Business Model Evolution

March 21, 2007

Scott Olivet, Chief Executive Officer

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Agenda

§ Company Overview

§ The Changing World

§ Oakley Evolution

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Company Overview

§ Founded in 1975

§ 2006 revenue: $762 million

§ Segment sales

– Optics 73% | AFA 21% | Other 6%

– Wholesale 77% | U.S. Retail 23%

– U.S. 56% | International 44%

§ Distribution

– 110+ countries through 20,000+ accounts

– 225+ company-owned retail locations

§ 3,400+ worldwide employees

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Phase IVPhase IIIOwned Retail

Oakley Stores

Sunglass Icon

Phase IIProduct

Diversification

Rx

Apparel

Footwear

Accessories

Phase I

Mad Science is Born

Hand Grips

Goggles

Sunglasses

Company Growth Phases

1975 2007+1997 2006

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The Changing World

1. Companies usually try to move beyond their core too quickly

2. True brand authenticity is hard to come by… and gettingharder to create

3. Consumer’s relationship to brands has changed forever

4. The consumer defines you (the brand and the company) by thelast touch point

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Oakley Evolution

The Changing World

1. Growing too fastbeyond the core

Oakley’s Evolution

§ Optics, optics, optics§ Fully utilize our strengths

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Before

Focus on the Core

SunglassesSunglassesGogglesGoggles

New New BusinessesBusinesses

• Rx• Apparel• Footwear• Accessories• Watches• Electronics

Now

OpticsOpticsApparelApparel

FootwearFootwearAccessoriesAccessories

• Sunglasses• Goggles• Rx• Electronically enabled eyewear

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Optics Growth Opportunities

Gender Product Use Style Influence

Multiple BrandsChannelGeography

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Utilize Our Strengths

575+ patents Oakley Hydrophobic Lens

Research & Design

Manufacturing Limited Editions

RadarTM

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Oakley Evolution

The Changing World

1. Growing too fastbeyond the core

Oakley’s Evolution

§ Optics, optics, optics§ Fully utilize our strengths

§ Everything connected to heritageand authenticity

§ Be unapologetic for who we are§ Multi-brand

2. Brand authenticityharder to create

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Brand Authenticity and Integrity

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Oakley: Authentic Across Sports Categories

Golf Skate Motocross

SnowSurf Motorsports

MTB Football Multi-sport

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Oakley: Iconic Product

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Oakley: Be Who We Are

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Market Positioning

PerformanceActive

LifestyleSport Inspired

Fashion Fashion$450

375

300225150

750

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Market Positioning

PerformanceActive

LifestyleSport Inspired

Fashion Fashion$450

375

300225150

750

BLOC

Brand: Above the Clutter

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Oakley Evolution

The Changing World

1. Growing too fastbeyond the core

Oakley’s Evolution

§ Optics, optics, optics§ Fully utilize our strengths

§ Everything connected to heritageand authenticity

§ Be unapologetic for who we are§ Multi-brand

2. Brand authenticityharder to create

§ Bring back emotional connection§ Allow fast but go deep§ Connect consumers to the culture,

not just the product

3. Consumer relationshipto brands continues tochange

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Flak JacketTMThump ProTM RadarTM

Sport Performance

Oakley Hydrophobic Lens

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Oakley Women’s Collection

SpeechlessTM

DisobeyTM

BehaveTM

DartTM

ScriptTM

GrapevineTM

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Multiple Campaigns – One Brand

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The Oakley Brand – Integrate

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The Oakley Brand – Communicate

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The Oakley Brand – Educate

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The Oakley Brand – Participate

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Oakley Evolution

The Changing World

1. Growing too fastbeyond the core

Oakley’s Evolution

§ Optics, optics, optics§ Fully utilize our strengths

§ Everything connected to heritageand authenticity

§ Be unapologetic for who we are§ Multi-brand

2. Brand authenticityharder to create

§ Bring back emotional connection§ Allow fast but go deep§ Connect consumers to the culture,

not just the product

3. Consumer relationshipto brands continues tochange

§ Improve service§ Tell our product and brand story

at retail

4. You are defined by thelast touch point

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Customer Service

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Retail – Oakley Stores

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Retail – Multiple Platforms

OpticalShop ofAspen

121 locations 20 locations 130 locations**Definitive agreement signed in January 2007

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Conclusion

Product

Consumer Experience

Brand

“For me to bepart of you,

you need to bepart of me.

And don’t findme, I’ll find

you.”

“I want it custom,now, free.”

“I want it when I want it, how I want it.”