Aaron Behle, Skullcandy, Inc.'s VP, international sales and Nate Morley, the company's VP, global marketing, both notified management of the company on June 20, that they
would not be relocating to the company's headquarters in Park City, Utah in
order to pursue other opportunities.

The news of their exits was included in a Securities & Exchange filing, and was related to the previously announced consolidation of the offices of
Skullcandy.

In the filing, Skullcandy said it deemed their resignation in
connection with the consolidation of the offices to be an effective termination
without cause, entitling both individuals to the severance payments and other
benefits set forth in their offer letters.

To facilitate an orderly transition, Behle has agreed to continue in his
role as VP, international sales until August 9 and Morley
agreed to continue in his role until
Sept. 3, 2013.

As previously disclosed on June 17, 2013, Kyle Wescoat notified the company of
his intention to resign from his position as senior vice president and chief financial officer in order to pursue other opportunities closer to his home in
Southern California. To facilitate an orderly transition, Wescoat has agreed
to continue in his role until Oct. 4.