K2 Sports plans to transition its shipping operations into a warehouse facility adjacent to the Company’s new headquarters in Seattle. K2 began relocating its finance, legal, sales, customer service and operations personnel in September 2006, and with this new move, will consolidate the entire K2 Sports USA portfolio under one roof for the first time. The warehouse operations move will be complete by the start of the 2007 winter shipping season and will use existing customer ordering systems.

“The new K2 location is much more efficient, provides easy access for all modes of transportation, and is just minutes away from one of the West Coast’s largest ports of entry,” said Kathy McGuire, Vice President of Global Operations of K2 Sports. “The new space will allow K2 to proactively attack the complexity and compressed delivery requirements of our alpine ski, snowboard, snowshoe, telemark and cross country ski businesses; and the building layout with increased floor space will allow for tremendous flexibility.”

“K2 is in a rapid growth mode, and we needed a modern warehouse to support that growth,” said Robert Marcovitch, President of K2 Sports. “By centralizing all of our brands and operations under one roof, we’ll be able to maximize communication and efficiencies between our global staff and our dealers. K2 is proud of its Northwest roots and the company intends to grow our operations in Seattle. We anticipate most of our current warehouse staff with an average 15-year tenure will be making the move, and we believe our customers will enjoy an even higher level of efficiency and reliability than they have experienced in the past.”

The K2 Sports headquarters is located at 4201 6th Ave South in Seattle and comprises some 28,000 square feet of finished office space and 188,000 square feet of warehouse space. In addition, almost 90,000 square feet of multi-purpose space is being converted into a new state of the art ski and snowboard prototyping facility and a unique marketing and showroom environment. The facility will house more than 200 employees.