Industry News 6/22/2006

K2 Sports to Move Business Operations from Vashon Island, Wash., to Seattle


K2 Sports to Move Business Operations from Vashon Island, Wash., to Seattle

VASHON ISLAND, Wash. (June 22, 2006) – K2 Sports, one of America’s leading manufacturers of skis, snowboards and outdoor recreational products, today announced plans to move its worldwide headquarters in the coming months from Vashon Island to Seattle, Wa. K2 Sports’
sales, finance, customer service and legal departments will move in August and its marketing teams will be in place at the new location by September. The move of K2’s business operations
will be completed when the product development, machine shop, test lab and prototyping personnel move to the new facility in early November.

K2 Sports has operated on Vashon Island since the early 1960s. During that time K2 has grown from a small American ski company which manufactured its products on Vashon, to a global enterprise with wholly owned subsidiaries in Europe, Canada, Norway and Japan. In addition to K2 skis, the company also sells K2, Ride, Morrow, Liquid and 5150 snowboards, Atlas and Tubbs snowshoes, K2 Inline skates, Ride Outerwear and related accessories around the globe. K2 Sports also has global operating responsibility for the Madshus brand of Nordic ski equipment based in Biri, Norway and has recently announced the acquisition of the Karhu and Line brands further adding to the scope and reach of its business.

“Due to the strong internal growth K2 Sports has posted over the past five years the ability to expand and grow our businesses has more opportunity for success in the dynamic Seattle environment,” said Robert Marcovitch, President of K2 Sports. “Although we have successfully run our business on Vashon for over 40 years, we believe that moving the business to a mainland location is critical to our continued growth.”

K2 Sports’ new facility will be located at 4201 6th Ave S. in Seattle and is comprised of some 28 thousand square feet of finished office space. The new offices will house the more than 200 employees who currently work at K2 global headquarters. No jobs will be affected by the move.
In addition, almost 90 thousand square feet of multi-purpose space will be converted into a new state of the art ski and snowboard prototyping facility and a unique marketing and showroom
environment.

“Maintaining world class graphic and product prototyping capabilities are mandatory for us to continue the legacy of innovation that we have had in our products,” said Anthony DeRocco, VP Global Marketing. “We are thrilled to be able to take what is an exceptional development environment and re-design it to an even higher level of competence.”

“I am confident that the move to Seattle’s revitalized SoDo district will be done with virtually no disruption to our business operations,” Marcovitch said. “We will continue to distribute and
warranty our products at our Fife, Wash., facility where we have operated for the past 5 years. The other business functions will move in a carefully staged manner to minimize the impact on our associates and customers.”

About K2 Sports.

K2 Sports operates under K2 Inc. (NYSE: KTO) a premier, branded consumer products company with a portfolio of leading brands including Shakespeare®, Pflueger® and Stearns® in the Marine
and Outdoor segment; Rawlings®, Worth®, K2 Licensed Products and Brass Eagle® in the Team Sports segment; K2®, Völkl ®, Marker® and Ride® in the Action Sports segment; and, Adio®, Marmot® and Ex Officio® in the Apparel and Footwear segment. K2's diversified mix of products is used primarily in team and individual sports activities such as fishing, watersports activities, baseball, softball, alpine skiing, snowboarding and in-line skating. Among K2's other branded products are Hodgman® waders, Miken® softball bats, Tubbs® and Atlas® snowshoes, JT® and Worr Games® paintball products, Planet Earth® apparel and Sospenders® personal loatation
devices.

Adio®, Atlas®, Brass Eagle®, Ex Officio®, Hodgman®, JT®, K2®, Marker®, Marmot®, Pflueger®, Planet Earth®, Rawlings®, Ride®, Shakespeare®, Sospenders®, Stearns®, Tubbs®, Volkl®, Worth® and Worr Games® are trademarks or registered trademarks of K2 Inc. or its subsidiaries in the United States or other countries

For more information on K2 Sports and its brands, visit www.k2sports.com