Bolle Inc. Announces Record Second Quarter 1999 Results; the Company Posts a 35% Increase in Net Income; Worldwide Net Sales Up 22% Over Last Year.

DENVER--(BUSINESS WIRE)--July 28, 1999--

Bolle Inc. (Nasdaq: BEYE), today reported record financial results for the second quarter and six months ended June 30, 1999.

Net sales for the quarter ended June 30, 1999 increased 22% to $16.8 million compared to $13.7 million for the quarter ended June 30, 1998. Earnings before interest, taxes, depreciation and amortization for the second quarter of 1999 were $2.2 million, a 10% increase from $2.0 million for the second quarter of 1998. Net income attributable to common stock, after accounting for preferred dividends and minority interests, was $569,000 or $0.08 per basic and diluted share for the quarter ended June 30, 1999. For the same quarter last year, net income was $423,000 or $0.06 per basic and diluted share. The basic and diluted weighted average shares outstanding for the quarter ended June 30, 1999 were 6.9 million and 7.1 million respectively, versus the basic and diluted weighted average shares outstanding for the quarter ended June 30, 1998 of 6.7 million and 7.1 million shares.

For the six months ended June 30, 1999, net sales increased 28% to $31.4 million, compared to $24.5 million during the same period in fiscal 1998. On a comparable basis, sales for the six months period increased 21% over the same period last year. Earnings before interest, taxes, depreciation and amortization for the six months ending June 30, 1999 were $3.7 million, a 13% increase from $3.3 million for the same period in 1998. The Company reported net income of $638,000 or $0.09 per basic and diluted share in 1999, after accounting for preferred dividends, compared to a net income of $419,000 or $0.06 per basic and diluted share for the same period in 1998., a 52% increase. The basic and diluted weighted average shares outstanding for the six months ended June 30, 1999 were 6.9 million and 7.1 million respectively, compared to 6.6 million and 6.8 million for the six months ended June 30, 1998.

Gary Kiedaisch, Chief Executive Officer of Bolle Inc., commented, "We are very pleased with Bolle Inc.'s record performance for the quarter, especially as this highlights our second consecutive quarter of improved bottom line results. Of particular note, worldwide sales increased 22% over prior year, a result of the continued strong sell-through our products enjoy at the retail level. Also, we continue to focus on leveraging our overhead expenses allowing us to drive more sales dollars to the bottom line."

Mr. Kiedaisch noted, "We continue to move forward with our overall strategy of building Bolle brand awareness and as such, signed two new licensing agreements during the quarter. In addition, we agreed to leverage our technology and manufacturing expertise by entering into an exclusive agreement with Nike to manufacture a line of ski and snowboard goggles under the Nike label which will be launched in Fall 2000 by Nike. Furthermore, our product development for fiscal 2000 remains on track and we will launch our exciting new sunglass models and ski and snowboard goggles at the October 1999 Silmo International Optical trade show in Paris."

Mr. Kiedaisch concluded, "Looking ahead to the balance of fiscal 1999, we remain very encouraged about the overall level and tone of our business. Our financial results indicate that the infrastructure we have put in place is working, and we remain committed to identifying additional ways to leverage the strength of the Bolle name."

Bolle Inc. (Nasdaq: BEYE), is a vertically integrated designer, manufacturer and marketer of Bolle(r) branded eyewear, including Bolle(r) premium sunglasses, goggles, and tactical and safety eyewear. Bolle Inc. is also the exclusive North American distributor of the Reusch line of winter gloves for sports.

Forward looking statements (statements which are not historical) in this release are made pursuant to the safe harbor provisions in the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those expressed or indicated by forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to, changes in fashion trends, risks related to the retail industry, use of contract manufacturing, foreign sourcing, import restrictions, competition, seasonality and other factors. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

                              Bolle Inc.
                 Consolidated Statements of Operations
                 (In thousands, except per share data)
                              (Unaudited)


                              Three Months Ended      Six Months Ended
                                     June 30,             June 30,
                             -------------------   -------------------
                                 1999       1998       1999       1998
                             --------   --------   --------   --------

Net sales                    $ 16,752   $ 13,748   $ 31,416   $ 24,476

Costs and expenses:
  Cost of sales                 6,978      5,931     13,756     11,218
  Sales and marketing expenses  3,982      3,304      7,265      5,641
  General and administrative
   expenses                     3,916      2,937      7,723      5,273
  Depreciation and amortization   599        745      1,199      1,502
  Interest expense                360        311        811        794
  Other income                   (323)      (405)    (1,000)      (919)
                             --------   --------   --------   --------
Total costs and expenses       15,512     12,823     29,754     23,509
                             --------   --------   --------   --------

Income before income taxes
 and minority interests         1,240        925      1,662        967

Provision for income taxes        483        351        647        368
Minority interests                 (3)        10         (6)        10
                             --------   --------   --------   --------
Net income                        760        564      1,021        589
Preferred dividends               191        141        383        170
                             --------   --------   --------   --------
Net income attributable
 to common stock             $    569   $    423   $    638   $    419
                             ========   ========   ========   ========

Weighted average shares
 outstanding:
Basic                           6,895      6,746      6,895      6,583
Diluted                         7,127      7,116      7,123      6,813


Earnings per share:
Basic                        $   0.08   $   0.06   $   0.09   $   0.06
Diluted                      $   0.08   $   0.06   $   0.09   $   0.06


                              Bolle Inc.
                      Consolidated Balance Sheets
                 (In thousands, except per share data)

                                               June 30,   December 31,
                                                 1999        1998
                                              ---------   -----------
Assets                                       (Unaudited)

Current assets:
  Cash and cash equivalents                   $  2,017    $  1,194
  Trade receivables, net                        15,640      15,238
  Inventories                                   12,593      11,210
  Investment held for resale                       -         4,992
Other current assets                             3,696       3,676
                                              --------    --------
     Total current assets                       33,946      36,240

Property and equipment, net                      5,012       5,129
Trademarks, net                                 29,964      34,208
Goodwill and other intangibles, net              5,528       5,245
Other assets                                     1,385       1,424
                                              --------    --------
  Total assets                                $ 75,835    $ 82,246
                                              ========    ========

Liabilities and Stockholders' equity
  Current liabilities:
  Short-term debt and current portion
    of long-term debt                         $ 15,079    $ 18,955
  Accounts payable                               7,598       5,851
  Accrued expenses                               7,818       7,455
                                              --------    --------
     Total current liabilities                  30,495      32,261

Long-term debt, net of current portion           2,511       3,407
Zero coupon convertible subordinated notes       7,000       7,000
Deferred tax liabilities                        10,623      13,028
Other                                            3,170       3,063
                                              --------    --------
  Total liabilities                             53,799      58,759
                                              --------    --------

Minority interests                                 -            70
Mandatorily redeemable preferred stock-
  redemption value $11,055; par value
  $.01; 64 shares authorized, issues and
  outstanding                                   11,055      11,055
Mandatorily redeemable preferred stock-
  redemption value $9,625; par value $.01;
  10 shares authorized, issues and outstanding  10,048       9,669

Stockholders' equity:
Common stock - par value $.01; 30,000
  shares authorized; 6,895 and 6,893
  shares issued and outstanding                     69          69
Additional paid-in capital                      38,167      38,539
Accumulated other comprehensive income (loss)     (677)      1,731
Prior years' accumulated deficit               (37,646)    (37,646)
Current year retained earnings                   1,020         -
                                              --------    --------
  Total stockholders' equity                       933       2,693
                                              --------    --------
  Total liabilities, mandatorily
    redeemable preferred stock
    and stockholders' equity                  $ 75,835    $ 82,246
                                              ========    ========