February 25, 2000

SnowFAX

New ASS-MIA News

ASS Industries is the new accessory sponsor of Whitey McConnaughy’s (Kingpin Productions) new video out in the Fall of ’99 entitled The Revival. MIA Snowboards is proud to be the largest industry sponsor of the Snowboard Outreach Society (SOS), based in Vail, Colorado.

Live To Play Hires New Heights LiveToPlay, Inc., the premier online auction Web site specializing in high-quality outdoor sports gear, has hired PR agency New Heights, Inc. to develop and manage its public relations campaign.

MLY Commits To Building Strong Dealer Network

MLY Snowboarding announced it will not accept product orders for mail order and Internet retailers during the 1999/2000 season. All consumer purchases must be made at an MLY or M3 dealer location. For more information call: 1-800-305-4138.

Kavu Plans Five-Month-Long Promotion Tour Kavu clothing company has announced plans for a summer-long promotion tour. The company, which is now being distributed overseas in Japan, New Zealand, Korea, Mexico, Costa Rica, Chile, Peru, Canada, and fifteen countries in Europe, has plans to drive a van cross-country supporting an array different events in the name of the four-year-old company. Each week a different employee–from the shippers to the company president–will navigate a different territory. One van, fourteen employees, four months, and 10,000 miles.

Official Name Of SIA Program Changed The official name of SIA’s Deduct-A-Ski/Deduct-A-Board marketing program will be Donate-A-Ski/Donate-A-Board. Survey results of last year’s program participants indicate that skiers and riders are primarily motivated to donate their used ski and snowboarding clothing and equipment because it will be put to good use. More than 9,000 units of skis, boots, poles, snowboards, and ski clothing were collected during the East Coast roll-out of the 1998/99 Deduct-A-Ski/Board program. A total of 35.5 tons of equipment were collected including 4,125 pairs of downhill skis, 800 pairs of cross- country skis, 1,300 pairs of boots, 1,850 sets of poles, six snowboards, 400 parkas, 275 sweaters and 250 pairs of ski pants and bibs.

Five charities were the recipients of the donated gear. Deduct-A-Ski/Board is sponsored by the SIA Ski Education Foundation, the charitable arm of SIA, and RPS, a national small-package delivery company.

Smokin’ Boards Introduces New Construction For 1999/2000 Smokin’ Boards has started production for their 1999/2000 line and is introducing a new P-Tex 2000 sidewall construction. The new sidewalls are more durable and easier to repair than the traditional ABS sidewalls, and are combined with polyurethane tip bumpers that offer excellent characteristics unobtainable in the cap line. For more information about Smokin’ Snowboards and the North Shore Militia call: (530) 546-2690.

Pan•Optx Introduces Second Generation "Goggle In A Sunglass"

The Viper is the second generation of Pan•Optx two-in-one "Goggle in a Sunglass" patented wrap sport glass technology. The design encloses and seals the eye like a goggle, but has the look of a sunglass.

The soft foam of its patented Orbital Seal functions as an enclosed protective enviroment for the eyes. In addition, the seal assures a secure fit, with or without a helmet, and dampens the vibrations that naturally occur at all speeds of recreating. The Viper lenses are shatter resistant polycarbonate with inner thermal pane, dual lens, anti-fog coating and 100-percent UV protection.

Invert ’99 Becomes "Invert TV" On Fox Sports Net The Huffman group announced that it has signed a deal with FOX Sports Net’s "G-Shock Rush Hour" block that airs to 62-million homes between 4 p.m. and 5 p.m., Monday through Friday. It features events, athlete profiles, product segments, historical footage, etc. for alternative sports. A total of thirteen original episodes will be produced and aired over twenty-six consecutive weeks. For sponsorship opportunities contact Todd Huffman at: (714) 847-5003.

Gen-X Equipment Discontinues Step-In Boot And Binding System Gen-X Equipment Inc., a wholly owned subsidiary of Global Sports Inc. wishes to confirm that it has discontinued and relinquished its Master Distributor Agreement with Innova Concepts and the Buzrun Step-in boot and binding system.

As result of information only recently available, it has been brought to the company’s attention that the product might infringe on existing patents, and for this reason it has decided to discontinue distribution of all Buzrun products.

Dissun Furst And Partners Emerges For Sports Consulting Dissun Furst and Partners LLC (DFP), a sports marketing consultancy, announced its formation to focus on helping corporate clients support and sponsor high-growth non-traditional sports and entertainment events. The new group consists of a number of experienced individuals including a former Olympic cycling gold medalist and one of NASCAR’s most successful marketers.

DFP will have offices in eight major U.S. markets with the Action Sports and Music offices headed by Bonnie Crail in Huntington Beach and Dan Hirsch and Sarah Haynes in San Francisco. Crail, Haynes, and Hirsch will work to bring corporate clients directly to the alternative sports and music scene. Their goal is to steer clients to the best run most credible events in the category, and to oversee strategic marketing and sponsorship activities therein. For information call: (714) 536-8720.

Concept III To Represent Kingwhale Concept III, the New Jersey-based international textile marketing group, is now representing Kingwhale, a large producer of fleece products in Taiwan. Concept III and Kingwhale have developed a comprehensive worldwide sourcing and servicing system for a new quality, non-pill micro-polyester and spun polyester fleeces. For more information on the Concept III Kingwhale program, contact the Concept III office at: (732) 530-1976.

Premier Venture Firms Back E-Commerce Sporting-Goods Site Donaldson, Lufkin and Janrette (DLJ), Inc. announced that the Sprout Group, DLJ’s venture-capital affiliate, led an eight-million-dollar second closing of an investment in Fogdog Sports (www.fogdog.com), a leading internet retailer of sporting goods, based in San Jose, California. Other members of the investor group included Marquette Venture Partners, and Intel Corporation. The funding will be used primarily for sales and marketing expansion, growing the Fogdog brand, and building a distribution infrastructure.

The Closest Thing To Snowboarding In The Summer Until winter arrives, the closest you’ll get to snowboarding is riding

the FB-100 from Freebord Manufacturing in San Francisco. Freebord’s six wheels enable all the carving and sliding motions of a snowboard–on the pavement. Riders can float long drifting slides or edge in to cut

speed. Give them a call at: (415) 285-2673, or check out the video at:

www.freebord.com

Flux Sponsors New Mack Dawg Video Flux Binding Systems announced that the compny has signed a sponsorship agreement with Mack Dawg Video for its new ’99/00 video, Technical Difficulties, to be released this winter. The sponsor package includes Flux Binding’s logo on the front of the movie box cover, logo at the beginning of the movie, and promotional posters with the Flux logo sent to distributors and shops worldwide.

Deduct Nonmoving Sports Inventory

Overstock, nonmoving inventory of sporting goods, apparel, and any sports-related products can be turned into a federal income tax deduction when your business donates those products to charity. In some cases, the deduction can be as much as twice cost. A free guide is available that includes step-by-step instructions on the donation process as well as a formula for calculating your company’s potential tax savings. To receive a free copy of this guide, call the nonprofit National Association for the Exchange of Industrial Resources at: 1-800-289-4551.

Two Airlines Planning Service To South Lake Tahoe Two airlines–Allegiant Air, based in Fresno, California and Tahoe Air, based in South Lake Tahoe–are planning year-round, scheduled jet service into South Lake Tahoe Airport. The airport is located just six miles from the California base of Heavenly Ski Resort, which is owned by American Skiing Company.

Allegiant Air announced eight round trips per week: four nonstop flights from Hollywood/Burbank to South Lake Tahoe, and four direct flights from Fresno to Las Vegas with continuing service to South Lake Tahoe. Allegiant Air direct-books its flights by phone (toll free reservations line: 1-877-202-6444 and is developing booking via the World Wide Web (www.allegiantair.com). Tahoe Air will direct-book passengers from its website (www.tahoeair.com); via toll-free telephone (888-TAHOEAIR) and through travel agents.

Variflex To Introduce Licensed X-Games Products

Variflex Inc. announced that it will introduce a line of snowboards, in-line skates, accessories, helmets, and yo-yos under a license agreement to produce X-Games-identified merchandise.

Salt Lake Olympic Committee (SLOC) Announces Mascots

Using modern-day intrepretations of Native American petroglyphs (rock drawings), the SLOC announced its three mascots for the 2002 Winter Games. The mascots include the Snowshoe Hare, the Coyote, and the American Black Bear and have corresponding modern-day stories reflecting the Greek Olympic motto of Citius (swifter), Altius (higher), and Fortius (stronger). Official Olympic mascots date back to the 1972 Olympic Games in Munich with the Waldi the Dachshund, a popular Bavarian dog, as the first mascot.

New All-Girl From Misty Productions

Misty Productions has announced the release of their all-girl snowboard, surf, ski, and skateboard video for Fall 1999. The video features footage from Teton Gravity Research, Standard Films, and Billygoat Productions.

Gotcha Glacier Hires Tokyo Ski Dome Developer The Glacier of Anaheim, LLC, announced today that it has entered into a Memorandum of Understanding with Kajima Urban Development, a division of Kajima Corporation, to oversee the Gotcha Glacier project as Project Developer. As part of the deal, Kajima will guarantee the construction costs and on-time completion of the project. Turner Construction will be the builder. Kajima Corporation is the multi-billion-dollar construction firm that built the world famous 400-million dollar SSAWS Ski Dome in Tokyo, Japan. The Gotcha Glacier will break ground this summer and is expected to open in late 2000 or January 2001. The 100-million dollar, 430,000-square-foot Gotcha Glacier facility will house three-and-a-half acres of snow in a refrigerated environment complete with three separate snowboarding slopes and the world’s first indoor snowboard halfpipe sanctioned for international competition. Also included are the nation’s first indoor surfing facility, a 35,000-square-foot skatepark, and North America’s largest indoor rock climbing surface.

SIA Vegas Show Honored By Tradeshow Week 200 Show producer SnowSports Industries America learned today that the 1998 SIA Vegas show was named in the Tradeshow Week 200 for the 25th consecutive year while also being honored as a Tradeshow Week Silver Show, a special honor given to trade shows that have made the rankings each time they were held. Only 37 shows accomplished this feat. According to Tradeshow Week 200, the "Silver Shows" are the trade shows with the greatest staying power in the face of constant change. The Tradeshow Week 200 is a listing of the 200 largest trade shows by net square feet of paid exhibit space. It is the culmination of a year-long process of gathering and analyzing data on the size of the 4,500 trade shows held worldwide each year and, according to the Tradeshow Week 200, it provides a quantitative snapshot of the exposition industry's biggest and brightest stars at this point in time. The 1998 SIA Vegas show ranked 37th.

New Styles By Optic Nerve

Optic Nerve is introducing three new pieces to their line. First, is the new Optic Nerve Primo. This glass includes a prismatically corrected Focalpoint–a polycarbonate lens surrounded by an ultra-lean grilamid frame with wire-core temples. The frame is bathed in a velvety shark-skin finish. Also new for spring of 1999 is Optic Nerves exclusive Radium. Lenses are ten-base Focalpoint polycarbonate. A state of the art sulcated frame/lens integration has been incorporated to reduce frame obstruction and weight while at the same time providing adequate density for strength and flexibility. The third new style is called the Bitemark, which also includes Focalpoint.

Stimilon To Design Motocross Parks For Ski Resorts

Stimilon International, Inc. announced that it is expanding its business to include motocross park design for ski areas. They will include tracks, both competition and practice, freestyle pits, Enduro trails, and ATV tracks. The Stimilon staff rides every day in the off season and much of their snow-terrain design has been heavily influenced by Motocross over the years. Bringing those designs to dirt is an obvious progression and Stimilon feels the new venture will enhance the resorts’ portfolio. The Stimilon staffers have worked with ski areas for over seven years now, and their goal is to show areas how to tap into this new market and make money, while still maintaining the integrity and developing the growth of the sport. For more information, call (802) 879-8800 or email [email protected].

Five Resorts Capture Environmental Awards Golden Eagle Awards for environmental excellence in ski-area management have been won by five U.S. ski areas. These prestigious awards, established by The Skiing Company in 1993, are presented in recognition of the environmental achievements of ski areas in seven environmental categories: water conservation and waste-water management, energy conservation, visual impacts, fish and wildlife habitat protection, environmental group mediation, environmental education, and overall environmental excellence. Judging is by a panel made up of conservation experts, environmental agency representatives and members of the ski industry press. The winners were Massanutten, Virginia; Whistler/Blackcomb, British Columbia; Boston Mills/Brandywine Resort, Ohio; Aspen Skiing Company, Colorado; and Loon Mountain, New Hampshire.

Columbia Sportswear To Outfit NBC For Olympics

Columbia Sportswear announced that it has inked a deal with the NBC Olympic Unit to be an apparel supplier to the network’s Olympic broadcast team for the upcoming Olympic Games. Columbia will outfit NBC’s Olympic on-air talent, production crews, and VIP’s with special outerwear and sportswear for the 2000 Summer Games in Sydney, Australia, and the 2002 Winter Games in Salt Lake City, Utah. In addition, Columbia will develop and market through its U.S. retailer’s an Olympic licensed apparel collection.

In a special ceremony held at its headquarters, Columbia Sportswear received the 1998 Vendor Partner of the Year from Recreational Equipment, Inc. (REI). Columbia was also named REI’s top supplier in the Snow Sports and Outdoorwear categories, the first time in REI’s history that a vendor has won in more than one category. This is the second time Columbia has won an award from the company.

Financial News

Columbia Sportswear Announces Increases

Columbia Sportswear Company announced net sales of 89.2-million dollars for its first quarter ended March 31, 1999, an increase of 19.1 percent over the 74.9-million dollars of net sales for the same period of last year.

Net income for the period was 204,304 dollars, or $0.01 per share (diluted) on 19.6-million weighted average shares outstanding for the same period of last year.

The company attributes the increase in net sales for the quarter primarily to continued strength in its European and Canadian businesses, which reported sales growth for the first quarter of 104.2 percent and 58 percent, respectively, when compared to the first quarter of 1998.

Oakley Announces Record Net Sales For First Quarter Oakley announced financial results for its first quarter ended March 31, 1999. Net income for the first quarter totaled 1.4-million dollars, or $0.02 per diluted share, a 7.5-percent increase over 1.3-million dollars, or $0.02 per diluted share, earned in last year’s comparable period.

Net sales totaled 48.7-million dollars, a first-quarter record and an

increase of 18.8-percent over net sales of 41.0-million dollars for the

comparable prior year period.

An eleven-percent increase in sunglass unit sales and an eight-percent increase in the average selling price fueled the increase.

First quarter net sales in the United States increased 18.3-percent to 28.5-million dollars, compared with 24.1-million dollars for the same period last year. This increase resulted primarily from a 29.2-percent increase in sales to Sunglass Hut, the company’s largest customer. Sales to other U.S. customers increased 11.6-percent.

International net sales totaled 20.2-million dollars, a 19.6-percent increase over last year’s first quarter net sales of 16.9-million dollars, driven by substantial growth in all direct operations, particularly Europe, Canada, United Kingdom, and Japan.

Gurit Announces First-Quarter Results Gurit-Heberlein AG, a supplier of flexible rear windows for convertible cars, plastic surfaces for snowboards and skis, and foils for protective and sports glasses said first-quarter sales rose three percent on demand from automakers for its sealants and adhesives, and forecast higher 1999 profit. Gurit said sales rose to 174.7-million Swiss francs (117-million dollars) in the first quarter from 169.6-million a year earlier. Profit rose twenty percent last year to 36-million francs. Further profits growth is expected this year and Gurit still intends to spin off its ailing textiles unit, as it will be difficult to sell in Europe, the company said.

Bell Sports Announces Fiscal 1999 Third Quarter Results Bell Sports Corporation announced the results for its fiscal 1999 third quarter ended March 27, 1999. Net sales for the quarter increased four percent to 54.3-million dollars from 52.3-million dollars in the third quarter of fiscal 1998. The increase in sales is primarily attributable to strong U.S. mass-merchant bicycle helmet and bicycle-accessory sales. Gross margins for the quarter decreased to 32.1-percent of net sales from 34.8-percent of net sales in the prior year period.

Year-to-date net sales were 140.2-million dollars for the quarter compared to 138.6-million dollars in the first nine-month period of fiscal 1998. Year-to-date gross margins remained stable at 32.4-percent of net sales as compared to 32.5-percent of net sales in the prior year period.

Far West Reports Profitable First Quarter Far West Industries Inc. reported continued profitability in the first quarter despite difficult market conditions throughout most of North America. Sales decreased to 1,954,469 dollars, compared to 2,334,291 dollars for the same period last year. Net income for the first quarter was 20,547 dollars, compared to 59,001 dollars a year ago. Last year’s sales revenue included sales from shipments of a newly designed sportswear line, which did not occur this year until early in the second quarter.

The balance sheet showed improvement in the first quarter, with a decrease in the debt to equity ratio to .85 compared to 1.05 for the same period in 1998. Total working capital improved by 180,028 dollars during the quarter. Far West Industries Inc., designs, manufactures, and distributes quality sportswear, Concept snowboarding apparel, and Gore-Tex outerwear.

Intrawest Shows Strong Growth For Fifth Consecutive Year Intrawest Corporation announced third quarter results that show total company EBITDA rose 40 percent for a total of 155.3-million dollars for the nine months ended March 31, 1999. This compares with 110.6-million dollars for the same period last year. Intrawest’s EBITDA has increased every year for the past five years and grew at a compound rate of 57 percent during that period.

Income from continuing operations for the third quarter was 54.6-million dollars ($1.38 per share) compared with 42.6-million dollars ($1.24 per share) last year. Year-to-date income from continuing operations was 54.9-million dollars ($1.39 per share), up from 42.9-million dollars ($1.25 per share) last year. The per share results reflect an increase of fifteen percent in the average number of shares outstanding.

Revenue from ski and resort operations was 331.4-million dollars in the third quarter compared with 212.2-million dollars in the third quarter last year.

American Skiing Company Announces Third Quarter Results American Skiing Company announced financial results for the three months and nine months ended April 25, 1999. Net income available to common shareholders was 21.2-million dollars, or $0.69 per diluted share, for the third quarter of fiscal 1999, compared with 31.7-million dollars, or $1.03 per diluted share, for the third quarter of fiscal 1998. Total revenues for the third quarter of fiscal 1999 were 164.6-million dollars, compared with 185.2-million dollars for the corresponding period in fiscal 1998. Resort revenue increased 7.0-percent for the third quarter of fiscal 1999 to 154.3-million dollars, compared with 144.3-million dollars for the corresponding period in fiscal 1998. Total earnings from operations before interest, income taxes, depreciation and amortization (EBITDA) were 67.0-million dollars for the third quarter of fiscal 1999 compared with EBITDA of 79.2 -million dollars for the third quarter of fiscal 1998.

Resort EBITDA for the third quarter of fiscal 1999 was 65.2-million dollars versus 66.7-million dollars for the third quarter of fiscal 1998, and real estate EBITDA was 1.8-million dollars for the third quarter of fiscal 1999 versus 12.5 million-dollars for the corresponding period in fiscal 1998. For the nine-month period ended April 25, 1999, the net loss available to common shareholders was 9.8-million dollars, or a loss of $0.32 per diluted share compared with pro forma net income of 13.6-million dollars, or $0.45 per diluted share for the corresponding period of fiscal 1998, excluding a one-time stock compensation charge, net of income tax benefit, and extraordinary items. Total revenues for the nine months ended April 25, 1999 were 298.9-million dollars versus total revenue of 317.4-million dollars on a pro forma basis for the corresponding period in fiscal 1998. Total skier visits through May 23, 1999 were 5,084,487 visits versus 5,319,320 visits for the previous year.

Vail Announces Third Quarter Results Vail Resorts, Inc. announced financial results for the third quarter and nine months ended April 30, 1999. Resort Revenue (which excludes revenue from real estate operations) for the third quarter increased 11-percent to 188.2-million dollars from 170.1-million dollars in the comparable period last year. Total revenue for the quarter (which includes revenue from real estate operations) grew 16-percent to 202.2-million dollars from 174-million dollars in the same quarter in fiscal 1998.

Earnings from resort operations before interest, income taxes, depreciation and amortization (Resort EBITDA) for the third quarter were 75.4-million dollars versus 86.1-million dollars in the same quarter last year. As previously reported, the decline in Resort EBITDA reflects the overall weakness in the Colorado ski industry due largely to unfavorable weather conditions during the 1998-1999 ski season.

Net Income for the quarter was 30.2-million dollars, or $0.87 per diluted share, compared to 41.7 million-dollars, or $1.20 per diluted share, in the third quarter last year.

For the nine months ended April 30, 1999, Resort revenue increased 17-percent to 379.3-million dollars compared to 324.2-million dollars in the same period last year. Total Revenue grew to 410.8-million dollars from 390.0-million dollars in the first nine months of fiscal 1998. Resort EBITDA for the nine month period was 100.9-million dollars compared to 119.3-million dollars in 1998.

Net income for the nine month period was 26.3-million dollars, or $0.76 per diluted share, compared to 46.9-million dollars, or $1.35 per diluted share, in the same period in fiscal 1998.

In the third quarter of fiscal 1999, revenue per skier day grew 14% to $75.38 from $66.30 in the comparable quarter last year, despite a 3-percent decline in skier days. Total skier days for the third quarter were 2.5-million compared to 2.6-million last year. The Company also announced that on a preliminary basis, skier days for the 1998-1999 total ski season for all four resorts combined are expected to be 4,588,607, a 3-percent decline from the 4,716,605 skier days reported in the 1997-1998 ski season.