The Timberland Company reported record third quarter net income of $68.6 million and diluted earnings per share of $1.92, compared with third quarter 2003 net income of $53.3 million and diluted EPS of $1.47. Timberland's record results reflected strong global revenue gains and continued benefits from gross margin expansion, which enabled delivery of strong profit growth while supporting increased investment against global brand building initiatives.

Third quarter revenue increased 11.3% to $493.9 million, driven by gains in both U.S. and international markets. U.S. revenues grew 6.0%, reflecting balanced growth from footwear and apparel offerings – and across wholesale (+6.0%) and retail channels (+6.0% on a 1.3% comparable store sales gain). International results (+19.3% or +10.6% in constant dollars) reflected double-digit constant dollar sales growth in Asia and strong constant dollar gains in Europe. Overall revenue growth benefited from favorable foreign exchange rate changes – which added $15.3 million (or 3.4%) to third quarter revenue.

Third quarter results were supported by strong global footwear sales. Global footwear revenues expanded 13.6% to $388.2 million, driven by strong growth in men's and women's casual and kids' categories. Global apparel and accessories revenue grew 3.1% to $101.4 million, as gains in Timberland(R) brand apparel in the U.S. and Asia offset constant dollar declines in Europe and lower levels of Timberland PRO(R) series apparel sales.

Operating profit for the quarter increased 26.9% to $106.0 million, and operating margin rose 2.7 percentage points to 21.5%. Profit gains reflected strong revenue growth and significant gains in gross margin, which benefited from foreign exchange rate changes, lower product-related costs, lower markdowns and favorable business mix. For the quarter, foreign exchange rate changes contributed approximately $11.4 million to operating profit.

— EPS for the quarter expanded 30.6% to $1.92, reflecting profit gains and continued benefits from share repurchases. During the quarter, the Company repurchased 978 thousand shares at a total cost of $54.8 million. For the year to date, Timberland has repurchased 1.3 million shares at a total cost of $75.0 million. The Company currently has 3.3 million shares remaining under its existing share repurchase program.

Timberland ended the quarter with $119.8 million in cash and no debt outstanding. Timberland drove improvement in annual inventory turns and days sales outstanding, supporting an increase in return on capital from 28.1% to 32.5%.

Jeffrey B. Swartz, Timberland's President and Chief Executive Officer, stated, “Timberland delivered record third quarter results, reflecting continued progress in developing the Timberland(R) brand portfolio and continued benefits from our efforts to enhance total system execution. We continue to drive solid growth across major product categories and geographies through a consistent focus on delivering against the enduring equities of the Timberland brand – while adapting our go-to-market strategies to better serve the needs of the broad range of Timberland consumers across the globe. We also continue to benefit from our focus on delivering superior customer service, leveraging a strengthened value chain that is supporting stronger growth and improved operating efficiencies. We are further refining our brand building approach through our Make it Better(TM) marketing campaign which powerfully communicates Timberland's brand essence and values – and deepens our relationship with Timberland consumers.

We are pleased to have delivered strong financial results in the third quarter. We are targeting mid single-digit revenue growth for the balance of this year and believe that we are on track towards delivering strong revenue growth and double-digit profit gains in 2004. Looking ahead to 2005, we intend to drive solid revenue gains and continued strong earnings growth, leveraging strategies focused on capturing the great potential we see for the Timberland brand.”

                        THE TIMBERLAND COMPANY
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
             (Amounts in thousands, except per share data)
                              (Unaudited)

                                  For the              For the
                            Three Months Ended    Nine Months Ended
                            ------------------- ---------------------
                            Oct. 1,   Sept. 26,  Oct. 1,    Sept. 26,
                               2004      2003       2004       2003
                            --------- --------- ----------- ---------
Revenue                     $493,933  $443,960  $1,045,920  $926,690
Cost of goods sold           250,161   241,160     521,200   498,886
                            --------- --------- ----------- ---------

   Gross profit              243,772   202,800     524,720   427,804
                            --------- --------- ----------- ---------

Operating expense
   Selling                   110,761    98,202     287,429   246,203
   General and
    administrative            26,994    21,072      71,436    59,487
                            --------- --------- ----------- ---------
     Total operating
      expense                137,755   119,274     358,865   305,690
                            --------- --------- ----------- ---------

      Operating income       106,017    83,526     165,855   122,114
                            --------- --------- ----------- ---------

Other expense (income)
   Interest expense              147       328         547       767
   Other, net                   (548 )     305      (1,594 )    (226 )
                            --------- --------- ----------- ---------
      Total other expense
       (income)                 (401 )     633      (1,047 )     541
                            --------- --------- ----------- ---------

   Income before income
    taxes                    106,418    82,893     166,902   121,573
                            --------- --------- ----------- ---------
Provision for income taxes    37,778    29,620      59,250    43,158
                            --------- --------- ----------- ---------

      Net income              68,640   $53,273    $107,652   $78,415
                            ========= ========= =========== =========

Earnings per share
   Basic                       $1.96     $1.51       $3.08     $2.20
                            ========= ========= =========== =========
   Diluted                     $1.92     $1.47       $3.00     $2.15
                            ========= ========= =========== =========