Cutter & Buck Inc. has signed a definitive agreement to be acquired by New Wave Group AB. New Wave is a design and marketing firm for consumer products for the corporate promotional and consumer retail markets in Europe. The combination of the two companies provides Cutter & Buck Inc. a significantly expanded product offering for the United States market and gives New Wave Group AB an upscale golf & sportswear brand to distribute in Europe.

Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, Cutter & Buck Inc. shareholders will receive $14.38 per share of Cutter & Buck Inc. common stock for an aggregate consideration of $156.5 million.

“The two companies' brands are very complementary, allowing us to expand the distribution of Cutter & Buck's brands in Europe and the New Wave Group's brands in the United States,” said Goran Harstedt, New Wave Group AB's deputy Chief Executive Officer. “We identified Cutter & Buck Inc. as the company to carry some of our brands, especially New Wave and Clique, in the United States on the corporate promotional market because, like New Wave Group AB, they are founded on great customer service and operational excellence. In addition, they truly understand the markets we operate in. Moreover, we expect to reach substantial synergies within buying, products and distribution.”

“We are excited about the opportunities presented by this combination,” said Ernie Johnson, Cutter & Buck Inc.'s Chief Executive Officer. “We will have access to proven products that should provide us significant growth in our current markets. In addition, this combination allows Cutter & Buck Inc. access to New Wave Group AB's broad distribution network in Europe as well as New Wave Group AB's exceptional product related resources throughout the world.”

The transaction is subject to a number of customary closing conditions, including approval by the shareholders of Cutter & Buck Inc. and the receipt of applicable regulatory approvals. The results of Cutter & Buck will be consolidated with New Wave Group AB's financial statement from and after the closing, expected for the end of May 2007. The acquisition is expected to generate a positive effect on the financial results of New Wave Group for its current fiscal year.