Though the move will incur a one-time charge of approximately $1.3 million in third quarter 2001, Rocky says it expects to recoup this cost within 15 months through reduced labour and other costs.

Mike Brooks, Chairman and Chief Executive Officer, commented, "Although difficult, because of our longstanding commitment to Nelsonville and the Hocking Valley, it is necessary for us to move production from our Nelsonville factory to our factory in Puerto Rico due to the accelerating trend in the footwear industry toward offshore manufacturing and sourcing." Rocky operates three factories in Puerto Rico, where it has had a presence since 1987. Last year, imports represented over 98% of all footwear sales in the United States.