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SKECHERS Creates Kitson-Branded Footwear Line; Leading Lifestyle Footwear Company Partners with...

Publication: Business Wire
Date: Thursday, August 4 2005

MANHATTAN BEACH, Calif. -- SKECHERS USA, Inc. (NYSE:SKX), the world leader in trend-setting footwear, announced today that it is developing Kitson-branded footwear for the ultra-trendy Los Angeles boutique that has been called "the place to be for fashionable stars." Launching in Fall

2005 with a women's and girl's sneaker that proudly displays the Kitson name in a multitude of fabrics, the line will be available first at the trendy shopping spot frequented by Paris and Nicky Hilton, Lindsay Lohan and Nicole Ritchie, among others, and then at select department stores and third-party specialty retailers around the world.

"Kitson is synonymous with hip; and it's on fire. The consumers' fascination with the lives of young Hollywood made Kitson quickly become a lifestyle brand," began Michael Greenberg, president of SKECHERS. "The store caters to its celebrated clientele by offering only the hottest -- or what will be the hottest -- lines; we think the Kitson footwear is going to be embraced by the influencers and the aspirational."

"In merchandising Kitson, we look for design, quality and above all, a cool factor -- be it Nicky's (Hilton) Chick and Gwen's (Stefani) L.A.M.B. lines or our run of Kitson-message T-shirts," stated Fraser Ross, owner of Kitson. "I'm thrilled we are going to have an ongoing line of Kitson footwear to complement our amazing offering ... and I think SKECHERS' proven success over a decade and its reputation in the business makes the Company the ideal partner."

Under the global agreement with Kitson, the Company will offer a multitude of styles under various price points. This agreement marks the Company's first deal for a licensed footwear line under the name of a boutique, though it has experience designing, marketing and distributing fashion footwear under six uniquely branded names.

Greenberg continued: "We also see Kitson footwear as an opportunity to expand our fashion offering into better stores and boutiques. With a name like Kitson, we believe this line will not only fly out of Kitson's boutique, but out of the other stores that carry it."

About Kitson

Kitson was established just five years ago on hip Robertson Boulevard in Los Angeles and has quickly become the favorite stop for many celebrities and the who's who in Hollywood. The boutique's merchandise is seen in leading fashion and lifestyle publications and is cited by many of these same magazines as the shopping destination for the latest trends. Kitson's team of buyers create and hunt for the hottest and newest trends as they shop the world. Kitson's products are also available through its e-commerce site www.shopkitson.com.

About SKECHERS

SKECHERS USA, Inc., based in Manhattan Beach, Calif., designs, develops and markets a diverse range of footwear for men, women and children under 12 unique brand names. The Company has also granted select third party licenses for SKECHERS-branded apparel, swimwear and hosiery. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the Company's global network of distributors and Canadian and European subsidiaries. Please visit www.skechers.com or call the Company's information line at 877-INFO-SKX.

This announcement may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which can be identified by the use of forward-looking terminology such as "may," "will," "believe," "expect," "anticipate" or other comparable terminology. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements and reported results shall not be considered an indication of the Company's future performance. Factors that might cause or contribute to such differences include international, national and local general economic, political and market conditions; intense competition among sellers of footwear for consumers; changes in fashion trends and consumer demands; popularity of particular designs and categories of products; the level of sales during the spring, back-to-school or holiday selling seasons; the inability to anticipate, identify, interpret or forecast changes in fashion trends, consumer demand for the Company's products and the various market factors described above; the ability of the Company to maintain its brand image; the ability to sustain, manage or forecast the Company's growth and inventories; the ability to secure and protect trademarks, patents and other intellectual property; the loss of significant customers, decreased demand by industry retailers and cancellation of order commitments; potential disruptions in manufacturing related to overseas sourcing and concentration of production in China, including, without limitation, difficulties associated with electrical shortages or work stoppages that may lead to production delays; increased costs of freight and transportation to meet delivery deadlines; business disruptions due to energy shortages or natural disasters such as an earthquake in California where our domestic warehouse, headquarters and a substantial number of our retail stores are located; changes in business strategy or development plans; the ability to obtain additional capital to fund operations, finance growth and service debt obligations; the ability to attract and retain qualified personnel; compliance with recent legislation regarding corporate governance, including the Sarbanes-Oxley Act of 2002; and other factors referenced or incorporated by reference in the Company's annual report on Form 10-K for the year ended December 31, 2004 and for the Company's Form 10-Q for the quarter ended March 31, 2005.

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