Conference Call - 5:30 p.m. EDT, Monday, July 12, 2004 - A simultaneous web cast for interested investors can be heard at Oakley's corporate web site: http://investor.oakley.com and will remain available through July 12, 2005. A telephonic replay of the call will be available from 8:00 p.m. EDT, Monday, July 12, through midnight July 19, 2004, and can be accessed from the United States and Canada at 800-642-1687, and from international locations at 706-645-9291; pass code: 8576286.
FOOTHILL RANCH, Calif., July 12, 2004 (PRIMEZONE) -- Oakley, Inc. (NYSE:OO) today announced the introduction of Thump(tm), the world's first performance eyewear combining patented optics with an internally integrated MP3 music player. Oakley will launch Thump(tm) in December for the 2004 holiday season under an exclusive distribution arrangement with Circuit City Stores, Inc. for the consumer electronics channel. Thump(r) will also be offered by Oakley's own O Stores(r), online at Oakley.com and through limited specialty retailers.
"Oakley believes that Circuit City is the ideal retailing partner for this product launch during the 2004 holiday season," said Oakley's chief operating officer Link Newcomb. "We have the utmost confidence in their highly-trained sales specialists to demonstrate the unique features and unsurpassed benefits of Thump(tm) to customers." "Oakley remains on the cutting edge of product development and Thump(tm) solidifies that position," said W. Alan McCollough, chairman, president and chief executive officer of Circuit City Stores, Inc. "We look forward to being the primary holiday retail distribution partner for Oakley's venture into electronics and offering one of the coolest holiday gifts to our customers."
"Thump(tm) reinvents the experience of on-the-go music," said Jim Jannard, chairman and CEO of Oakley. "The audio circuitry is built inside the eyewear frame, which means there's nothing dangling from your body and there are no wires to get in the way."
Oakley's digital music player mounts the speakers to the eyewear frame with miniature extendible booms, enhanced with pivots. They allow the wearer to adjust speaker position for optimal ear placement and to reposition the speakers away from the ears whenever necessary. By pivoting the speakers, the wearer can control the balance between environmental sound and digital music. "When you want to carry on a conversation, you simply flip up the speakers," continued Jannard. "We even designed the lenses with a pivot mount, so you can flip them up for low-light conditions."
Oakley engineered premium analog and digital sound processing to match its new world-class design innovation. The integrated circuitry features a high performance 18-bit Sigma Delta DAC for high fidelity acoustics including a signal-to-noise ratio of greater than 90dB. An on-chip 75MHz Digital Signal Processor is optimized for extended battery life and tailored to decode high quality audio algorithms. Custom-engineered Mylar(r) speakers offer a wide range of frequency response, up to the 20kHz limit of normal human hearing. Anti-pop and short-circuit protection are included. Volume, song selection and power are controlled via a convenient and intuitive five-button interface located on the earstem.
The new device plays MP3, WMA (DRM - both enabled and disabled) and WAV file formats. Its 128MB or 256MB NAND flash memory minimizes power expenditure. File transfer is completed with a simple "drag & drop" in Microsoft Windows(r) and Apple OS X operating systems via a high-speed USB 2.0 connection that is backward compatible with USB 1.1. Although available storage capacity varies, the device also can store non-song file formats of virtually any kind, making it a convenient means of backing up important files and transferring files between computers.
Powered by an internal lithium ion polymer battery, a full charge is completed in just three hours, and an 80 percent fast charge requires only one hour. Depending on volume level, file compression mode, external temperature and other factors, the internal battery offers approximately six hours of play time between charges. For added convenience, Oakley included both an audible and visual charge indicator (via LED).
The electronics are fully integrated within a lightweight O Matter(r) frame. The flip-up lenses are raked-back with 8.75 base lens curvature, maximizing peripheral view and improving protection against sun, wind and side impact. Oakley's patented XYZ Optics(r) maintains precise clarity at all angles of vision, even at the lens periphery.
Thump(tm) will be available in Circuit City stores nationwide for the December holiday season via Oakley's exclusive consumer electronics distribution arrangement and will also be offered by Oakley's own O Stores(r), online at Oakley.com and through limited specialty retailers. Distribution is expected to expand further in 2005, including a global introduction through Oakley's international offices.
The suggested retail price of Thump(tm) is US$395.00 with 128MB of memory and US$495.00 with 256MB of memory and polarized lenses.
About Oakley, Inc.
Oakley: a world brand, driven to ignite the imagination through the fusion of art and science. Building on its legacy of innovative, market-leading premium sunglasses, the company also offers an expanding line of premium performance footwear, apparel, accessories, watches and prescription eyewear to consumers in more than 100 countries. Trailing-12-month revenues through March 31, 2004 totaled $537.5 million and generated net income of $39.2 million. Oakley, Inc. press releases, SEC filings and the company's Annual Report are available at no charge through the company's Web site at www.oakley.com.
About Circuit City, Inc.
Richmond, Virginia-based Circuit City Stores, Inc. (NYSE: CC) is a leading specialty retailer of consumer electronics, personal computers and entertainment software. Circuit City puts the customer first, combining product specialists who complete extensive online and in-store training programs, with a broad product offering, including more than 5,000 top-quality consumer electronics products. Circuit City operates 604 Superstores and five mall-based stores in the United States.
Safe Harbor Disclaimer
This press release contains certain statements of a forward-looking nature. Such statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to growth and strategies, future operating and financial results, financial expectations and current business indicators are based upon current information and expectations and are subject to change based on factors beyond the control of the company. Forward-looking statements typically are identified by the use of terms such as "may," "will," "should," "might," "believe," "expect," "anticipate," "estimate" and similar words, although some forward-looking statements are expressed differently. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including: risks related to the company's ability to manage rapid growth; risks related to the limited visibility of future sunglass sales associated with the company's "at once" fulfillment business model; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners, including the development and production of the Thump(tm); the ability of those manufacturing partners and the company's internal production operations to increase production volumes on raw materials and finished goods in a timely fashion in response to increasing demand and enable the company to achieve timely delivery of finished goods to its retail customers; the ability to provide adequate fixturing to existing and future retail customers to meet anticipated needs and schedules; the dependence on eyewear sales to Sunglass Hut which is owned by a major competitor and, accordingly, could materially alter or terminate its relationship with the company; the company's ability to expand distribution channels and its own retail operations in a timely manner; unanticipated changes in general market conditions or other factors, which may result in cancellations of advance orders or a reduction in the rate of reorders placed by retailers; continued weakness of economic conditions could continue to reduce or further reduce demand for products sold by the company and could adversely affect profitability, especially of the company's retail operations; further terrorist acts, or the threat thereof, could continue to adversely affect consumer confidence and spending, could interrupt production and distribution of product and raw materials and could, as a result, adversely affect the company's operations and financial performance; the ability of the company to integrate acquisitions without adversely affecting operations; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; the acceptance in the marketplace of the company's new products and changes in consumer preferences; reductions in sales of products, either as the result of economic or other conditions or reduced consumer acceptance of a product, could result in a buildup of inventory; the ability to source raw materials and finished products at favorable prices to the company; the potential effect of periodic power crises on the company's operations including temporary blackouts at the company's facilities; foreign currency exchange rate fluctuations; earthquakes or other natural disasters concentrated in Southern California where substantially all of the companies operations are based; the company's ability to identify and execute successfully cost control initiatives; and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended December 31, 2003 and other filings made periodically by the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to update this forward-looking information. Nonetheless, the Company reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.