Oakley agrees to acquire The Optical Shop of Aspen

Oakley has signed a definitive agreement to acquire all of the outstanding stock of privately held Osa Holding, Inc. and its wholly owned subsidiary, The Optical Shop of Aspen (Osa), one of the most respected retailers of luxury eyewear. Included in this acquisition are The Optical Shop of Aspen's 14 retail locations. Specific terms of the agreement were not disclosed.

'Oakley has established a renewed focus on optics and is implementing strategies to build business platforms for sustainable growth and profitability', said Scott Olivet, chief executive officer, Oakley, Inc. 'The Optical Shop of Aspen, along with our recent acquisition of Oliver Peoples, strengthens our premium eyewear platform. In addition, Osa will help build Oakley's prescription eyewear business and further develop the company's retail capabilities'.

'For more than 30 years we have cultivated a loyal consumer following based on innovative eyewear collections, outstanding customer service and unique retail environments', said Larry Sands, founder and chief executive officer, The Optical Shop of Aspen. 'I am passionate about the success of our business. I care about my employees, their future and the future of this brand. I am confident this partnership will help elevate Osa to new heights and allow us to realize the significant opportunities before us'.

The Optical Shop of Aspen currently has 14 retail stores located in Arizona, California, Colorado, Florida, New Mexico and Missouri, and will operate as a wholly owned subsidiary of Oakley, Inc. After the completion of the merger, Sands will continue as chief executive officer of Osa and maintain independent ownership and operation of Osa International, a separate wholesale company.

Oakley expects the acquisition to be closed during the second quarter of 2006.