Mossimo Signs Manufacturing Agreement With Apparel Maker Winterland.

IRVINE and SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Oct. 5, 1998-- Mossimo Inc. (NYSE:MGX) and Winterland jointly announced Monday that they have entered into a multi-year agreement whereby Winterland, the San Francisco-based producer of licensed and private-label apparel and merchandise, will be the exclusive manufacturer of Mossimo's T-shirts and sweatshirts.

Mossimo, one of the country's leading contemporary denim-based sportswear companies, will continue to design the product and handle distribution. Also as part of the agreement, Winterland has acquired various assets of Mossimo's screen-printing subsidiary, Giannico, including equipment for production, screen-printing, warehousing and computerized inventory controls. The equipment will be installed in Winterland's new 160,000-square-foot Northern California headquarters, which will be operational in November.

"We are very impressed with Winterland's creativity and commitment, and are convinced that Winterland is the best choice for a long-term partnership," said John Brincko, CEO of Mossimo. "This venture represents another step forward in our plans to streamline our operations. By outsourcing our manufacturing of T-shirts and sweats, we can further lower our overhead expenses and focus on what we do best product design and development."

Donn Tice, Winterland's CEO added: "This is an outstanding win-win deal for both companies. Mossimo gains a high-quality, reliable manufacturing partner in Winterland, while being able to exit company-owned manufacturing, and Winterland gains a long-term exclusive relationship, state-of-the art production capacity and an outstanding sales team."

The agand recently acquired Turbo, a private-label apparel company, and Active Wear, which licenses products in the urban music market.

Winterland was founded in San Francisco as an outgrowth of Bill Graham's concert promotion business. The company is a leading producer of licensed and private-label apparel and related merchandise. Artists on Winterland's roster include major names such as Backstreet Boys, Marilyn Manson, Eric Clapton, 'N SYNC, and legends such as Jimi Hendrix, Led Zeppelin and The Doors.

Mossimo is the signature collection of contemporary men's and women's denim-based sportswear with fashion touches from designer Mossimo Giannulli. Other collections under the Mossimo label include men's tailored clothing; men's ties; women's swimwear and bodywear; and unisex collections of optics and accessories. Mossimo is available in department stores and specialty chains nationwide.