Industry News 3/22/2005

VF To Acquire Reef Holdings Corporation

VF To Acquire Reef Holdings Corporation
Fast-Growing Reef(R) Brand Expands VF's Presence in Action Sports Category

VF Corporation (NYSE: VFC) today announced that it has signed a definitive agreement to acquire all the outstanding stock of Reef Holdings Corporation ("Reef") from an investor group led by majority shareholder Swander Pace Capital. Terms were not disclosed. Based in San Diego, California, Reef is a leader in the growing action sports lifestyle market. The company is the global market leader in premium surf-inspired footwear and in 2004 launched an authentic surf apparel line.

Reef will remain headquartered in San Diego, California and will become part of VF's expanding Outdoor coalition, headed by Eric Wiseman, vice president and chairman of VF's Outdoor and Sportswear Coalitions. Outdoor coalition sales exceeded the $1 billion mark in 2004, and have grown nearly seven-fold over the past 5 years.

"As one of the world's great authentic surf brands, Reef(R) will be a terrific addition to our outdoor portfolio," said Wiseman. "We look forward to working with Reef's talented and highly experienced management team to support continued growth in their core footwear business and realize the significant opportunity to further expand their apparel offerings."

Added Reef president and chief executive officer, Dave Gatto, "VF has demonstrated its ability to successfully build and acquire strong lifestyle brands, at the same time ensuring that each brand's unique culture remains intact. We're enthusiastic about the prospects for continued growth in all our markets and categories, based on the combination of our disciplined commitment to our core market and VF's global resources."

The acquisition, which will be funded with existing cash balances and is expected to be completed by the end of April, is subject to normal closing conditions.

A fact sheet containing more information about Reef can be found on VF's website,

About the Company

VF Corporation is a leader in branded apparel including jeanswear, outdoor products, intimate apparel, image apparel and sportswear. Its principal brands include Lee(R), Wrangler(R), Riders(R), Rustler(R), Vanity Fair(R), Vassarette(R), Bestform(R), Lily of France(R), Nautica(R), Earl Jean(R), John Varvatos(R), JanSport(R), Eastpak(R), The North Face(R), Vans(R), Napapijri(R), Kipling(R), Lee Sport(R) and Red Kap(R).

VF Corporation's press releases, annual report and other information can be accessed through the Company's home page,

VF Corporation, VF Services, Inc.,
Cindy Knoebel, 336-424-6189 or 212-841-7141
Reef Holdings Corporation
 Mark Price, 858-514-3600, ext. 162

SOURCE: VF Corporation