PR: Rusty Discontinues Snowboard, Wakeboard Production
Company refocuses on growing surf and apparel market.
Edited by John Stouffer
(8-18-98)

(Press Release, August 17, 1998)—Amid burgeoning worldwide demand for Rusty surfboards and steady growth in its apparel division, Rusty Founder and President Rusty Preisendorfer announced the company's decision to refocus on its core business and discontinue production of snowboards and wakeboards. Thus far in 1998, Rusty Surfboards-the world's largest manufacturer of surfboards- reported record production volume, while Irvine-based Rusty Apparel expanded men's and juniors apparel, launched the Rusty Girl swimwear line, and strengthened their market leadership in Lycra (rashguards).

Introduction of several innovations helped spur the company's unprecedented growth and return to its surf roots. Led by the popular C-5 model, Rusty's custom shaping business increased nearly twenty percent while overall production exceeded 10,000 units. Rusty Apparel debuted the Slider, and easy-in, easy-out board-short lacing system, the All-Terrain Pant (ATP) featuring detachable legs, allowing the option of a long pant or shorts, and the Rusty Solar Watch line-an environmentally friendly watches requiring no batteries or winding.

Although wakeboards and snowboards were both growth categories, the company trailed industry leaders Burton (snowboards) and Hyperlite (wakeboards). "In relatively new industries like snowboarding and wakeboarding, technologies are constantly advancing," says Preisendorfer. "It takes incredible resources to develop new, innovative product constantly. Burton and Hyperlite are the best at what they do. I'd rather focus my energy on what I'm best at . designing and manufacturing the best surfboards and most functional boarding apparel in the world. We [Rusty] want to be known as the Burton of surf."

Rusty will continue to ship and support 1998 snowboard and wakeboard lines. Additionally, the company will also continue to field a team of world-class athletes in wakeboarding, snowboarding, skateboarding, and surfing. "We're not leaving snowboard and wakeboard apparel," said Marketing Vice President Peter Townend. "The Rusty brand, through athletes, clothing, and advertising, will still support these industries."

With 70-million dollars in annual sales, the company is experiencing growth both domestically and internationally in key areas like Australia, Europe, and Brazil. Preisendorfer has embraced a "Global Youth" concept-a theme that will be reinforced across apparel and hardgoods lines. "There's been incredible demand from younger surfers across the globe for high-performance shortboards and [big- wave] guns," says Preisendorfer.

The company already sponsors a number of "Gromfest" contests each year in conjunction with key retailers across the U.S.

"Thousands of kids were introduced to competitive surfing in a low-anxiety environment," says Townend, who plans on expanding the concept in 1999. "The young athletes are the key to surfing's future and Rusty will do it all to support them."

The only major surf company founded on hardgoods, Rusty has gained a hold on the men's, boys, and juniors apparel markets by staying true to what Rusty is all about-remaining the leading innovator of apparel, equipment, and accessories for the active boarding participant. Rusty distributes its products to more than 1,100 surf and specialty retailers in the U.S.

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