By Press Release

December 21, 1999

SANTA FE SPRINGS, Calif.--(BUSINESS WIRE)--Dec. 16, 1999--Vans, Inc. (Nasdaq: VANS) today announced financial results for the second fiscal quarter and six months ended November 27, 1999.

Net sales for the quarter increased 26.9% to $57.8 million, compared to $45.6 million for the second quarter of fiscal 1999. Net income was $2.7 million, versus net income of $2.5 million in the same period last year, and diluted earnings per share was $0.19 versus diluted earnings per share of $0.19 in the second quarter of fiscal 1999. Net sales for the six months increased 26.0% to $140.0 million, compared to $111.1 million for the corresponding six months of fiscal 1999. Net income rose to $8.6 million, versus net income of $7.3 million in the same period last year, and diluted earnings per share increased to $0.60 versus diluted earnings per share of $0.53 in the first six months of fiscal 1999.

Gary H. Schoenfeld, Vans' President and Chief Executive Officer stated, "We are pleased to report our second quarter and first half of fiscal 2000 sales and earnings results, and as evidenced by our backlog for the third quarter which is up more than 30% both in the U.S. and internationally, we are entering the new millennium and the second half of our fiscal year on track for significant growth in sales and earnings." (see note below) "Highlights during the quarter included the formation of a strategic alliance with Sony Playstation (R), which includes a licensing and royalty agreement for upcoming video games coupled with their sponsorship of the VANS Triple Crown Series, the opening of the world's largest skate park in Ontario, California, and new agreements with Ford Ranger and Motorola as additional sponsors of the VANS Triple Crown Series," Mr. Schoenfeld said.

Total U.S. sales, including sales through Vans' U.S. retail stores, increased 19.5% in the second quarter to $40.6 million, versus $34.0 million for the same period a year ago. Total international sales, including sales through the Company's five European retail stores, increased 48.5% to $17.2 million, versus $11.6 million for the same period last year. Overall sales through the Company's 126-store retail chain (as of November 27, 1999) increased 38.3% to $18.1 million in the second quarter of fiscal 2000, from $13.1 million for the same period a year ago. Comparable store sales for the second quarter were up 15.0% versus the same period last year, the twentieth consecutive quarter of such increase. U.S. wholesale sales in the second quarter increased 9.5% to $23.3 million, versus $21.2 million a year ago.

The Company's gross margin for the second quarter was even with the prior year at 43.6%. Operating expenses and other items as a percentage of sales was 35.5% for the second quarter versus 34.0% for the same period a year ago. "A significant portion of the increase in expenses reflects the operation and infrastructure implemented in Europe over the past year," Mr. Schoenfeld said. "We are confident in our ability to leverage what we have established to date and are on track for significantly higher operating margins in the third quarter versus the prior year."(see note below) Worldwide inventory for the quarter increased by 27% versus last year primarily due to the significant growth internationally and the Company's transition from distributors to direct sales in key parts of Europe. Including an additional 20 retail stores, inventory in the U.S. remained relatively unchanged on a year-to-year basis.

Mr. Schoenfeld concluded, "Twelve months ago our strategic priorities were to advance the direction of our product, establish the infrastructure to drive our business in Europe and further build the VANS brand on a global basis through the VANS Triple Crown Series, VANS skateparks and other proprietary initiatives. Having successfully accomplished all three goals, we are well-positioned for growth as evidenced by our strong bookings, and are very encouraged about our sales and earnings potential for the second half of this year and as we look ahead to fiscal 2001."(see note below) Vans, Inc. is a leading branded lifestyle company for the youth market. Vans reaches its 10 to 24 year-old target consumers through the sponsorship of Core Sports,(TM) such as skateboarding, snowboarding, surfing and wakeboarding, and through major entertainment events and venues, such as the VANS Triple Crown(TM) Series, the VANS Warped Tour,(TM) the VANS World Amateur Skateboarding Championships, the world's largest VANS skateparks, and the Vans High Cascade Snowboard Camp,(TM) located on Mt. Hood. The Company operates 126 retail stores in the U.S. and Europe, and designs, markets and distributes active-casual footwear, clothing and accessories, performance footwear for Core Sports, (TM) snowboard boots, step-in snowboard boot bindings, and outerwear worldwide. Vans' Internet address is www.vans.com.

Note: This paragraph contains forward-looking statements about the Company's future sales, operating income and net income. Actual sales and earnings results for the Company may be impacted by a number of important factors, including but not limited to: (i) the occurrence of downward trends in the U.S. economy, foreign economies and the footwear industry, or the occurrence of events that adversely affect the world economy in general; (ii) changes in the fashion preferences of the Company's target customers and the Company's ability to anticipate and respond to such changes; (iii) increasing competition in all lines of the Company's business from both large, well-established companies with significant financial resources and brand recognition, and smaller niche competitors who market exclusively to the Company's target customers; (iv) the cancellation of orders which could alter bookings numbers; and (v) the fluctuation of foreign currencies in relation to the U.S. dollar. These factors, and others, are discussed more extensively in the Company's Annual Report on Form 10-K for the year ended May 31, 1999, which is filed with the Securities and Exchange Commission.

(Tables to Follow)

*T

Vans, Inc.

Condensed Consolidated Financial Summary

Second Quarter and Six Months Fiscal Year 2000

(Dollars in thousands, except per share amounts)

Statements of Operations

Three Months Ended Six Months Ended

Nov 27, Nov 28, Nov 27, Nov 28, 1999 1998 1999 1998

Net sales $ 57,823 $ 45,559 $ 139,974 $ 111,062 Cost of goods 32,600 25,680 80,187 63,079

Gross profit 25,223 19,879 59,787 47,983 Gross profit percentage 43.6% 43.6% 42.7% 43.2%

Expenses:

Selling and distribution 14,655 10,400 29,702 21,195 Marketing, advertising and promotion 3,668 3,717 11,202 10,912 General and administrative 2,421 1,783 5,412 4,660 Other expense

(income), net (a) (1,265) (820) (2,446) (1,564) Goodwill amortization 337 345 671 610 Interest expense net 706 75 1,096 152

20,522 15,500 45,637 35,965 Expenses and other items as a percentage of sales 35.5% 34.0% 32.6% 32.4%

Earnings before income taxes 4,701 4,379 14,150 12,018 Income tax expense 1,598 1,577 4,811 4,327 Minority interest 437 271 738 421

Net earnings $ 2,666 $ 2,531 $ 8,601 $ 7,270

Earnings per share information: Basic: Weighted average

Shares outstanding 13,538 13,313 13,512 13,308

Net earnings

per basic share $ 0.20 $ 0.19 $ 0.64 $ 0.55

Diluted: Weighted average

Shares outstanding 14,270 13,623 14,241 13,634

Net earnings

per diluted share $ 0.19 $ 0.19 $ 0.60 $ 0.53

Footnote:

(a) Other income consists primarily of licensing royalties and

sublease income.

Vans, Inc.

Condensed Consolidated Financial Summary

Second Quarter and Six Months Fiscal Year 2000

(In thousands of dollars)

Balance Sheets Nov 27, Nov 28, 1999 1998

ASSETS:

Current assets Cash $ 11,557 $ 9,398 Trade receivables 36,211 29,962 Inventory 49,384 38,987 Deferred income taxes 1,628 5,469 Other 8,877 5,852

Total current assets 107,657 89,668 Property, plant and equipment - net 27,358 19,455 Intangible assets 24,020 23,511 Other 2,830 2,977

Total assets $161,865 $135,611

LIABILITIES:

Short-term borrowings $ 24,439 $ 15,936 Current liabilities 15,251 15,040 Restructure costs 628 2,331 Other long-term liabilities 15,266 6,622

Total liabilities 55,584 39,929 Minority interest (a) 1,263 750 Shareholders' equity 105,018 94,932

Total liabilities and

shareholders' equity $161,865 $135,611

Sales by Distribution Channel

Three Months Ended Six Months Ended

Nov 27, Nov 28, Nov 27, Nov 28, 1999 1998 1999 1998

U.S.: Wholesale $ 23,268 $ 21,247 $ 58,394 $ 55,294

Retail 17,325 12,713 37,045 29,151

Total U.S. 40,593 33,960 95,439 84,445 Total International 17,230 11,599 44,535 26,617

Total Sales $ 57,823 $ 45,559 $139,974 $111,062

*T Footnote: (a) During the second quarter of fiscal 2000, the Company acquired an

additional 10% of the Common Stock of Global Accessories Ltd. in

exchange for Common Stock of the Company. This transaction was

effective as of September 30, 1999, bringing the Company's

ownership of Global to 80%. The remaining 20% of the Global

Shares is expected to be acquired over the next two years.