Deckers Outdoor Corporation announced that it has signed two separate license agreements for men's sportswear and headwear for the United States.

Deckers Outdoor Corporation signed a license agreement with Capital Mercury Apparel, Ltd., a privately owned New York-based manufacturer of apparel. Under terms of the agreement, Capital Mercury will design and market Teva men's sportswear with distribution targeted at better department stores, specialty outdoor retailers and sporting goods stores throughout the U.S. The initial license term is through November 2007, with an additional three-year renewal term.

Douglas Otto, Chairman and Chief Executive Officer of Deckers Outdoor Corporation, stated “Since acquiring the worldwide rights to Teva almost a year ago we have been very selective in our search for licensing opportunities that strategically fit with the lifestyle nature of the brand. Capital Mercury's ability to produce innovative, functional apparel that captures the essence of Teva's heritage was extremely important in our decision. We are excited about our prospects and we look forward to capitalizing on the many opportunities that lie ahead.”

Deckers also announced that it has signed a license agreement for headwear in the United States with the Outdoor Cap Company, Inc. The initial license term is through October 2007, with an additional three-year renewal term.

Mr. Otto continued, “Headwear was a logical extension for Teva and we are thrilled with our partnership with the Outdoor Cap Company. We were very impressed with their operations and capabilities, as well as their list of clients which includes other premium brands such as Major League Baseball and Starter, as well as numerous colleges and universities throughout the U.S.”

BHPC Global Licensing, the worldwide licensing agent for Deckers Outdoor Corporation, was instrumental in obtaining both license agreements on behalf of Deckers and is currently pursuing additional licensing opportunities for Deckers' Teva, Simple and Ugg brands.

“I truly believe that the Teva name has never been stronger and I look forward to building our relationship with these new licensees,” concluded Mr. Otto. “We remain committed to executing a strategy that will result in long-term growth and increased shareholder value.”