SEATTLE January 14, 1999

The phenomenal growth of the travel industry represents an enormous opportunity for specialty outdoor retailers willing to position and market themselves as an ideal source for travel-related products. Ex Officio is already working in partnerships with numerous retailers to develop the Travel Oasis program ñ dynamic retail environments that specifically target the active travel market. The results have been dramatic and profitable for all concerned. Let the facts speak for themselves:

• Spring year over year combined total growth in Ex Officio sales for the 21 retail doors participating in the Travel Oasis program: +81.71%
• Total year over year growth in Ex Officio sales for the 21 retail doors participating in the Travel Oasis program: +54.63%

These are exciting times to be in the active travel outfitting business. Itís important for specialty retailers to take advantage of the opportunities and not be left behind. According to Paul Goodman, Manager, The Benchmark ñ Farmington MI, "The hard core outdoor business has died off. Sure, there are some hard core customers left, but the fad and followers no longer need to buy from us. They can buy similaróif not the sameóbrands elsewhere. We need to find ways to bring the travel customer back into our stores. Itís our product assortment, customer service, and knowledge that weíre known for."

"Weíre in a change or die business," Goodman adds, "Itís refreshing that Ex Officio is willing to support our store with fresh ideas and an approach that will capture and maximize the travel opportunity."

Specialty retailers who target the active traveler with travel-friendly retail environments, travel-specific clothing, accessories, and gear will be in the best position to succeed in this exploding market niche. However, to be successful the retailer must be committed to selling travelódedicating floor space, advertising, using creative merchandising techniques, and educating employees about active travel and travelers.

Outdoor Retailer Magazine Editor-in-Chief, Joan Alvarez summed up the current market dynamic in a November 1998 piece: "The growing majority of active people today may not participate in traditional outdoor activities like climbing, backpacking or kayaking, but they do embrace the outdoor lifestyle. They may never be in the market for technical gear, but they do see themselves as outdoor participants ñ as birders, wildlife photographers, adventure travelers and citizens of the world."

"They have to buy their durable, comfortable, stylish apparel, footwear, hats, binoculars, and polarized sunglasses somewhere; donít make them go to catalogers, department stores, and general sporting goods stores. Let them know that they belong in your store, that you recognize them as legitimate outdoor participants. Make them shop with you. Actively show them through your local radio, cable television, and print advertising that you have what they need for their adventures ñ even if it is a walking trip through the vineyards of Italy or a driving trip through the Smoky Mountains. It may not be your idea of a real outdoor adventure, but itís theirs and, that, in the long run, is the only thing that really counts."

Consider Alvarezí observations in light of these recent statistics from the World Travel & Tourism Council:

• Travel is the Worldís largest industry, expected to generate $4.4 trillion and 231 million jobs in 1998 alone. *
• By the year 2010 the travel industry will undergo an explosive 56% increase, growing to $10 trillion annually and generating over 328 million jobs. *
• Adventure travel is the fastest growing segment of the travel industry.
• Clothing is the #1 pre-departure purchase.

To find out more about the Ex Officio Travel Oasis program, visit Meeting Room #150-A at the upcoming Outdoor Retailer Show.

(* World Travel & Tourism Council)

Founded in 1986, Seattle-based Ex Officio, Inc. manufactures multi-use travel apparel that combines functionality, comfort, and style. Distributed throughout specialty outdoor, fly fishing, travel, and luggage stores, Ex Officio has been the category leader in the exploding Travel Wear market for the past six years. For a free consumer guide or to find the dealer nearest you, call 1-800-644-7303. Outdoor Retailer Meeting Room #150-A