Brass Eagle Inc. Completes JT USA Acquisition.

Business Editors

BENTONVILLE, Ark.--(BUSINESS WIRE)--July 3, 2000

Brass Eagle Inc. (Nasdaq:XTRM) the worldwide leader in the manufacturing, marketing and distribution of paintball products announced that it completed the acquisition of JT USA, LP of Chula Vista, California. The terms of the deal were not disclosed.

JT USA is a leading manufacturer of protective accessories and apparel for the paintball industry. The JT USA product line, regarded as the benchmark in the industry, includes masks, goggles, active and casual apparel and protective gear primarily distributed through traditional paintball fields.

As previously disclosed, JT USA will continue to manufacture its core line of products under the JT label as well as produce masks and accessory products for Brass Eagle. JT USA will retain its headquarters and manufacturing facility in California and operate as a division of Brass Eagle.

Lynn Scott, Brass Eagle President and CEO stated, "We are pleased to complete the JT acquisition and firmly believe this represents not only an excellent addition to our portfolio of products and brands, but also an important source of future sales and profits. We anticipate that the acquisition will result in increased market share, considerable margin expansion, increased retail product offerings and further penetration in the traditional market. Furthermore, JT represents the ideal platform to expand our business outside paintball to the broader extreme sports market."

Brass Eagle also announced that the Company signed a new Senior Credit Facility for $40 million with Bank of America. The agreement would allow the Company to use the credit facility for general operations and business expansion.

Mr. Scott concluded, "Our core business remains solid. Furthermore, we have made a number of strategic acquisitions over the past year, including CM Support, Challenge Park Xtreme and now JT, which further establishes Brass Eagle as the dominant player in the industry and better positions the Company for the future. With our growth plans in place and the liquidity to execute our strategic plans, we look forward to profitably capitalizing on the opportunities that lie ahead."

Further details will be available in the Company's 8-K filing. Additionally, the Company reported that it continues to explore strategic and financial opportunities to enhance shareholder value. As mentioned before, Brass Eagle has retained McDonald Investments Inc. to advise it in its development and consideration of alternatives, which could include, but are not necessarily limited to, the sale of the Company, as well as a corporate stock repurchase program and strategic acquisitions.

Brass Eagle is unique in providing a full line of paintball markers 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.

Various statements made about future expectations, plans and prospects for the Company and for the acquisition of JT's assets constitute forward-looking statements for purposes of the safe harbor provisions under the private securities litigation reform act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Company's annual report on form 10-K which is on file with the SEC. The note regarding forward-looking statements in the Company's 10-K will apply to any forward-looking statements made here today.