Deckers Outdoor Corporation has entered into a license agreement with David Peyser Sportswear, Inc. for the sale of UGG Australia branded outerwear in the United States. Under the terms of the agreement, David Peyser Sportswear, Inc. will design, manufacture and market UGG Australia Outerwear, to be sold in better department stores and independent specialty stores. The initial term for the license is through December 2007, with an additional option for a three-year renewal.

David Peyser Sportswear, Inc., a family owned and operated supplier of outerwear and sportswear since 1948, is the parent company of Weatherproof Garment Co.(R) Weatherproof is a leader in the design of outerwear, including its exclusive 5-times sandwashed microfiber, microsuede, micro-oxford, and micro-shearling fabrics.

Doug Otto, President and Chief Executive Officer of Deckers Outdoor Corporation, stated “We are extremely pleased to announce this license agreement for UGG Australia. David Peyser Sportswear, Inc. is a leading manufacturer of high-end outerwear with a successful history of introducing new and innovative product to the marketplace. With established distribution at top retailers, we believe David Peyser Sportswear, Inc. represents an excellent partner to further the brand's position in the luxury goods sector. This agreement is another step in our continuing efforts to expand on the popularity and success of our UGG Australia brand. We remain committed to increasing value for our stockholders and capitalizing on the many opportunities that lie ahead.”