Birkenstock USA Celebrates Becoming 100 Percent Employee Owned.

Business Editors

NOVATO, Calif.--(BUSINESS WIRE)--Oct. 29, 2002

Birkenstock Footprint Sandals Inc., the importer and distributor of Birkenstock footwear from Germany, today announced that the company is now 100 percent owned by its employees. In a celebration earlier this week, Birkenstock USA's founder, Margot Fraser, passed on the remaining shares of the business she founded more than 35 years ago, along with her vision and legacy, to her successors.

"Birkenstock has always been a special company that focuses on its employees," said Fraser. "I wanted to make sure the future of the business was modeled after the past, keeping our core values and operating mantra intact, and I know it will be in good hands. I am thankful for all the hard work and effort every employee has put into this business, in the past, and moving forward into the future."

In 1993, Fraser began thinking about a succession plan for her company, as well as an investment opportunity for employees, and decided on an employee stock ownership plan (ESOP). To ensure that the company's history and values would remain the same in the future, she sought out a program that would empower her employees as company owners. With the help of a Board of Trustees made up of Birkenstock staff, Fraser ultimately enabled ESOP, and employees acquired ten percent of the business. Four years later, the staff purchased another 30 percent and in March 2002, the Board of Trustees began negotiations to have employees acquire the entire business from Fraser.

"This announcement is a testament to Margot and the company's accomplishments," said Matt Endriss, Birkenstock president. "All employee owners at Birkenstock will know that their contribution and successes in the workplace will ultimately benefit our business."

Birkenstock has already benefited from this employee-owned program, and continues to grow year after year. This fiscal year, 2002, Birkenstock has had one of its strongest years since its inception.

About Birkenstock

Birkenstock Footprint Sandals, Inc., based in Novato, CA, is the original U.S. importer and distributor of Birkenstock footwear made in Germany. Birkenstock represents a mindset of free spirit and individual expression that starts from the ground up. We believe that comfortable footwear leads to happiness and well-being, which is why our products are designed around the concept that the shape of the shoe should follow the shape of the foot. Birkenstock has more than 400 styles, colors, and textures of sandals, clogs and shoes, and a line of insoles and arch supports, all designed around our original footbed concept. People who wear our product appreciate high quality, comfortable footwear, and have their own distinctive style. To locate a nearby retailer, or to receive a current catalog, call 1-800-761-1404, or visit the Birkenstock web site at www.birkenstock.com.