Brass Eagle Inc. Acquires Assets of CM Support, Inc.

ROGERS, AR--(BUSINESS WIRE)--Jan. 6, 1999--Brass Eagle Inc. (Nasdaq: XTRM) the worldwide leader in the manufacturing, marketing and distribution of paintball products today announced the acquisition of all assets of CM Support, Inc. of Dallas, Texas for $5 million in cash.

CM Support, Inc. is the leading manufacturer and marketer of feeder loaders, tubes and accessories used in the paintball industry sold under the highly recognized ViewLoader(TM) trademark. The CM Support, Inc. product line, regarded as first quality in the industry, includes the VL 200 standard loaders, the VL 104 Attitubes, the VL Revolution electronic agitator loaders, the VL squeegees, the VL hopper elbows and the VL barrel plugs.

Lynn Scott, Brass Eagle President and CEO stated, "We are very excited about acquiring one of the leading product lines in paintball today. CM Support has previously been a primary supplier to Brass Eagle of select products, and the company's overall line has historically been sold direct or through distributors to the traditional paintball industry. Our plans are to maintain the current customer base while using Brass Eagle's retail distribution network to greatly expand the availability and accessibility to the broader ViewLoader(TM) product line."

According to the company, the acquisition will result in increased market share, improved margins, expanded retail product offerings and further penetration into the traditional paintball market. The acquisition will be accretive to income in 1999.

Mr. Scott concluded, "We continue to look for underdeveloped brands and products with the highest reputations for quality and innovative designs to strengthen our product offering. We remain excited about the prospects of our business and the continued growth in the popularity of paintball which appeals to a wide demographic, in particular, the youth market which represents 66 million individuals and $500 billion in spending power."

Brass Eagle is unique in providing a full line of paintball guns and accessory products from beginner through competition level. The Company is the dominant supplier of products for this rapidly growing sport. Brass Eagle has been named one of the "Top 100" Hot Growth Companies by Business Week magazine and one of the IW Growing Companies 25, America's Most Successful Small Manufacturers by Industry Week magazine.