Oakley Announces Release Of Spike¿ Eyewear

Form Meets Function in the Technologies of a New Fashion Original

FOOTHILL RANCH, Calif., December 2, 2005 ¿ Oakley, Inc. (NYSE: OO) today announced the release of its latest eyewear design called SPIKE¿, an invention that blends the fashion of an Oakley original with the company’s well-known optical, performance features and 30-year legacy of eyewear innovation.  SPIKE¿ features Oakley’s High Definition Optics® (HDO®) for unsurpassed optical clarity.

SPIKE¿ is another example of how form and function can be fulfilled in the same style, specifically fashion with performance technology,” said Colin Baden, president, Oakley, Inc.  “The design is so unique, it stands on its own as a pure style piece, yet you shouldn’t have to sacrifice performance just to look good, which is why we developed SPIKE¿ with HDO® at its core for unbeatable clarity and protection.”

The lens contouring of SPIKE¿ required geometry not found in conventional eye­wear.  Both lenses are cut from a single piece of premium lens material ¿ a curved surface, like a sports shield ¿ then fitted into the frame to retain the original contour and alignment.  This gives SPIKE¿ unique aesthetics that also serve to extend peripheral vision and improve side protection, benefits that are overlooked in conventional eyewear.

For the optical performance of HDO®, SPIKE¿ takes advantage of Oakley patented XYZ Optics® technology.  This innovation maintains razor-sharp clarity at all angles of vision, even at the sides of lens contours for optimal peripheral protection against sun, wind and impact.   As with all Oakley eyewear, SPIKE¿ utilizes pure Plutonite® lenses to create a barrier of protection that meets ANSI Z80.3 standards for impact protection and filters out 100% of UVA, UVB, UVC and harmful blue light up to 400nm.

To offer all-day comfort, Oakley utilized its durable C-5¿ alloy to create the lightweight SPIKE¿ frame.  Comfort is further optimized with Unobtainium®, a supple material that increases grip with perspiration.  The linear ear stems hold the lenses in precise optical align­ment while offering the comfort of Oakley’s renowned Three-Point Fit.  Design accents include true metal icons.

Oakley’s new SPIKE¿ eyewear is available with several options.  The company’s Iridium® lens coating reduces glare while tuning the transmission of light to optimize performance.  Lenses with gradient shading (varied darkness from top to bottom) are available.  Customers can also purchase SPIKE¿ with Oakley polarization.  Oakley polarized lenses are created with a liquid infusion process to elimi­nate the distortion and haze found in conventional polarized lenses.  For those who require corrective lenses, SPIKE¿ is a prescription-ready design.

Frame Color

Lens

Model #

MSRP

Matte Black

Grey

-931

$135

Black Chrome

Brown Gradient

05-930

$145

Chrome

VR28® Black Iridium®

05-933

$145

Light

Titanium Iridium®

05-932

$155

Polished Black

VR28® Black Iridium® Polarized

12-868

$195

Pewter

Black Iridium® Polarized

12-869

$195

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 offers a full array of products including performance and lifestyle apparel, accessories, prescription eyewear, footwear, wristwatches and electronics to consumers in more than 100 countries.  Trailing-12-month net sales through September 30, 2005 totaled $638.7 million and generated net income of $52.6 million.  Oakley, Inc.  press releases, SEC filings and the company’s annual report are available at www.oakley.com.

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,” “plan,” “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 but not limited to: the acceptance in the marketplace of the com­pany’s new product introductions; the company’s ability to maintain approved vendor status and continue to receive product orders from the U.S.  military; the company’s ability to integrate and operate acquisitions, the company’s ability to manage rapid growth; risks related to the limited visibility of future sunglass orders associated with the company’s “at once” production and fulfillment business model; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; 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 Luxottica Group S.p.A, which, as a major competitor, could materially alter or termi­nate its relationship with the company; the company’s ability to expand and grow its distribution channels and its own retail operations; 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; a weakening of economic conditions could continue to reduce demand for products sold by the company and could adversely affect profitability, especially of the company’s retail operations; terrorist acts, or the threat thereof, could 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 licensing arrangements without adversely affecting operations and the success of such initiatives; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; 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 impact 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 a significant portion of the company’s 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, 2004 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 creh 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 but not limited to: the acceptance in the marketplace of the com­pany’s new product introductions; the company’s ability to maintain approved vendor status and continue to receive product orders from the U.S.  military; the company’s ability to integrate and operate acquisitions, the company’s ability to manage rapid growth; risks related to the limited visibility of future sunglass orders associated with the company’s “at once” production and fulfillment business model; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; 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 Luxottica Group S.p.A, which, as a major competitor, could materially alter or termi­nate its relationship with the company; the company’s ability to expand and grow its distribution channels and its own retail operations; 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; a weakening of economic conditions could continue to reduce demand for products sold by the company and could adversely affect profitability, especially of the company’s retail operations; terrorist acts, or the threat thereof, could 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 licensing arrangements without adversely affecting operations and the success of such initiatives; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; 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 impact 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 a significant portion of the company’s 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, 2004 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.

create an obligation to provide any other updates.