News Update: September 10, 2004

Vista, CA . . . DC Shoes has announced today it has mutually agreed with Fallen Footwear to discontinue their license arrangement.  Fallen will be moving operations immediately from DC’s headquarters. The move is an amicable one for both parties, stemming from the recent acquisition of DC by Quiksilver, who expressed interest in acquiring Fallen along with DC. Fallen owner Jamie Thomas, however, decided it was best for Fallen to stay independent in order for the brand to retain its direction and identity. Beginning May 2005, Fallen will be sold and distributed through Thomas’ Black Box Distribution.

DC President Ken Block said: “In less than a year, Fallen has come to be recognized as the top new emerging footwear brand in the skateboard industry.  We have thoroughly enjoyed being a part of this company’s beginning and I’m sure that Jamie will be very successful with it on his own.  It has been an inspiration working with Jamie and we completely understand his determination to retain control of the brand. We wish him well.”

“I am grateful to everyone at DC as they’ve been instrumental in Fallen’s success thus far,” said pro skateboarder and Fallen owner Jamie Thomas. “It’s comforting to know that they’ve offered to extend their footwear expertise into the 2005 Fall/Holiday season. I am also thankful for Quiksilver’s understanding and the effort that they’ve put forth to ensure we experience a smooth transition. Everyone at Black Box is excited and confident to be able to contribute to Fallen’s success and to further strengthen the brand in the skateboarding industry.”

Black Box will be hiring a new rep force and sales manager exclusively for Fallen starting November, 2004 for the Fall 2005 sell-in window. DC reps will continue to manage sell-in of Fallen product through Spring and Summer 2005 pre-booking windows.

DC wishes Jamie and everyone at Fallen well throughout this transition and into the future.