Oakley Releases 512 MB Version of THUMP Digital Music Eyewear: Storage Capacity Doubled in New Version of OAKLEY THUMP

FOOTHILL RANCH, Calif., May 31, 2005 (PRIMEZONE) -- Oakley, Inc. (NYSE:OO) today announced the addition of a 512MB version to its highly successful OAKLEY THUMP(tm) line of digital music eyewear and a new frame and lens color combination for the 256MB model. The upgraded OAKLEY THUMP(tm), which is available for immediate delivery beginning June 1, effectively doubles the amount of available memory ensuring ample storage for up to 120 songs (digital music only) or a combination of music and data.

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“Creating the world’s first digital audio eyewear was just the first step,” said Oakley President Colin Baden. “Our brand is synonymous with innovation, and we are raising the bar once again by doubling the storage capacity of OAKLEY THUMP(tm). New color and lens options will give customers an even wider range of choices for personalizing the look and tailoring the optical performance for specific environments.”

“The benefits of OAKLEY THUMP(tm) are unrivaled,” Baden continued. “No other portable music player eliminates dangling wires by integrating a state-of-the-art digital audio system into the lightweight architecture of patented optical technology. Even though nothing comes close to offering the freedom of this unique invention, we are sharpening our competitive edge by doubling the storage capacity but keeping the same price point for non-polarized versions,” Baden concluded.

With no cords or bulky player to get in the way, OAKLEY THUMP(tm) reinvents the concept of portable music players by offering unprecedented freedom to the listener allowing listeners to enjoy their music in places where tethered players can be cumbersome or even dangerous.

OAKLEY THUMP(tm) features a fully integrated audio system, optimized for acoustically precise playback of digitally compressed files including MP3, WMA (DRM - both enabled and disabled) and WAV file formats. Oakley designed the earphones and lenses to flip up and down, making it practical to carry on a conversation or listen to music indoors. Positioned with three directions of movement, the Mylar speakers are custom engineered to offer a wide range of frequency response, up to the 20 kHz limit of human hearing. Patented XYZ Optics(r) provides unsurpassed clarity, UV protection and impact resistance.

The 512MB version of OAKLEY THUMP(tm) is available in the following frame/lens (MSRP) combinations: Matte Black/Black Iridium ($495), Tortoise/VR50 ($495) and Tribal/Black Iridium ($495). The OAKLEY THUMP(tm) 256MB version is available in Dark Grey/Light Grey ($395), Matte Black/Black Iridium Polarized ($495) and Red Camo/Black Iridium Polarized ($545).

OAKLEY THUMP(tm) is currently available at Circuit City(r), Sunglass Hut(r), Good Guys(r), O Store(r) and Iacon stores domestically as well as online at www.oakley.com. Internationally, the product launched in Europe, Africa, Australia and Canada during the first quarter of 2005 and Oakley expects to launch OAKLEY THUMP(tm) in Brazil and Japan by the end of the second quarter. Additional information can be found at www.oakley.com/thump.

About Oakley, Inc.

Oakley: a world brand, driven to ignite the imagination through the fusion of art and science. Building on its legacy of innovative, market-leading premium sunglasses, the company also offers an expanding line of premium performance apparel and accessories, footwear, prescription eyewear, electronics and timepieces to consumers in more than 100 countries. Trailing-12-month net sales through March 31, 2005 totaled $598.6 million and generated net income of $44.7 million. Oakley, Inc. press releases, SEC filings and the company’s annual report are available at www.oakley.com.

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Safe Harbor Disclaimer

This press release contains certain statements of a forward-looking nature. Such statements are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to growth and strategies, future operating and financial results, financial expectations and current business indicators are based upon current information and expectations and are subject to change based on factors beyond the control of the company. Forward-looking statements typically are identified by the use of terms such as “may,” “will,” “should,” “might,” “believe,” “plan,” “expect,” “anticipate,” “estimate” and similar words, although some forward-looking statements are expressed differently. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including but not limited to: the acceptance in the marketplace of the company’s new products and changes in consumer preferences; risks related to the sale of OAKLEY THUMP(tm) and new product introductions in the company’s electronics category; the company’s ability to maintain approved vendor status and continue to receive product orders from the U.S. military; the company’s ability to integrate and operate acquisitions; the company’s ability to manage rapid growth; risks related to the limited visibility of future sunglass orders associated with the company’s “at once” production and fulfillment business model; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; the ability of those manufacturing partners and the company’s internal production operations to increase production volumes on raw materials and finished goods in a timely fashion in response to increasing demand and enable the company to achieve timely delivery of finished goods to its retail customers; the ability to provide adequate fixturing to existing and future retail customers to meet anticipated needs and schedules; the dependence on eyewear sales to Luxottica Group S.p.A, which, as a major competitor, could materially alter or terminate its relationship with the company; the company’s ability to expand and grow its distribution channels and its own retail operations; unanticipated changes in general market conditions or other factors, which may result in cancellations of advance orders or a reduction in the rate of reorders placed by retailers; a weakening of economic conditions that could continue to reduce demand for products sold by the company and could adversely affect profitability, especially of the company’s retail operations; terrorist acts, or the threat thereof, that could adversely affect consumer confidence and spending, could interrupt production and distribution of product and raw materials, and as a result, could adversely affect the company’s operations and financial performance; the ability of the company to integrate licensing arrangements without adversely affecting operations and the success of such initiatives; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; reductions in sales of products, either as the result of economic or other conditions or reduced consumer acceptance of a product, which could result in a buildup of inventory; the ability to source raw materials and finished products at favorable prices to the company; the potential impact of periodic power crises on the company’s operations, including temporary blackouts at the company’s facilities; fluctuations in foreign currency exchange rates; earthquakes or other natural disasters concentrated in Southern California where a significant portion of the company’s operations are based; the company’s ability to identify and successfully execute cost control initiatives; and other risks outlined in the company’s SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended December 31, 2004, and other filings made periodically by the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to update this forward-looking information. Nonetheless, the Company reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.

CONTACT: Oakley, Inc.
Diane Thibert, Public Relations
(949) 672-6888
dthibert@oakley.com
or
Lance Allega, Corporate Communications
(949) 672-6985
lallega@oakley.com

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