Brooks Completes Recapitalization Financing.

BOTHELL, Wash.--(BUSINESS WIRE)--Oct. 23, 1998--Brooks Sports Inc. announced today that it has received a substantial financial investment from J.H. Whitney & Co., a private equity firm based in New York City and Stamford, Conn., to complete a recapitalization in connection with an employee buyout of the performance footwear and apparel company.

"This investment and recapitalization will enable us to devote greater attention to product innovation, promote the Brooks brand more aggressively and continue the high level of customer service for which the company is well known," said Helen Rockey, president and chief executive officer of Brooks. Rockey added that "the current management team is very excited about the opportunity to become owners of Brooks in partnership with J.H. Whitney."

One of the most rapidly growing companies in the athletic footwear industry, Brooks has had a series of record sales years with 1998 U.S. revenues up 22 percent from 1997. Bookings for 1999 are running nearly 40 percent ahead of a year earlier reflecting the success of several recent product introductions in the core running and trail running segments. Rockey indicated that Brooks intends to build on this recent success with continued focus in five primary areas: core running, performance cross training, trail running, exercise walking and apparel. "We have had excellent success with our recent footwear and apparel products and believe that there is an excellent opportunity to grow the business in our five primary areas of focus," noted Rockey.

Founded in 1946 by John Hay Whitney, J.H. Whitney was one of the first venture capital firms in the United States. Over the firm's fifty year history, J.H. Whitney has invested in more than 500 private companies, many of which have become very successful public companies. The firm invests in four industry sectors: consumer branded products, telecommunications and the internet, healthcare products and services and slow growth industries in the state of rapid change and transformation. Among the firm's recent consumer investments are The North Face, a manufacturer of performance outerwear and apparel; Ariat International, a designer and distributor of equestrian footwear; and Briazz, a Seattle-based convenience food chain. "Brooks is an attractive investment opportunity because of the Company's strong brand identity, sales performance and customer service. We seek to identify and invest with strong management teams whom we believe are capable of managing high growth opportunities. We believe that the management team at Brooks is well prepared for the challenges of the future," said Mike Brooks, senior partner of J.H. Whitney.

Earlier this year, the current owners of Brooks, Aker RGI, said they were seeking a buyer for the company because they wanted to pay greater attention to their traditional lines of business in fishing and real estate. Brooks was acquired by Aker RGI in 1993 when the Norwegian-based parent company was known as Resource Group International. Aker RGI will be a minority investor in Brooks after the buyout.

Brooks distributes athletic footwear, apparel and accessories in more than 80 countries worldwide. Company headquarters are located at 11720 North Creek Parkway North, Bothell, Wash., 98011, near Seattle.