% for the year.Mr. Schoenfeld continued, "Our wholesale business continues to growwith both major accounts and independents in the United States and our international business remains our fastest growing channel with sales now in more than 70 countries. Our retail stores have performed extremely well and continue to provide us with valuable exposure to our target customer."

The Company stated that its gross margin of 38.4% for the fourth quarter was below the fourth quarter last year, primarily due to a 50% ramp-up in production at its Vista, California facility to meet increased international demand for Vans' domestically produced product. For the year, gross margin was 39.3%, versus 39.4% last year.

Operating expenses for the year declined as a percentage of sales from 32.3% to 30.7%. Included in these numbers was an increase in marketing, advertising and promotion expense from $8.3 million to $13.2 million, or from 7.1% of sales to 8.3% of sales. "As our business expands, we remain focused on leveraging our operating expenses while at the same time furthering our investment in the long-term strength of the VANS brand through more extensive marketinginitiatives," stated Mr. Schoenfeld.

The Company further stated that, in-line with its increased level ofsales, inventories increased from $19.4 million at May 31, 1996, to $25.1 million at May 31, 1997, and receivables rose from $20.8 million to $24.4 million. Included in year-end inventory is an increase of approximately $1.5 million in next season's snowboard boots, and approximately $900,000 of inventory from Vans' U.K. subsidiary, which was acquired in November 1996.

Mr. Schoenfeld concluded, "We believe our performance over the past two years validates our strategy of focusing on the 30-year heritage of the Vans brand. Despite some near-term uncertainty surrounding the athletic footwear market, we remain very enthusiastic about Vans'business worldwide. Our early bookings for the second quarter are up; we have received a strong initial response to our Spring `98 products from both our major accounts and key independents; Vans' retail stores continue to perform very well; and we look forward to achieving our goals and another record year in fiscal 1998."

Vans, Inc. is a branded manufacturer, wholesaler and retailer of active-casual footwear and apparel, performance footwear for enthusiast sports, snowboard boots and snowboarding outerwear. Products are sold through a network of independent and national retailers, internationally through distributors for 77 countries and Company subsidiaries in the United Kingdom, Mexico, Brazil and Argentina, and through 84 Company-owned stores and factory outlets.