Leading Snowshoe Companies Combine Forces

5/11/99

(Press Release -- May 10, 1999) The two largest snowshoe companies in the world -- Tubbs Snowshoe Company of Stowe, Vermont, and Atlas Snow-Shoe Company of San Francisco, California -- today agreed to merge.

The Tubbs Business will be owned and operated by Tubbs Snowshoe Company, L.L.C., and the Atlas business will be a subsidiary of Tubbs.

Ed Kiniry, who has been instrumental in driving the rapid growth in the sport of snowshoeing as the president and CEO of Tubbs Snowshoe Company, will lead the new holding company as well as retain his current title and responsibilities.

Dean Schorno, the current CEO of Atlas Snow-Shoe Company, will continue in his position. Atlas Founder Perry Klebahn will maintain his involvement in the company as a strategic market development advisor. Klebahn¹s initial partner, Jim Klingbeil, retired from the business in 1992.

Both companies will retain their respective headquarters and factories.

"This business combination will allow both of our operating units to dedicate resources to building the sport of snowshoeing," says Kiniry. "We¹ll continue to compete with one another, but the competition will be for a greater purpose: to grow the participation of snowshoeing from about a million and a half to ten million in the next few years."

The most significant change will be in joint marketing effort the two companies plan to implement for the 1999/2000 winter season. Neither Kiniry nor Schorno expected many changes in the way each business unit operates.

A cornerstone to the success of the new business is the financing package provided by Horizon Partners of Milwaukee and Allied Capital of Chicago.

"We saw enormous potential in the sport of snowshoeing and believed that with the proper funding and the most talented people in the business under one entity, we could help accelerate the sport¹s growth and make this new business successful," says Paul Stewart of Horizon Partners.

The two operating units will continue to compete head-to-head for the specialty outdoor and sporting goods market segments and concentrate more heavily on building new market opportunities independently such as women¹s, fitness, children¹s, and backcountry niches.

[Financial details were not released.]

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