Variflex To Manufacture and Market Barfoot Snowboards
(August 21, 1996)

The agreement calls for Variflex's subsidiary, Static Snowboards, Inc., to manufacture, market and distribute all Barfoot snowboards for an initial term of one year. The agreement also contains an option for the possible future acquisition of all rights to the Barfoot brand name.

Barfoot Snoboards, founded by Chuck Barfoot in 1978, was one of the first to manufacture fiberglass boards. Over the past 18 years, Barfoot has continued to contribute innovative ideas to the industry, including the widely used twin tip snowboard design. Jay Losi, President of Variflex, said "This is an exciting opportunity for Variflex. This association with Barfoot Snoboards moves Static Snowboards to the major leagues of this sport.

"Our Static factory in Huntington Beach is one of the most advanced snowboard manufacturing plants in the nation. We opened it less than a year ago to produce our own boards, as well as other brands for other producers. This new venture definitely kicks the plant into high gear."

Mr. Losi added that "Chuck Barfoot brings a wealth of snowboard design and marketing expertise to Variflex. His name is synonymous with snowboarding and I am certain that working with Mike Plunkett, Static's own snowboarding legend who runs our Static Snowboard facility, will provide a significant contribution to Variflex."

Chuck Barfoot remains a dedicated snowboarder and is committed to the industry and this new project. He said "I look forward to working with the Static team. I have known Jay Losi and Mike Plunkett for years and I am confident that together we can be tremendously successful."

Barfoot also brings to Static high visibility on the professional snowboard circuit, as its current snowboarding team consists of a strong and talented group of snowboarders including Sean Lake, Tara Zwink, Jeff Krebill, Kenny Hill and Zack Templin.

Static Snowboards presently manufacturers nine models of snowboards in Freestyle, All Mountain and Kids styles. All Static snowboards have a vertical laminated wood core, an epoxy adhesive matrix, stainless steel inserts, Rockwell 48 edges, PT 1000 base material and ABS top sheet and sidewall material.

Variflex, Inc. is a leading supplier of in-line skates, skateboards, skating protective equipment and bicycle and recreational safety helmets to the mass market. Variflex's new Static(TM) brand of high quality action sports products, including in-line skates, snowboards and skateboards are high-performance, aggressively-priced, upscale products marketed to the sporting goods and specialty dealer markets.