For the second quarter ended June 30, 2005, Deckers Outdoor Corporation’s net sales were $40.3 million compared to $40.5 million in the same period last year. Net earnings for the quarter were $2.7 million, compared to net earnings of $5.1 million in the same period last year.

For the six months ended June 30, 2005, net sales increased 23% to $104.6 million compared to $84.8 million in the same period last year. Net earnings for the first half of fiscal 2005 increased 11% to $11.6 million, compared to net earnings of $10.5 million in the same period last year.

Douglas Otto, Chairman of Deckers Outdoor, stated, "As expected, Teva's dependency on open toe sandals combined with the lingering cold weather during the Spring 2005 season negatively impacted our domestic Teva business during the quarter, while weakness in certain international markets affected Teva's overseas business. However, demand for UGG remained strong."

Mr. Otto stated. "We are re-engineering our product line with a heightened focus on innovation and a renewed dedication to capitalizing on proprietary technologies. We are also developing a more comprehensive line of non-weather dependent footwear. Finally, for our Spring 2006 season, we plan to significantly increase our marketing and advertising efforts in order to reinvigorate and sharpen our worldwide message for the brand."

Deckers Outdoor Corporation builds niche products into global lifestyle brands by designing and marketing innovative, functional and fashion-oriented footwear, developed for both high performance outdoor activities and everyday casual lifestyle use. The company's products are offered under the Teva, Simple and UGG brand names.