February 24, 2000

Sno FAX

New Moves

The Familie Sports Agency has moved. They can now be reached at: 6725 Luciernaga Place, Carlsbad, California 92009; Phone: (760) 602-6200; FAX: (760) 602-9800.

U.S. Ski And Snowboard Team Partners With RSN For Enhanced Web Presence Resort Sports Network, (http://www.rsn.com), the resort information and entertainment company, has partnered with the U.S. Snowboard and Ski Team to provide the full power of RSN’s media to the team’s Web presence. The team’s Web site–www.ussnowboardteam.com–is in its fourth year of providing news and information on the U.S. Snowboard and Ski Team’s athletes and events.

As a part of the partnership, RSN is providing the team with technical support in ongoing development of its Web presence. In addition, RSN will distribute weekly text and image updates from the team’s many snowboard and ski competitions around the world. The content will appear on rsn.com and will be redistributed to several partner sites including GoSki.com, which is jointly owned by RSN and Go Group, LLC.

The team’s site provides 24-hour news updating from snowboard and ski events around the world, plus bios on top U.S. Snowboard and Ski Team athletes. The site also provides direct interactive access to competition results and ranking lists for the more than 20,000 athletes in the Team’s U.S. Snowboard and Ski Association competition programs.

As part of the initiative, RSN will also sell banner ads for the team’s site, generating additional funding to support the team. RSN will also be developing e-commerce solutions allowing the team to sell team products online. The team will supply content to RSN’s resort and metro markets via its television network and through its Web distribution partners.

Dryve Snowboards Best Season Yet The ’98/99 season marked the best yet for OEM Production Dryve Snowboards. Dryve picked up things last season with companies such as Arrowhead Mountain Spring Water, Poland Spring Water, Nutrament, Surge (a division of Coca-Cola), 1-800-CALL-ATT, and Kahlua. All the companies involved are using Dryve to manufacture boards for winter promotions.

Impact Pictures Presents Short Film In 3-D

Impact Pictures is producing a new 3-D film titled Sickness and Health, A Soulful 3D Extreme Sports Film. The film is a three-dimensional 35mm film intended to present world-class riding among the elite athletes of snow, skate, and surf sports. The production effort includes the industry’s top video producers, Taylor Steele and Jamie Mosberg, as well as each sport’s marquee riders. For more information on product placement or sponsorship opportunities contact Chris Panaia at: (562) 592-1463.

Naya Water Endorses American Snowboard Tour

Naya Canadian Natural Spring Water entered into an exclusive agreement to be the "official water" of the American Snowboard Tour (AST). Naya has also signed Olympic Snowboarding Bronze Medalist Ross Powers to be part of the ’99 Team Naya Lineup. Powers along with other athletes, will have his photo featured on the outside label of bottles of Naya, as well as his success story of what makes him "hungry for life" underneath the label.

SF Interactive Launches Web Site For Moonstone

SF Interactive has launched a Web site for Moonstone Mountain Equipment, a manufacturer of extreme-sports clothing. The new site (www.moonstone.com) gives retailers, vendors, sales representatives, consumers, and other interested parties the opportunity to view Moonstone products and make purchasing decisions via an online medium. The site has features that include an online workbook with product illustrations where a buyer can look at upcoming lines, and a "For Our Partners" section where retailers can find information on incentive programs.

Duofold Launches Its First Licensing Program

Gold Medal Design Studio, of New York and Colorado, officially received licensing rights to launch sport-specific socks and gloves. The high-performance socks and gloves are available in varying thickness to accommodate a variety of sports. According to Duofold’s John Wilson, the agreement with Gold Medal is part of a new companywide initiative to extend the equity of the Duofold name to compatible high-performance outdoor accessories and apparel.

Grindrite Introduces New Products For 1999

Grindrite’s ST3200 is a universal machine that tunes everything from snowboards to skis. Features include electronic variable speed, wide stone and belt, variable speed dresser with controlled diamond advance for infinite grinding patterns, and dual operator capability for maximum productivity. New pressure strips from Grindrite allow shop techs to apply extra pressure on specific areas of the snowboard base. Shop techs can grind and sand boards without touching the bindings with the Grindrite snowboard bridge. The durable, lightweight bridge has molded rubber feet for smooth ramp transition, aluminum construction for stiffness and weight, and an adjustable height disc to compensate for board flexing. The Tech Tip Manual is a pocket-sized guide that answers many of the frequently asked questions about tuning and safety.

Grindrite Manufacturing has also announced it will offer a two-year warranty on all of its tuning machines delivered after February 15, 1999. The models included are the ST500 Mini-Edger, ST490 Fat Hot Belt Waxer, ST600 Universal Sander, ST1800XL Universal InLine Combo, and the ST3200 Universal DoubleWide Combo.

Grindrite has been appointed the new distributor for Dominator Performance Wax in North America. Distribution will be for specialty ski and snowboard shops and retail chain stores. Dominator is the only wax line containing in-house produced fluoros giving them the ability to offer higher levels of fluoro at lower costs. Dominator manufacturer Velocity Ventures, Inc., designs and produces its own molecularly-engineered fluoro formulations.

Pro Boarders Get High In The New Big Air Series On Board Entertainment is proud to announce the fourth annual OBE Big Air Series, a pro-invitational snowboard competition, presented by K2 Snowboards and Bud Light. The only series of its kind, OBE Big Air was created by snowboarders for snowboarders, and attracts some of the biggest names in big-air snowboarding. The OBE Big Air Series will appear at snowboard festivals across America. In addition to the competition, OBE’s festivals feature a concert with four top alternative bands performing on a mountain stage. There will be a full-tilt interactive consumer trade show with free equipment demos, local shops, Internet booths, video games, and more. Television coverage of The OBE Big Air Series will be produced by Board Wild and will be aired on Fox Sports Network in the spring and fall of ’99. The presenting sponsors of OBE’s festivals include K2, Bud Light, and Zumiez. The next competitiion will be Snow Job, Saturday, April 24 at Mount Hood Meadows in Portland, Oregon. For more information about On Board Entertainment and their sponsorship opportunities, please call (415) 289-1510, or go to www.onboardent.com

Whistler/Blackcomb Open Mountain Office

Whistler/Blackcomb and BC Tel have opened an on-mountain business communications center to help skiers and snowboarders stay in touch with the office while on vacation at the resort. Located in the new Roundhouse Lodge on Whistler Mountain, the Guest Communications Center offers an array of business services including a real-time Bloomberg financial wire service for guests to access all major markets in the world as well as current financial news stories. The center was put together in response to frequent requests from guests wanting access to telephones and online communication.

Technine Shoots Out First Pro-Model Binding

Technine recently unveiled its first pro-model binding. The Ali Goulet Signature model features a durable, lightweight plastic base with fully adjustable metal heelcup, Comfort King straps, ratchet buckles, and a lifetime warranty.

Multimedia Productions Releases New CD ROM

Multimedia productions new CD ROM entitled Virtual Snowboarding contains instructional content in addition to its entertainment value, and music. Features include a school section where you can select from beginner instruction videos, pick a trick narrated by Neal Drake, or view sequences of Todd Richards. Virtual Snowboarding has a retail price of $19.95 and can be purchased from music stores, snowboard shops, or through its main Web site at www.snowboardstuff.com/vcsd

Kucera Designs Launches Jewel

Kay Kucera and Lori Fitzgerald have teamed up to create Jewel, a line of inner- and outerwear for athletic women. The Jewel line was conceived four years ago for a women’s fashionable yet technical snowboard line. This year Kucera and Fitzgerald decided to increase production and are offering Jewel to specialty stores nationwide. For more information contact Lori Fitzgerald at (801) 816-9969.

Concept III Textiles Expands To Europe

The New Jersey-based international textile marketing group, Concept III, has purchased its European counterpart, Advanced Textile Concepts, with offices in Northern England. ATC is a marketer and supplier of performance textiles such as Outlast temperature regulating fabrics. With the acquisition of ATC, Concept III will consolidate and expand the growth of all products marketed by the two companies.

American Skiing Company Teams Up With Swatch/Palmer Snowboards To Build Boardercross Courses Palmer Snowboards, Swatch, and American Skiing Co. have announced plans to build permanent boardercross courses this season at all resorts nationwide. What distingues a boardercross park from a terrain park is that each element flows into the next. Snowboarders take the course as one fluid run, instead of the traditional way–stopping between hits. Swatch Palmer X Parks will be featured at American Skiing Company resort events such as Bud Light BoarderFest and Swatch Palmer X Park series.

Yakima Kicks Off Rack Dawg University

Rack Dawg University is a comprehensive training program designed specifically for Yakima’s nationwide dealer network. Held on February 17 of this year, the event focuses on fine-tuning product knowledge, improving customer service skills, and increasing confidence levels of shop sales staffs. Dealers and reps agree, a properly trained sales staff has a major impact on any shop’s performance, increasing both sales and profits.

MLY Opens Canadian Branch Office

MLY Snowboards has announced the opening of its Canadian branch office in Vancouver, British Columbia. The office will be overseen by CFO Blair Mills and Sales Manager Sean Sullivan. The addition of the MLY Canadian branch will allow Canadian retailers the opportunity to buy product with Canadian currency and work with a Canadian company without incurring the additional costs of a distributor’s margin.

Inca Returns With A New Snowboard

The Inca Corporation is introducing the new Dual Camber Snowboard. Much like a ski has a camber (the arch that raises the foot) for each foot, The Dual Camber has a camber for each foot providing more shock absorption. The board ensures more contact between the riders feet, eliminating vibration, and provides a true circular path through the snow. For more information call the Skyline Northwest Corporation at: 1-800-547-8664.

The Gravity Games Get A Winter Companion The inaugural Winter Gravity Games is set to debut from February 3—6, 2000, and air on NBC in mid February 2000. A companion to the Gravity Games this September, the new festival will feature various other winter sports besides snowboarding. A Winter Games Committee consisting of representatives from NBC, EMAP Peterson Inc., and Advantage International are in a selection process to determine which city/resort will host the festival. The final decision is expected to come in April.

Santa Cruz News

S&J Sales Company Limited announced the signing of a long-term agreement for the Canadian distribution of Santa Cruz snowboards, bindings, boots, outerwear, goggles, and accessories. S&J’s goal is to reintroduce the Santa Cruz name to the Canadian market.

In what they’re calling a big group-hug day, Santa Cruz brought its rep force and team riders to Santa Cruz, California and then to Dodge Ridge for some product testing. Besides checking out boards and outerwear, the group hit the lodge for a Guinness drinkfest where helmets were required.

Santa Cruz team riders can be seen on 50 billboards each throughout the San Francisco Bay Area. Marissa Stoller is pictured for Sugar Bowl while Jason Cockrum is pictured for Dodge Ridge.

Grindrite Appointed Distributor For Dominator Wax Grindrite has been appointed the new distributor for Dominator Performance Wax in North America. Distribution will be for specialty ski and snowboard shops and retail chain stores.

Oregon Company Acquires Assets Of Industrial Screenprint Inc. Creative Edge Graphics announced that it has purchased the assets of the Auburn, Washington-based Industrial Screenprint, Inc. for an undisclosed amount. CEG’s existing Portland, Oregon facility will move to the Auburn location, and the company will operate under the name Creative Edge Graphics, Inc. The combined equipment and capabilities of the two companies will allow CEG to offer digital, screen print and offset sublimation, direct epoxy printing, and general graphic services for the snow- and water-sport markets. CEG will also produce decals, nameplates, posters, and other general and specialty printing services.

Vail Resorts, Inc. To Acquire Grand Teton Lodge Company From CSX Corporation Adam Aron, chairman and chief executive officer of Vail Resorts, Inc. and John W. Snow, chairman and chief executive officer of CSX Corporation announced that their companies have entered into a contract for Vail Resorts to acquire the Grand Teton Lodge Company from CSX Corporation. The transaction, valued at approximately 50-million dollars, is expected to close in early summer, subject to National Park Service approval. The Grand Teton Lodge Company operates Jenny Lake Lodge, Jackson Lake Lodge, and Colter Bay Village, all located within Grand Teton National Park in Jackson Hole, Wyoming. The company also owns the Jackson Hole Golf & Tennis Club as well as approximately 30 acres of undeveloped land held for future development.

New Online Board Site

A new Web site for snowboarders, skaters, and surfers has been launched at boardpark.com The Site is a comprehensive database of information designed to help boarders find what their looking for on the Web. Originally an online magazine, the new aim is to organize content clearly for all three sports.

New Backcountry Access In The San Juan Mountains

Based in Creede, Colorado, San Juan Snowcat Access provides the only backcountry snowcat access in the Lost San Juan Mountains. For information call: (719) SKI-2-SKI.

O.T.B. Retail System Offers New Version

O.T.B. Retail System has announced the release of version 4.0 of their open-to-buy software–The O.T.B. Book. The program carries a performance guarantee of leaner, better balanced, faster turning inventory with fewer markdowns and an improved cash flow. For more information visit their Web site at www.otb-retail.com or call Mort Haaz at 1-800-444-4462.

FLF Films Announces Latest Project

Now in their eleventh season, FLF Films has announced the production of it’s newest film for the ’99/00–Northpark. Currently underway, the production uses an all-star cast of riders to help shape the film. Anyone interested in sponsorship can contact Stephen Astephen at: (760) 612-1825.

New Original Sin Spring Promotion

"Pack Your Neon" is a new spring promotion between Original Sin and animalhouse.com The promotion runs until May 5 and gives players a chance to win a Dodge Neon packed with goods as the grand prize. Animalhouse.com is a online community targeted at eighteen to 25 year olds and serves 2,400 campuses nationwide. The sweepstakes will be marketed both online and off with print ads running in USA Today and posters at colleges nationally.

Columbia Sportswear Announces Layoffs

After an in-depth review of expense items in its budget, Columbia Sportswear decided to lay off 35 regular employees from its headquarters in Portland, Oregon. The decision came after the company decided cost-cutting measures were needed to keep profitability up. Domestic sales orders for Fall 1999 were trending flat from a warmer-than-normal 1998 winter season.

New Alphanumeric Video

In March, Alphanumeric’s team consisting of Russell Winfield, Jeremy Jones, and Jeremy Jaye were filming the new video The Revival. Shot in Utah, the team also provided autographs at Milo’s Board Shop, Blindside, Skate Street, and Norda’s to showcase the Alphanumeric line for Fall 1999.

Financial News

Columbia Reports Record Results–1998 Net Income Up 34 Percent

Columbia Sportswear Company announced record fourth quarter net sales of 111.2-million dollars for the period ended December 31, 1998, an increase of 16.9 percent over net sales of 95.1-million dollars for the same period of 1997. The Company reported net income for the period of 7.2-million dollars, a 56.5-percent increase when compared to the Company's pro forma net income of 4.6-million dollars for the same period of 1997. Earnings per share for the fourth quarter of 1998 were $0.28 (diluted), on 25.6-million weighted average shares outstanding for the period compared to pro-forma earnings per share of $0.24 (diluted) on 19.1-million weighted average shares outstanding for the fourth quarter of 1997.

Growth in sales and earnings for the period were primarily attributable to continued strength in the company’s European and Canadian operations. For 1998, the company reported record net sales of 427.3-million dollars, an increase of 20.9-percent over net sales of 353.5-million dollars for 1997. The company reported net income for 1998 of 32.7-million dollars, a 34.0-percent increase when compared to the Company's pro forma net income of 24.4-million dollars for 1997. Including a one-time tax benefit of 2-million dollars which occurred in the first quarter of 1998, earnings per share for 1998 were $1.36 (diluted), on 24.1-million weighted average shares outstanding for the period, compared to pro forma earnings per share of $1.28 (diluted) on 19.1-million weighted average shares outstanding for 1997. For 1998, the company’s domestic, Canadian, and international sales increased 17.1-percent, 24.6-percent, and 48.5-percent, respectively, over 1997. Strong domestic sell-through of spring sportswear in the first and second quarters, and strength in the Company's European and Canadian operations in the third and fourth quarters contributed to sales growth for the year. These factors also positively affected earnings for 1998 compared to 1997, as did the recording of a one-time 2-million dollars deferred income-tax benefit upon conversion to a C corporate status in conjunction with the company’s initial public offering in the first quarter of 1998.

Intrawest Announces Second Quarter Results

Intrawest announced that income from continuing operations for the second quarter was 2.9-million dollars ($0.07 per share) down from 4.2-million dollars ($0.12 per share) last year. In spite of the lowest snowfall in 40 years in Colorado and unseasonably warm weather on the East Coast early in the season, total company EBITDA for this period was 24.4-million dollars, approximately the same as the prior year. Higher depreciation and interest, partially offset by lower income taxes, reduced net income. Year-to-date income from continuing operations was 0.3-million dollars ($0.01 per share), the same as the six month period last year.

Revenue from ski and resort operations was 95.0-million dollars in the second quarter–87.7-million dollars from the mountain resorts and 7.3-million dollars from Sandestin and Raven. Overall, revenue at the mountain resorts increased nine percent compared with last year, due to the increased ownership of Mammoth and same resort growth. Revenue increased seventeen percent at Whistler/Blackcomb as a result of record early season business, and Tremblant improved twelve percent mainly due to increased retail and lodging revenues. Colorado’s poor snowfall resulted in reduced revenues at Copper, and the unseasonably warm weather on the East Coast lowered revenues at Snowshoe and Stratton.

Operating profit from ski and resort operations for the second quarter was 9.4-million dollars, 26 percent higher than the prior year. Year-to-date ski and resort operations revenue increased 40 percent and operating profit increased 34 percent over the comparable period last year.