2003 Product Gross Margins

OAKLEY WHOLESALE

• Sunglasses 70%

• Prescription 70%

• Footwear 40%

• Apparel 43%

• Watches 60%

• Goggles 45%

OAKLEY RETAIL

• Sunglasses 85%

• Prescription 88%

• Footwear 69%

• Apparel 72%

• Watches 80%

• Goggles 73%

Consolidated gross margins, including non-product costs, were 56.7% in 2002.

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