AIRWALK signs major apparel licensing contract with ITOCHU Corp.; announcement covering Japanese market signals aggressive movement by both companies.

ALTOONA, Penn.--(BUSINESS WIRE)--Feb. 25, 1997--AIRWALK, one of the fastest growing and most accepted youth brands in the United States, will soon be broadening its appeal as it jointly announces the signing of a contract with ITOCHU Corp., Osaka, Japan, for casual apparel and accessories licensing in that country.

ITOCHU, a fully integrated apparel manufacturing and sales organization that ranks among the world's largest companies in the category, and Items International Inc., the Altoona-based owner of the AIRWALK brand, made the announcement at a press conference in Osaka. George Yohn, chief executive officer, and Lee Smith, president of the AIRWALK Division, represented AIRWALK at the gathering.

Sales of AIRWALK-branded items will begin in Japan for the Fall and Winter 1997 seasons. The company has not yet determined which items will be marketed, but the agreement provides ITOCHU with access to all casual apparel and accessories, excluding those associated with the sport of snowboarding.

AIRWALK has enjoyed a phenomenal growth record since it was established in 1986, with worldwide sales, led by its lifestyle-oriented footwear line, climbing past the $250 million mark in 1996.

The brand, which has blazed new trails in the footwear industry by taking an often times "edgy" position in its promotional activities, was rated as the 13th "coolest" brand among all brands (including shoes, cars, beverages, video games, etc.) by teens, its primary consumer target, according to Teenage Research Unlimited.

AIRWALK will be honored as Footwear Marketer of the Year this April at an industry function sponsored by Footwear Industries of America, Footwear Distributors and Retailers of America, and Footwear News.

"This arrangement with ITOCHU Corporation will provide the brand with the impetus needed to make AIRWALK as strong in Japan as it is elsewhere," said Smith. "The expertise of an organization like ITOCHU brings strengths in design, development, sourcing, marketing and sales that can't be equalled anywhere else."

Smith sees the AIRWALK brand as offering the perfect synergies with current trends of Japanese youth.

"American lifestyles have always interested the youth of Japan, and AIRWALK's unique view, which has been positioned so well in the U.S. through action sports and other lifestyle-oriented activities, will translate very well in that market."

All parties agree that the potential growth of the brand is closely related to the image that is projected on a worldwide basis.

According to Smith, "AIRWALK has spent huge sums to reach, and hold, the imagination of today's youth, and this arrangement with ITOCHU validates much of what we've always understood was a global movement with global impact."

CONTACT: Freeman/McCue

Doug Freeman, 714/557-3663