K2 Raises Full Year Earnings Estimate

K2 Inc. expects adjusted diluted earnings per share for the full year to be in the range of 87 cents to 88 cents, exceeding K2's previous guidance of 83 cents to 86 cents.

On a preliminary basis, K2 expects 2007 Adjusted diluted earnings per share to exceed its 2006 revised/increased guidance. While K2 anticipates softness in its winter sports business in 2007 due to the impact the warm winter and poor snow conditions have had on the current winter sports season, K2 expects to benefit from the “diversity of its global sporting goods business and capitalize on the strength of its portfolio.”

Reconciliation of Forecast GAAP to Forecast Adjusted Results
(unaudited in thousands, except for per share amounts)

                                                   Forecast Twelve
                                                         Months
                                                  Ended December 31,
                                                          2006
                                                 ---------------------
                                                    Low        High
                                                 ---------- ----------
Net Income Reconciliation:
------------------------------------------------
GAAP Net Income (a)                                $38,000    $38,900
Add: Amortization of acquired intangibles (b)        2,351      2,351
  Non-cash stock compensation expense (c)            1,643      1,643
  Amortization of capitalized debt costs (d)         1,420      1,420
  Amortization of capitalized debt costs on
   converted debentures (e)                            114        114
  Accrued interest on converted debentures (f)         120        120
  Conversion premium on converted debentures (g)       563        563
  Write-off of deferred debt costs (h)                 442        442
                                                 ---------- ----------
Adjusted Net Income                                $44,653    $45,553
                                                 ========== ==========

GAAP and Adjusted Diluted Shares Outstanding        55,476     55,476

Adjusted Diluted Earnings Per Share                  $0.87      $0.88

See the following footnotes and related information.

                   FOOTNOTES AND RELATED INFORMATION

Explanation of Adjustments:

(a) Amounts represent K2's forecast net income in accordance with U.S.
    generally accepted accounting principles.

(b) Adjustment represents the forecast non-cash amortization expense,
    net of tax, of acquired intangible assets resulting from K2's
    acquisition activities.

(c) Adjustment represents the forecast non-cash compensation expense,
    net of tax, resulting from restricted stock awards and stock
    option expense in accordance with APB 25 and SFAS 123R.

(d) Adjustment represents the forecast non-cash amortization expense,
    net of tax, of capitalized debt costs associated with K2's
    revolving credit facility, $75 million convertible debentures and
    senior notes. These capitalized costs are amortized over the term
    of the related debt.

(e) Adjustment represents the forecast non-cash amortization expense,
    net of tax, of capitalized debt costs on the $25 million
    subordinated convertible debentures from January 1, 2006 through
    the conversion date (November 6, 2006).

(f) Adjustment represents the forecast accrued interest expense, net
    of tax, as of the conversion date, on the $25 million of
    subordinated convertible debentures that was paid in shares of K2
    common stock.

(g) Adjustment represents the conversion premium on the $25 million of
    subordinated convertible debentures that was paid in shares of K2
    common stock. The conversion premium is not tax deductible and
    therefore there is no net of tax impact reflected.

(h) Adjustment represents the forecast balance, net of tax, as of the
    conversion date, of capitalized debt costs associated with the $25
    million of subordinated convertible debentures.