Oakley Settles Lawsuit with I-Tech Sport Products Inc. and Grants Exclusive License for Optically Correct Hockey Shields.

Business Editors/Legal Writers

FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--April 3, 2003

Oakley Inc. (NYSE:OO) today announced that it has settled its patent infringement lawsuit filed on Dec. 28, 2001 against I-Tech Sport Products Inc., for patent infringement and unfair competition alleging the infringement by ITECH of Oakley's U.S. Patent No. 5,815,848 -- "Impact Resistant Face Shield for Sporting Helmets."

In conjunction with the settlement of the suit, ITECH has received an exclusive license agreement to use this patent for ITECH's hockey shields. Oakley will receive an undisclosed per unit royalty and will also continue to use its patented technology with its own line of hockey shields. Oakley also has received notice of allowance of this patent in Canada and has other foreign equivalents of this patent pending in several key countries worldwide. By way of the agreement ITECH's exclusive license, and royalty payments, shall apply worldwide.

"We hold the patented technology necessary to make optically correct face shields and feel that this is a great opportunity to leverage this patent into a royalty stream," commented Link Newcomb, Chief Operating Officer.

"This settlement further validates our face shield patent which is also used for football helmets. Oakley intends to maintain its exclusive use of the patent in the manufacture, sale and distribution of optically correct football shields, already in use by many collegiate and professional athletes," Newcomb concluded.

Specific terms of the agreement were not disclosed.

About Oakley Inc.

Oakley: a world brand, driven to ignite the imagination through the fusion of art and science. Building on its legacy of innovative, market-leading, premium sunglasses, the company also offers an expanding line of premium performance footwear, apparel, accessories, watches and prescription eyewear to consumers in more than 70 countries. Trailing 12-month revenues through Dec. 31, 2002 totaled $489.6 million and generated net income of $42.4 million -- an 8.7 percent net margin, excluding a European restructuring charge of $1.8 million.

Oakley news releases, SEC filings and the company's Annual Report are available at no charge through the company's Web site at www.oakley.com.

Safe Harbor Disclaimer

This news release contains certain statements of a forward-looking nature. Such statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including: risks related to the company's ability to manage rapid growth; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; the ability of those manufacturing partners and the company's internal production operations to increase production volumes on raw materials and finished goods in a timely fashion in response to increasing demand and enable the company to achieve timely delivery of finished goods to its retail customers; the ability to provide adequate fixturing to existing and future retail customers to meet anticipated needs and schedules; the dependence on eyewear sales to Sunglass Hut which is owned by a major competitor and, accordingly, could materially alter or terminate its relationship with the company; the company's ability to expand distribution channels and its own retail operations in a timely manner; unanticipated changes in general market conditions or other factors, which may result in cancellations of advance orders or a reduction in the rate of reorders placed by retailers; continued weakness of economic conditions could continue to reduce or further reduce demand for products sold by the company and could adversely affect profitability, especially of the company's retail operations; further terrorist acts, or the threat thereof, could continue to adversely affect consumer confidence and spending, could interrupt production and distribution of product and raw materials and could, as a result, adversely affect the company's operations and financial performance; the ability of the company to integrate acquisitions without adversely affecting operations; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; the acceptance in the marketplace of the company's new products and changes in consumer preferences; reductions in sales of products, either as the result of economic or other conditions or reduced consumer acceptance of a product, could result in a buildup of inventory; the ability to source raw materials and finished products at favorable prices to the company; the potential effect of periodic power crises on the company's operations including temporary blackouts at the company's facilities; foreign currency exchange rate fluctuations; earthquakes or other natural disasters concentrated in Southern California where substantially all of the companies operations are based; the European restructuring charge is based on management's estimates of expected costs, and actual results may vary; the company's ability to identify and execute successfully cost control initiatives; and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended Dec. 31, 2001 and other filings made periodically by the company. The company undertakes no obligation to update this forward-looking information.