News courtesy of http://www.skipressworld.com

Huntington Beach, Calif. (Ski Press)-Quiksilver, Inc. announced an agreement

in principle to acquire the Rossignol Group SA. The Rossignol Group owns and

operates a diversified portfolio of premier brands including Rossignol, Dynastar,

Lange and Look in winter sports, as well as Cleveland Golf. Quiksilver believes

the acquisition will be accretive by between $0.04 and $0.06 to earnings per

share in the current fiscal year.

Headquartered in Voiron, France, the Rossignol Group achieved total sales of

approximately $625 million for the twelve months ended September 30, 2004. The

company’s broad product line includes skis, ski boots and bindings, snowboards,

snowboard boots and bindings, and related apparel and accessories, as well as

golf clubs and golf apparel and accessories. Quiksilver, Inc. reported revenues

of $1.3 billion for its fiscal year ended October 31, 2004.

Robert B. McKnight Jr., Chairman of the Board and Chief Executive Officer of

Quiksilver, Inc., commented, “Joining forces with Rossignol allows us to create

the number one outdoor sports lifestyle company in the world. Just as Quiksilver

is the leader in boardsports, Rossignol leads the winter sports market, and

Cleveland is a powerful force in golf. Rossignol’s strong stable of brands is

a perfect complement to our portfolio. Furthermore, we both share the same values,

culture and philosophies, making this combination that much more compelling.

Many opportunities lie ahead, and we look forward to capitalizing on the tremendous

synergies that come from this partnership.�

Laurent Boix-Vives, Chairman of the Board of Skis Rossignol SA, said, “I am

happy to take this next step with Quiksilver. I have been intimately involved

with the Rossignol Group for fifty years, and this combination offers a bright

future and prospects for growth and development wholly consistent with the group’s

past achievements and strategy, to which clients and employees alike are sensitive.

I see in Quiksilver a corporate culture and commitment to sports and entertainment

that are Rossignol’s priorities since the very beginning. Quiksilver has chosen

France for its European headquarters, and I have known and had an excellent

relationship with Bernard Mariette, Quiksilver’s President, for a very long

time. My endeavors with the Quiksilver-Rossignol group are such that there cannot

be a better transaction that would guarantee the longevity of the group that

I have built. Finally, the offer is excellent for all Rossignol shareholders

from a financial point of view.�

Quiksilver will purchase a majority holding of the Rossignol Group controlled

by Mr. Boix-Vives and launch a public tender offer for the minority shares at

$25.50 per share (EUR 19.00 per share), which equates to a purchase price of

approximately $320 million for 100% of the shares. The purchase of the majority

holding will be paid for with approximately 30% in shares of Quiksilver, Inc.

and 70% in cash, a portion of which will be deferred, while the minority holding

will be purchased for 100% cash. Mr. Boix-Vives will have a key advisory role

with both Quiksilver, Inc. and Cleveland Golf. Additionally, the Boix-Vives

family will retain a portion of its direct ownership, an approximate 35% interest,

in Cleveland Golf for at least 4.5 years. The acquisition is subject to customary

regulatory approvals in France and elsewhere, and has been submitted to the

workers council for review. The transaction is expected to close during Quiksilver’s

third quarter.


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