Rocky Brands, Inc. has signed a definitive asset purchase agreement with
Kommonwealth, Inc. to acquire certain assets including the Creative
Recreation trademark, a lifestyle footwear brand best known for its
collection of versatile upscale sneakers.

“This acquisition
represents a tremendous opportunity to join a great company with a long
and successfully history. I look forward to working closely with David
and his team to leverage the strengths of our two organizations in order
to take the Creative Recreation brand to the next level.”

The
total purchase price will be approximately $11 million, subject to a
working capital adjustment. The acquisition, which will be funded by
Rocky Brands’ existing cash balances and funds available under its
existing revolving credit facility, is expected to be accretive to
earnings in 2014.

Commenting on the acquisition, Rocky Brands’
President and Chief Executive Officer, David Sharp, said, “We are very
excited to add Creative Recreation to our strong portfolio of brands.
The management team of Creative Recreation led by Founder and President
Robert Nand has done an excellent job identifying and serving a growing
category in the footwear industry. We believe by combining Rocky’s
strong operating platform and access to capital with Creative
Recreation’s design expertise we can strategically expand their business
both domestically and overseas. At the same time, this transaction
provides us with a compelling vehicle to penetrate the casual end of the
market to complement our work, western and outdoor categories.”

Headquartered
in Los Angeles, since 2002, Creative Recreation was first
to create and market versatile footwear that could easily transition
between casual and more formal environments. Creative Recreation’s
collections of upscale sneakers quickly gained strong acceptance and
support from a wide array of key influencers across multiple categories
including music, sports, and acting. Creative Recreation’s ability to
successfully fuse style and versatility across a diversified assortment
of products has created a wide target demographic and a strong
distribution network that spans multiple channels and price points
including Barneys New York, Nordstrom and Journeys.

Nand
commented, “This acquisition represents a tremendous opportunity to join
a great company with a long and successfully history. I look forward to
working closely with David and his team to leverage the strengths of
our two organizations in order to take the Creative Recreation brand to
the next level.”

The acquisition is expected to be completed by
the end of December 2013 subject to customary closing conditions. Robert
W. Baird acted as financial advisor to Rocky Brands. Intrepid
Investment Bankers LLC acted as financial advisor to Kommonwealth, Inc.

Rocky
Brands will discuss the acquisition of Creative Recreation in more
detail on its third quarter 2013 earnings call scheduled for today,
Wednesday, October 30, 2013 at 4:30 pm Eastern Time. The broadcast will
be hosted at http://www.rockybrands.com.

Rocky Brands brands include Georgia Boot, Durango, Lehigh®, and the licensed brand Michelin Footwear.