By Press Release

December 21, 1999

HUNTINGTON BEACH, Calif.--Dec. 16, 1999--Robert B. McKnight Jr., chairman of the board and chief executive officer of Quiksilver Inc. (NYSE:ZQK), today announced operating results for the fourth quarter and 12 months ended Oct. 31, 1999.

Consolidated net sales for the fourth quarter of fiscal 1999 increased 19.2% to $124,499,000 as compared with fiscal 1998 fourth-quarter consolidated net sales of $104,407,000. Consolidated net income for the fourth quarter of fiscal 1999 increased 24.6% to $7,865,000, or $0.34 per share on a diluted basis, as compared with $6,314,000, or $0.29 per share on a diluted basis, for the fourth quarter of fiscal 1998.

Basic earnings per share was $0.35 for the current quarter, compared with $0.30 per share for the fourth quarter of fiscal 1998. Domestic net sales during the fourth quarter of fiscal 1999 increased 21.4% to $85,714,000 as compared with fiscal 1998 fourth-quarter domestic net sales of $70,615,000. European net sales during the fourth quarter of fiscal 1999 as measured in French Francs increased 23.8% compared with the fiscal 1998 fourth quarter.

As a result of a weaker French Franc vs. the U.S. dollar in the fourth quarter of fiscal 1999 compared with fiscal 1998, European net sales during the fourth quarter of fiscal 1999 increased 14.8% to $38,785,000 as compared with fiscal 1998 fourth-quarter European net sales of $33,792,000.

Consolidated net sales for the 12 months ended Oct. 31, 1999, increased 40.4% to $443,734,000 as compared with the 12 months ended Oct. 31, 1998, consolidated net sales of $316,115,000. Consolidated net income for the 12 months ended Oct. 31, 1999, increased 48.0% to $26,584,000, or $1.14 per share on a diluted basis, as compared with $17,963,000, or $0.82 per share on a diluted basis, for the 12 months ended Oct. 31, 1998.

Basic earnings per share was $1.20 per share for the fiscal year compared with $0.85 for fiscal 1998. Domestic net sales during the 12 months ended Oct. 31, 1999, increased 43.2% to $290,363,000, as compared with 12 months ended Oct. 31, 1998, domestic net sales of $202,807,000.

European net sales during the 12 months ended Oct. 31, 1999, as measured in French Francs increased 37.6% compared with the 12 months ended Oct. 31, 1998. European net sales during the 12 months ended Oct. 31, 1999, in U.S. dollar terms increased 35.4% to $153,371,000 as compared with 12 months ended Oct. 31, 1998, European net sales of $113,308,000.

Consolidated inventories increased 2.3% to $72,207,000 at Oct. 31, 1999, from $70,575,000 at Oct. 31, 1998. Inventories increased somewhat from 1998 levels primarily to support increased sales for the holiday and spring seasons of the current year. Inventory turnover improved both domestically and in Europe.

Consolidated trade accounts receivable increased 37.3% to $107,619,000 at Oct. 31, 1999, from $78,390,000 at Oct. 31, 1998, which is consistent with the growth in net sales in the latter portion of the fourth quarter.

McKnight said: "Fiscal 1999 was a banner year for Quiksilver. I'm very pleased with 40% sales and 48% earnings growth and the well-rounded nature of our growth. It came both domestically and in Europe and across all of our men's and women's divisions. I'm particularly proud of the great performance and hard work of our people in 1999, especially considering we moved both our domestic and European headquarters this year.

"During the year, the company opened 25 Boardriders Clubs, including our store on the Champs Elysees, and we just opened our latest flagship locations in Boston and London in the past two weeks.

McKnight continued: "I'm very proud of the development and growth in our two, strong Generation Y brands, Quiksilver and Roxy. The opportunities before us are excellent, and the company's in great shape to take advantage of those opportunities going into the new millennium."

Quiksilver Inc. designs, produces and distributes clothing, accessories and related products for active-minded people and develops brands that represent a casual lifestyle -- driven from a boardriding heritage. Quiksilver's authenticity is evident in its innovative products, events and retail environments across the globe.

Quiksilver's primary focus is apparel for young men and young women under the Quiksilver, Quiksilver Roxy, Raisins and Radio Fiji labels. Quiksilver also manufactures apparel for boys (Quiksilver Boys), girls (Teenie Wahini and Raisins Girls), men (QS Silver Edition) and women (Leilani), as well as snowboards, snowboard boots and bindings under the Lib Technologies, Gnu and Bent Metal labels.

Distribution is primarily in the United States and Europe and is based in surf shops and specialty stores that endeavor to provide an outstanding retail experience for their customers.

QUIKSILVER INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended

Oct-31-99 Oct-31-98

Net sales $ 124,499,000 $ 104,407,000 Cost of goods sold 75,676,000 61,502,000

Gross profit 48,823,000 42,905,000 Operating expenses: Selling, general and

administrative expense 34,804,000 30,817,000

Royalty income (615,000) (378,000) Royalty expense 1,432,000 1,132,000 Total operating expenses 35,621,000 31,571,000 Operating income 13,202,000 11,334,000 Interest expense 801,000 799,000 Foreign currency gain (734,000) (631,000) Other expense 194,000 102,000 Income before provision for income taxes 12,941,000 11,064,000 Provision for income taxes 5,076,000 4,750,000 Net income $ 7,865,000 $ 6,314,000 Net income per share (a) $ 0.35 $ 0.30 Net income per share, assuming dilution (a) $ 0.34 $ 0.29 Weighted average common shares outstanding (a) 22,317,000 21,351,000 Weighted average common shares outstanding, assuming dilution (a) 23,286,000 22,080,000

Twelve Months Ended

Oct-31-99 Oct-31-98

Net sales $ 443,734,000 $ 316,115,000 Cost of goods sold 268,184,000 189,399,000

Gross profit 175,550,000 126,716,000 Operating expenses: Selling, general and

administrative expense 124,479,000 91,508,000

Royalty income (2,123,000) (1,514,000) Royalty expense 5,266,000 3,851,000 Total operating expenses 127,622,000 93,845,000 Operating income 47,928,000 32,871,000 Interest expense 3,476,000 2,734,000 Foreign currency gain (960,000) (946,000) Other expense 545,000 315,000 Income before provision for income taxes 44,867,000 30,768,000 Provision for income taxes 18,283,000 12,805,000 Net income $ 26,584,000 $ 17,963,000 Net income per share (a) $ 1.20 $ 0.85 Net income per share, assuming dilution (a) $ 1.14 $ 0.82 Weighted average common shares outstanding (a) 22,096,000 21,144,000 Weighted average common shares outstanding, assuming dilution (a) 23,284,000 21,820,000

(a) Per share amounts and shares outstanding have been adjusted to

reflect a three-for-two stock split effected on April 23, 1999.