Quiksilver, Inc. has launched a joint venture in partnership with Sprandi International Ltd. to design, manufacture, market, and distribute Quiksilver and Roxy branded products in Russia. The joint venture will be responsible for establishing a Russian distribution network of company-owned retail stores as well as a sizeable wholesale business that will include licensed retail stores, large key accounts, and small independent retail chains.

This venture, which replaces a former license and distributorship agreement, builds on the Company’s strategy to own and operate its business in key territories. The Company believes that the Russian market is increasingly vibrant and that its brands have a strong, resonant message and considerable untapped potential with Russian consumers. The Company will hold a majority stake in the joint venture, which it expects to further its reputation as one of the leading outdoor lifestyle brands in the world. Sprandi is a leading sports and outdoor lifestyle company in Russia and Eastern Europe specializing in footwear, apparel and accessories.

Bernard Mariette, President of Quiksilver, Inc., commented, “We are very excited about this initiative, which will expand the growth opportunity for our core business. Russia’s young people are increasingly linked to the global youth culture, and the market has excellent potential. The boardriding lifestyle and its ties to music and other aspects of popular western culture have begun to see a massive expansion in Russia. We are confident that, with a strong track record and a clear understanding of the local market, that Sprandi International has proven itself to be the right partner. As we go forward, we believe that a strong business in Russia will serve as a model and, potentially, as an operating platform to grow our business in a variety of other attractive markets throughout Eastern Europe.”

Dinesh Sahani, Founder and CEO of Sprandi International Ltd. Moscow, stated, “We will leverage our Company’s wide experience in successfully planning and building a sport-footwear and apparel brand in Russia to create a strong presence for the Quiksilver and Roxy brands. Our capability for execution in design, manufacturing, and marketing, as well as our specific expertise in the Russian market should ensure our place as a market leader and our financial success in the future. The Russian consumer market is very strong, and we believe that both Quiksilver and Roxy have enormous potential for our young consumers.”