Business Editors

LAKE FOREST, Calif . These
risks and uncertainties include: unforeseen events that could further
delay completion of the company's ongoing audit process; pending
litigation against the company and its potential outcome; our limited
operating history in developing and manufacturing products from bulk
amorphous alloys; the adoption of our alloys by customers; the
commercial success of our customer's products; our ability to
identify, develop, and commercialize new applications for our alloys;
competition with suppliers of incumbent materials; the development of
new materials that render our alloys obsolete; the ability to manage
our anticipated growth; our limited direct experience in manufacturing
bulk alloy products; scaling-up our manufacturing facilities;
protecting our intellectual property; problems associated with
manufacturing and selling our alloys outside of the United States; and
other risks and uncertainties discussed in filings made with the
Securities and Exchange Commission (including risks described in
subsequent reports on Form 10-Q, Form 10-K, Form 8-K, and other
filings).91 , as compared
to Pro Forma Adjusted diluted earnings per share of $0. Operating
income in the fourth quarter of 2004 was $21.0 million, a 153% increase over the 2003
comparable period , and net income was $38.1 million at December
31, 2003, and inventories at December 31, 2004 increased to $325. Among K2's other branded products are
Miken(R) softball bats, Tubbs(R) and Atlas(R) snowshoes , JT(R) and
Worr Games(R) paintball products, Planet Earth(R) apparel, Hawk(R)
skateboard shoes , and Dana Design(R) backpacks. The Company cautions that the foregoing list of important
factors is not exclusive, any forward-looking statements included in
this news release is made as of the date of this news release, and the
Company does not undertake to update any forward-looking statement .

(j) Free Cash Flow included in this press release is a non-GAAP
financial measure which represents net income plus non-cash income tax
expense. generally
accepted accounting principles.8% in 2005
excluding the impact of these acquisitions.3% of
net sales, as compared to 31.5 0.5 million in the first
quarter of 2004. K2's management believes
the Adjusted financial measures are useful to evaluate K2's
operations. Pacific Standard Time (USA), on Wednesday, April
20, 2005 . K2's diversified mix of products is used primarily in
team and individual sports activities such as fishing, watersports
activities, baseball, softball, alpine skiing, snowboarding, in-line
skating and mountain biking. K2
cautions that the foregoing list of important factors is not
exclusive , any forward-looking statements included in this news
release is made as of the date of this news release, and K2 does not
undertake to update any forward-looking statement. These
capitalized costs are amortized over the term of the related debt.

Use of Adjusted Pro Forma Financial Information
(in thousands, except for per share figures)

To supplement the results presented in accordance with U.

FOOTNOTES AND RELATED INFORMATION FOR TABLE C

Explanation of adjustments:

(a) Amounts represent K2's forecast operating income and net
income for the periods presented in accordance with U.

tyrolia skiers

head. Depending on
market conditions, K2 may repurchase up to $50 million of the
Company's common stock periodically in open market or privately
negotiated transactions in accordance with applicable laws.7 30.9
--------- -------- ------ --------
Total segment data $1,200.0)
------ --------

Income before provision for income taxes $59.

Balance Sheet

K2's balance sheet at December 31, 2004 reflects acquisitions and
the related seasonal working capital requirements of the acquired
businesses.8 million shares and 6.5 million in 2004, and projects total expenses of approximately
$3.
Nonetheless, K2's management believes the Pro Forma Adjusted financial
measures for 2003 and 2004, although not indicative of future
performance, are useful for comparison against K2's operations in the
future.79 and Adjusted diluted earnings per share
in the range of $0.04 to $0.

K2 Inc.07 0. ("Marmot") on June
30, 2004, Volkl Sports Holding AG ("Volkl") and The CT Sports Holding
AG ("Marker") on July 7, 2004 and K2's other acquisitions during 2004.

(b) The increase in debt is caused by the Company 's acquisitions
during 2004, including the seasonal working capital requirements of
these acquired businesses. In comparing this forecast to the 2003
and 2004 results, the 2005 forecast reflects the impact of a full year
of all of K2's acquisitions completed during 2003 and 2004 as compared
to the 2003 and 2004 results, which reflect only the full year pro
forma results of K2's acquisitions of Rawlings, Brass Eagle, Marmot
and Volkl and Marker. generally accepted accounting
principles . The senior
notes were issued on July 1, 2004 in connection with the acquisitions
of Volkl, Marker and Marmot. These adjustments are
provided to enhance an overall understanding of K2's financial
performance and are indicators management uses for planning and
forecasting future periods.08

For fiscal year 2005, GAAP diluted earnings per share forecast
in the range of $0 .3 million, an increase of 15% from $277.2%.2%. The decline was due to a decrease
in sales of metal softball bats, gloves and basketballs partially
offset by an increase in sales of composite softball bats.5
--------- ----------- ----------- -----------
Total segment data $318.3 $277.91, in each case based on assumed fully
diluted shares outstanding of 55.com

About K2 Inc.05 $0.

(c) Increase from March 31, 2004 is primarily attributable to the
acquisitions of Marmot, Volkl and Marker, resulting in the
issuance of an additional 2.05
=================

TABLE B

K2 Inc.
Reconciliation of Forecast GAAP to Forecast Adjusted Results
(in thousands, except for per share amounts)

Forecast Forecast
Three Months Twelve Months
Ended Ended
June 30, 2005 December 31, 2005
------------------ ----------------------
Low High Low High
- ----------------- ----------------------

Net Sales $295,000 $305,000 $1,300,000 $1,350,000
---------

Operating Income
Reconciliation:
----------------
GAAP Operating Income (a) $8,123 $9,322 $89,132 $92,503

Add: Amortization of
acquired intangibles and
amortization of increase in
fair value of inventories
of acquired companies (b) 821 821 4,282 4,282
Non-cash stock
compensation expense (c) 214 214 785 785
------------------ -------- --------------

Adjusted Operating Income $9,158 $10,357 $94,199 $97,570
================== ======================

Net Income Reconciliation:
--------------------------
GAAP Net Income (a) $400 $1,200 $39,250 $41,500

Add: Amortization of
acquired intangibles and
amortization of increase in
fair value of inventories
of acquired companies, net
of taxes (b) 548 548 2,858 2,858
Non-cash stock
compensation expense, net
of taxes (c) 143 143 524 524
Amortization of
capitalized debt costs,
net of taxes (d) 421 421 1,685 1,685
------------------ ----------------------

Adjusted Net Income $1,512 $2,312 $44,317 $46,567
================== ======================

GAAP and Adjusted Basic
Shares Outstanding 46,250 46,250 46,350 46,350

GAAP and Adjusted Diluted
Shares Outstanding 47,612 47,612 55,491 55 ,491

GAAP Basic EPS $0. EBITDA, as
defined above, may not be similar to EBITDA measures used by other
companies and is not a measurement under GAAP. generally
accepted accounting principles.
(b) Adjustment represents the forecast non-cash amortization
expense of acquired intangible assets resulting from K2's acquisition
activities, and the forecast non-cash amortization expense associated
with the increase to fair market value of acquired inventories
resulting from K2's acquisition activities during 2004.

stockli bindings

com

This press release may contain "forward-looking statements" that
involve risks and uncertainties, including statements regarding our
anticipated financial results, as well as our plans, future events,
objectives, expectations, forecasts, and the assumptions on which
those statements are based. This guidance does not account for potential
acquisitions

K2 Board authorizes a share repurchase program of up to $50
million

K2 Inc. In 2004, K2
generated approximately $53 million in free cash flow, defined as net
income plus non-cash taxes before acquisitions and growth in working
capital.

Profit Trends

Gross profit in the fourth quarter of 2004 increased to 34.4 million in the fourth quarter of
2004, an increase of 130.4% growth in technical skate
footwear and apparel and the acquisitions of Ex Officio and Marmot in
the second and third quarters, respectively, of 2004. The increase in
debt as of December 31, 2004 is primarily the result of the Company's
acquisitions during 2004 , including the related seasonal working
capital requirements of the acquired businesses and the issuance of
$200 million of senior notes in July 2004.

Adjusted and Pro Forma Presentation

K2 Inc. As detailed in Table
B, Pro Forma Adjusted diluted earnings per share for 2004 equals $0.

Outlook for 2005

For fiscal year 2005, K2 forecasts GAAP diluted earnings per share
in the range of $0.88
and Adjusted basic earnings per share in the range of $0.fulldisclosure.86 $0.06 $0.

FOOTNOTES AND RELATED INFORMATION FOR TABLE B

Explanation of adjustments:
(in thousands)

(a) The forecast in this column is based on current expectations
and does not purport to be indicative of future results.

(c) Adjustment reflects the additional audited and unaudited
results of operations prior to the acquisition by K2 as if each
significant acquisition completed by K2 during 2003 and 2004 were
included in K2's results for the entire fiscal year. EBITDA , as
defined above, may not be similar to EBITDA measures used by other
companies and is not a measurement under GAAP. Excluding the impact of
net sales from the acquisitions of Ex Officio, Marmot , Volkl, and
Marker, and the previously forecasted sales decline of in-line skates
of $8.3)
----------- -----------
Income before provision for income taxes $3.5 $16.1 million in 2005. See Table B below for a further explanation of the "Adjusted"
and "Pro Forma" presentations. As detailed in Table
B, Pro Forma Adjusted diluted earnings per share for the three months
ended March 31, 2004 equals $0.81 and Adjusted diluted earnings per share
in the range of $0.85 to $0. For the same period, K2
forecasts GAAP basic earnings per share in the range of $0.01 to $0.3 million.
Although K2 is not providing a specific forecast at this time for
the remaining quarters in 2005, from a seasonality standpoint, the
second quarter is anticipated to be the smallest in terms of net sales
and earnings per share, and the third quarter is forecast as the
largest quarter followed by the fourth quarter.

Safe Harbor Statement

This news release includes forward-looking statements.05
Pro Forma Adjusted Basic EPS $0.14 $0.
(g) Pro Forma basic and diluted shares outstanding reflects the
increase to GAAP basic and diluted shares as if the shares of K2
common stock issued in connection with the acquisitions of Volkl,
Marker and Marmot and the public offering of K2 common stock were
issued on January 1, 2004. These adjustments are
provided to enhance an overall understanding of K2's financial
performance and are indicators management uses for planning and
forecasting future periods.

stockli kuu

liquidmetal . The combination of a super
alloy's performance coupled with unique processing advantages
positions Liquidmetal alloys for what the company believes will be The
Third Revolution(TM) in material science .
(NYSE:KTO):

Q4 2004 sales of $339 million, and 2004 fiscal year sales of
$1.S .5% of
net sales, as compared to 29. Gross profit as a percentage of net sales in the 2004 fourth
quarter benefited from higher gross margins in the Action Sports and
Apparel and Footwear segments .

Fourth Quarter Segment Review

Due to the acquisitions of Ex Officio and Marmot in the 2004
second and third quarters, respectively, K2 formed an Apparel and
Footwear segment in the 2004 third quarter that also includes Earth
Products.97 $0.88
GAAP Diluted EPS $0.04 $0.91

See accompanying footnotes and related information for Table C below. This forecast
does not take into account the potential impact of any mergers,
acquisitions or other business combinations that may be completed
after the date of this release.

(d) Adjustment represents the non-cash amortization expense
associated with acquired intangible assets and the non -cash
amortization expense associated with the increase to fair market value
of acquired inventories , resulting from K2's acquisition activities
during 2003 and 2004. These adjustments are not in accordance with, or an
alternative for, U.

K2 also included an adjustment to reflect additional interest
expense as if the $200,000 in senior notes K2 issued in connection
with the acquisitions of Volkl , Marker and Marmot were issued on
January 1, 2003, and adjustments to reflect the issuance of additional
shares of common stock for the acquisitions and K2's July 2004 equity
offering as if they were completed on January 1, 2003.03 to $0. It is also important to
reiterate that quarter-to-quarter comparisons are not useful because
the 2005 first quarter results are not directly comparable to last
year due to the acquisitions of Volkl, Marker and Marmot completed
mid-year 2004, due to the fact that these seasonal businesses incur
losses in the first half of the year.2% in the comparable 2004 period.6)
Apparel and Footwear 32.3 million as compared to $263.4 million shares,
respectively , to 46.1 million, for a ratio of net debt to EBITDA of 3.
See Table B below for a reconciliation of U.

Sarbanes-Oxley Act of 2002

Section 404 of the Sarbanes-Oxley Act of 2002 requires K2,
commencing with its 2004 Annual Report, to provide management's annual
report on its assessment of the effectiveness of its internal control
over financial reporting and, in connection with such assessment, an
attestation report from its independent registered public accountant,
Ernst + Young LLP.00,
in each case based on assumed basic shares outstanding of 46. These statements are forward -looking, and actual results
may differ materially.
K2 also included an adjustment to reflect additional interest
expense as if the $200,000 in senior notes K2 issued in connection
with the acquisitions of Volkl, Marker and Marmot were issued on
January 1, 2004, and adjustments to reflect the issuance of additional
shares of common stock for the acquisitions and K2's July 2004 equity
offering as if they were completed on January 1, 2004.

freeriding moldable

Bulk Liquidmetal alloys can also be
molded into precision net-shaped parts similar to plastics, resulting
in intricate and sophisticated engineered designs .----K2 Inc. Details on earnings per share
calculations are provided in Table A below."

See Table B below for a reconciliation of U.3% compared to 2.8% from the comparable quarter in
2003.

Sales increases were driven by growth in children's flotation
devices and the addition of All-Star (R) rods and ATV accessory product
lines during 2004.4 116.1)
Action Sports 502.8 million.97 0. (renamed K2 Licensing + Promotions,
"K2 L+P") on January 23, 2004 , Marmot Mountain Ltd.8 million and 1.88
Pro Forma Adjusted
Basic EPS $0. These adjustments are not
in accordance with, or an alternative for, GAAP.
These capitalized costs are amortized over the term of the related
debt.4
million in the prior year, as a result of material seasonal
transactions completed in 2004 diluted earnings per share were $0. At March 31, 2005, cash and accounts receivable increased
to $350.8 million shares, 1.03 $0.03 $0.05 $0.
Management uses Free Cash Flow in evaluating the overall performance
of K2's business operations.

icer silvretta

These statements
involve risks and uncertainties that could cause actual outcomes and
results to differ materially from the anticipated outcomes or result,
and undue reliance should not be placed on these statements .
Richard Heckmann, Chairman and Chief Executive Officer, said,
"2004 was an excellent year for K2 as evidenced by organic sales
growth of approximately 9%, excluding the previously forecast decline
in in-line skate sales, and dramatic growth in margins and
profitability. The
Company will use its available cash resources to fund the stock
repurchase program.9 million,
excluding the net sales from businesses acquired by K2 during 2004 and
the incremental net sales from the Brass Eagle acquisition which
closed at the end of the 2003 fourth quarter. Gross
profit for the twelve months ended December 31, 2004 increased to
33.6% for the 2003 comparable
period.1% of net sales in the fourth quarter of 2004 as compared to 27.1% over the 2003 fourth quarter.
Although K2 is not providing a specific forecast at this time for
the remaining quarters in 2005, from a seasonality standpoint the
second quarter is anticipated to be the smallest in terms of sales and
earnings per share, and the third quarter is forecast as the largest
quarter followed by the fourth quarter .

Table B provides a reconciliation of 2003, 2004 and forecast 2005
GAAP net sales to Pro Forma net sales, 2003, 2004 and forecast 2005
GAAP operating income to Pro Forma Adjusted operating income , 2003,
2004 and forecast 2005 GAAP net income to Pro Forma Adjusted net
income, and a calculation of 2003, 2004 and forecast 2005 EBITDA. or its subsidiaries in
the United States or other countries .

Use of Adjusted Financial Information

To supplement the actual and forecast results presented above in
accordance with GAAP for the applicable periods, K2 uses Adjusted
measures of operating income, net income and earnings per share, which
are adjusted from the GAAP-based actual and forecast results to
exclude certain non-cash costs and expenses.

See "Use of Adjusted Financial Information " in Footnotes and
Related Information for Table B for the 2005 forecast financial
information .6
million, an increase of 2. Sales increases were driven by growth in children's
flotation devices , water-ski vests, reels, kits and combos and fish
line and the addition of All-Star(R) rods and ATV accessory product
lines during the second quarter of 2004.

Apparel and Footwear

Earth Products, Ex Officio and Marmot had net sales of $32.2) (3.27
========= =========

Shares:
Basic 46,177 34,353
Diluted 47,502 43 ,099

K2 INC. The senior notes were issued on July 1, 2004 in connection with
the acquisitions of Volkl, Marker and Marmot.

silvretta wintersports

About Liquidmetal Technologies

Liquidmetal Technologies, Inc.
Bulk Liquidmetal alloys are two to three times stronger than commonly
used titanium alloys, harder than tool steel, and relatively
non-corrosive and wear resistant . (NYSE:KTO) today reported net sales for the fourth quarter
ended December 31, 2004 of $338.
"For our 2005 guidance, comparability with the first and second
quarters of 2004 is complicated by two key factors.

Review of 2004 Fourth Quarter and Twelve Month Sales and Profit
Results

Comparable Sales Trends

K2's net sales in the fourth quarter of 2004 were $210.

Apparel and Footwear

Earth Products, Ex Officio and Marmot had sales of $43.9
========= ======== ------ --------

Corporate expenses, net (13. At December 31, 2004, cash and accounts receivables
increased to $395.4
million shares, respectively, to 46.4 million shares outstanding at
December 31, 2003. For those who are not available for the
live broadcast, the call will be archived on www.
Reconciliation of GAAP to Adjusted Results
(in thousands, except for per share amounts)

Forecast Forecast
Three Months Ended Twelve Months Ended
March 31, 2005 December 31, 2005
-------------- -----------------
Low High Low High
------------------ ------------------- ---

Net Sales $295,000 $305,000 $1,300,000 $1,350,000
------------ ----------------

Operating Income
Reconciliation:
----------------------------
GAAP Operating Income (a) $8,300 $9,800 $87,100 $90,520

Add: Amortization of
acquired intangibles and
amortization of increase
in fair value of
inventories of
acquired companies (b) 746 746 3,327 3,327
Non-cash stock
compensation
expense (c) 125 125 3,500 3,500
------------------ ----------------------

Adjusted Operating Income $9,171 $10,671 $93,927 $97,347
================== ======================

Net Income Reconciliation:
----------------------------
GAAP Net Income (a) $600 $1,600 $38,350 $40,650

Add: Amortization of
acquired intangibles and
amortization of increase
in fair value of
inventories of
acquired companies (b) 498 498 2,222 2,222
Non-cash stock
compensation
expense (c) 83 83 2,338 2,338
Amortization of
capitalized debt
costs (d) 514 514 2,056 2,056
------------------ ----------------------

Adjusted Net Income $1,695 $2,695 $44,966 $47,266
================== ======================

GAAP and Adjusted Basic
Shares Outstanding 46,223 46,223 46,379 46,379

GAAP and Adjusted Diluted
Shares Outstanding 47,835 47,835 55,698 55,698

GAAP Basic EPS $0.01 $0.77 to $0.
Richard Heckmann, Chairman and Chief Executive Officer, said, "Our
results in the first quarter of 2005 exceeded our original guidance
due to strength in both our Marine and Outdoor and Apparel and
Footwear platforms. Off -setting these gains were softness in in-line skates and
paintball which we had previously forecast . The positive results of this
quarter reflect our commitment to building a highly diversified
revenue base capable of absorbing normal market cycles.1 million from the Ex
Officio, Marmot, Volkl and Marker businesses acquired by K2 after the
2004 first quarter. Selling, general and administrative expenses were 29. Higher selling, general and administrative expenses
in the quarter are principally attributable to the acquisitions of
Volkl, Marker and Marmot in 2004, as these product lines have higher
levels of fixed expenses as compared to K2's other business lines, and
are seasonally slow from a sales standpoint in the first and second
quarters.8 $16.2 million in the first
quarter of 2005 , as compared to $6. Nonetheless, K2's management
believes the Pro Forma Adjusted financial measures for 2004 and 2005,
although not indicative of future performance, are useful for
comparison against K2's operations in the future.01 to $0.
The forecast statements in this press release are based on current
expectations. These statements do not include the potential
impact of any mergers, acquisitions or other business combinations
that may be completed after the date of this release.com. or its subsidiaries in
the United States or other countries.
STATEMENTS OF INCOME
(in thousands, except for per share figures)

FIRST QUARTER
ended March 31
--------------------
(unaudited)

2005 2004
--------- ---------

Net sales $318,291 $277,364
Cost of products sold 215,472 190,731
--------- -- -------
Gross profit 102,819 86,633

Selling expenses 58,715 42,047
General and administrative expenses 34,093 25,064
--------- ---------
Operating income 10,011 19,522

Interest expense 7,253 3,302
Other income, net (721) (53)
--------- ---------
Income before provision for income taxes 3,479 16,273

Provision for income taxes 1,155 5,533
--- ------ ---------

Net income $2,324 $10,740
========= =========

Basic earnings per share:
Net income 0.8 million and 1.
SELECTED CASH FLOWS INFORMATION
(thousands)

THREE MONTHS
ENDED MARCH 31
-----------------
2005 2004
-----------------
(unaudited )
Operating Activities
Net Income $2,324 $10,740
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 8,406 6,073
Deferred taxes 341 4,489
Changes in noncash current assets and current
liabilities 7,097 (14,825)
-------- --------
Net cash provided by operating activities 18 ,168 6,477

Investing Activities
Property, plant + equipment expenditures, net (6 ,535) (6,509)
Purchases of businesses, net of cash acquired (152) 1,780
Other items, net 500 (162)
-------- --------
Net cash used in investing activities (6,187) (4,891)

Financing Activities
Net borrowings (payments) under long-term debt 24,136 (1,732)
Net decrease in short-term bank loans (22,022) (5,197)
Exercise of stock options 140 3,873
-------- --------
Net cash provided by (used in) financing activities 2,254 (3,056 )
-------- --------

Net increase (decrease ) in cash and cash equivalents 14,235 (1,470)

Cash and cash equivalents at beginning of year 25,633 21,256
-------- --------
Cash and cash equivalents at end of period $39,868 $19,786
======== ========

TABLE A

K2 Inc.
Pro Forma adjustments include the unaudited financial results
giving effect to the acquisition by K2 of Volkl, Marker and Marmot as
if the acquisitions were completed on January 1, 2004, the first day
of the first period for which pro forma financial information is
presented.
These Adjusted financial measures are not to be considered in
isolation from, or as a substitute for, financial results prepared in
accordance with GAAP.

volkl silvretta

The ultimate energy return of the Liquidmetal alloy is
incorporated within a Liquidmetal(R) jacket that covers the entire
length of the ski core.

, http://www. Liquidmetal
Technologies is the first company to produce amorphous alloys in
commercially viable bulk form, enabling significant improvements in
products across a wide array of industries .

Business Editors

CARLSBAD, Calif.18, and 2004 fiscal
year diluted earnings per share of $0.8 million, which reflects a sales
increase of 8.6% as compared to 26.4% over the 2003
period.net
and www.com

About K2 Inc. is a premier, branded consumer products company with a
portfolio of leading brands including Shakespeare(R), Pflueger(R) and
Stearns(R) in the Marine and Outdoor segment; Rawlings(R), Worth(R),
and K2 Licensing + Promotions(R) in the Team Sports segment; K2(R),
Volkl(R), Marker(R), Ride(R) and Brass Eagle(R) in the Action Sports
segment; and, Adio(R), Marmot(R) and Ex Officio(R) in the Footwear and
Apparel segment.

(c) Increase from December 31, 2003 is primarily attributable to
the acquisitions of K2 L+P, Marmot, Volkl and Marker, resulting in the
issuance of an additional 1.97
======= ========

Period ended December 31, 2004 - diluted earnings per
share (d)/(b) $0.70 $0.S.

(f) Adjustment represents non -cash amortization expense of
capitalized debt costs associated with K2's revolving credit facility ,
convertible subordinated debentures and senior notes. We believe that EBITDA
provides useful information to investors about the Company's
performance because it eliminates the effects of period -to-period
changes in costs associated with capital investments and income from
interest on the Company's cash and marketable securities that are not
directly attributable to the underlying performance of the Company's
business operations. Management uses Free Cash Flow in evaluating the overall
performance of the Company's business operations.S.
(NYSE:KTO):

Q1 2005 GAAP diluted earnings per share of $0.

Marine and Outdoor

Shakespeare(R) fishing tackle and monofilament, and Stearns (R)
marine and outdoor products, generated net sales of $112.4 $98.3
Team Sports 92.9 11.0
Action Sports 80.4 13.

Outlook for 2005

For fiscal year 2005, K2 forecasts GAAP diluted earnings per share
in the range of $0.S. K2 will continue to exclude such
items in its Adjusted results and Adjusted comparable period results.

rossignol snowflex

For more information, please visit http://www.75 to $0. The increase was due to 58. subsequent to December 31 , 2003. is providing actual results and forecast guidance on a
financial basis in accordance with GAAP, and on an adjusted basis
("Adjusted") that excludes the impact of certain non-cash expenses
including: amortization of purchased intangibles resulting from K2's
acquisition activities in 2003 and 2004; amortization expense
associated with the increase in fair market values of the inventories
of acquired companies; amortization of capitalized debt costs incurred
in connection with K2's acquisition activities during 2003 and 2004;
and non-cash stock-based compensation expense.01 to $0. The
complete audited financial statements of K2 for the fiscal year ended
December 31, 2004 will be included in K2 Inc.18 $0. 31,
2004 2004
------- --------

Period ended December 31, 2004 - basic shares (a) 46,077 40,285

Assumed conversion of subordinated convertible
debentures 7,804 7,804

Dilutive impact of stock options and warrants 1,561 1,256
------- --------

Period ended December 31, 2004 - diluted shares (b) 55,442 49,345
======= ========

Net income for the period ended December 31, 2004 (c) $8,825 $38,941

Add: Interest component on assumed conversion of
subordinated convertible debentures, net of taxes 904 3,616

------- --------

Net income, adjusted for the period ended December
31, 2004 (d) $9,729 $42,557
======= ========

Period ended December 31 , 2004 - basic earnings per
share (c)/(a) $0.
Reconciliation of GAAP Actual and Forecast Results to Pro Forma
Adjusted Results
(in thousands, except for per share data)
(unaudited)
Forecast
Twelve Twelve Twelve
Months Months Months
Ended Ended Ended
December December December
31, 2003 31, 2004 31, 2005 (a)
----------- ----------- -----------
Low High
Net Sales
Reconciliation:
--------- --------------
GAAP Net Sales (b) $718,539 $1,200,727 $1,300,000 $1,350,000

Add: Net sales (for the
periods prior to the
date of acquisition)
relating to
significant
acquisitions made by K2
during 2003 and 2004 (c) 386,012 58,050 - -
----------- ----------- ----------- -----------

Pro Forma Net Sales $1,104,551 $1,258,777 $1,300,000 $1,350,000
=========== =========== =========== ===========

Operating Income
Reconciliation:
-----------------------

GAAP Operating Income (b) $32,052 $81,020 $87,100 $90,520

Add: Operating income
(for the periods prior
to the date of
acquisition) relating
to significant
acquisitions made by K2
during 2003 and 2004 (c) 29,898 (15,433) - -
Amortization of
acquired
intangibles and
amortization of
increase in
fair value
of inventories
of acquired
companies (d) 3,012 8,384 3,327 3,327
Non-cash stock
compensation
expense (e) - 224 3,500 3,500
----------- ------- ---- ----------- -----------

Pro Forma Adjusted
Operating Income $64,962 $74,195 $93,927 $97,347
=========== =========== =========== ===========

Net Income
Reconciliation:
-----------------------

GAAP Net Income (b) $11,424 $38,941 $38,350 $40,650

Add: Net income (for
the periods prior to
the date of
acquisition) relating
to significant
acquisitions made by K2
during 2003 and 2004 (c) 13,704 (11,972) - -
Amortization of
acquired
intangibles and
amortization of
increase in
fair value
of
inventories
of acquired
companies (d) 1,958 5,457 2,222 2,222
Non-cash stock
compensation
expense (e ) - 146 2,338 2,338
Amortization
of
capitalized
debt costs (f) 1,058 1,997 2,056 2,056
Less: Additional
interest expense from
issuance of senior
notes in July 2004 (g) (5,424) (2,716) - -
----------- ----------- ----------- -----------

Pro Forma Adjusted Net
Income $22,720 $31,853 $44,966 $47,266
=========== =========== =========== ===========

GAAP Basic Shares
Outstanding 24,958 40,285 46,379 46,379
Pro Forma Basic Shares
Outstanding (h) 42,998 45,816 46,379 46,379

GAAP Diluted Shares
Outstanding 28,750 49,345 55,698 55,698
Pro Forma Diluted
Shares Outstanding (h) 48,750 54,876 55,698 55,698

GAAP Basic EPS $0.01 $0.97 $1. Free Cash Flow, as defined above, may not be similar to Free
Cash Flow measures used by other companies and is not a measurement
under GAAP.S.01 to $0. Adio(R) skate shoes and apparel and Ex Officio's
Buzz-Off(TM) apparel brand also had double digit sales growth in the
quarter.4 million , which reflects a sales decline of 0.

First Quarter Segment Review

Due to the acquisitions of Ex Officio and Marmot in the 2004
second and third quarters, respectively, K2 formed an Apparel and
Footwear segment in the 2004 third quarter that also includes Earth
Products.6 million in the 2005 first quarter as compared to $94.
Primarily as the result of the acquisitions of Marmot , Volkl and
Marker in 2004 and K2's offering of common stock in the 2004 third
quarter, K2 increased its number of shares of common stock outstanding
by 2.96 to $1.
Table C provides a reconciliation of GAAP operating income to
Adjusted operating income and GAAP net income to Adjusted net income
for the forecast three months ended June 30, 2005 and forecast twelve
months ended December 31 , 2005.
Adio(R), Atlas(R), Brass Eagle(R), Dana Designs(R), Ex Officio(R),
Hawk(R) skateboard shoes , JT(R), K2(R), Marker(R), Marmot(R),
Pflueger(R), Planet Earth(R), Rawlings(R), Ride(R), Shakespeare (R),
Stearns(R), Tubbs(R), Volkl(R), Worth(R) and Worr Games(R), are
trademarks or registered trademarks of K2 Inc.05 $0.91

See accompanying footnotes and related information for Table C
below .
(e) Adjustment represents non-cash amortization expense of
capitalized debt costs associated with K2's revolving credit facility,
convertible subordinated debentures and senior notes. These adjustments are provided to enhance an
overall understanding of K2's financial performance for the three
months ended March 31, 2004 and 2005 and are indicators management
uses for planning and forecasting future periods.

crosscountry moldable

Secondly, we are incurring non-cash
amortization charges related to recent acquisitions, non-cash stock
compensation expense, and significant expenses associated with
compliance under Section 404 of the Sarbanes-Oxley Act.

Marine and Outdoor

Shakespeare fishing tackle and monofilament, and Stearns marine
and outdoor products, generated sales of $62.4 $44.
K2 Inc.04 to $0.

Adio(R), Atlas(R), Brass Eagle(R), Dana Designs(R), Ex Officio(R),
Hawk(R) skateboard shoes, JT(R), K2(R), Marker(R), Marmot(R),
Pflueger(R), Planet Earth(R), Rawlings(R), Ride(R), Shakespeare (R),
Stearns(R), Tubbs(R), Volkl(R), Worth(R) and Worr Games(R), are
trademarks or registered trademarks of K2 Inc.

(g) Adjustment reflects the increase in interest expense for the
period as if the $200,000 in senior notes were issued on January 1,
2003 and outstanding for the entire twelve month periods.05 and net sales
of $318 million, exceeding previous guidance

Q1 2005 Adjusted diluted earnings per share of $0.05
as compared to $0.1 million from the Ex
Officio, Marmot, Volkl and Marker businesses acquired by K2 after the
2004 first quarter.

Balance Sheet

K2 's balance sheet at March 31, 2005 reflects acquisitions and the
related seasonal working capital requirements of the acquired
businesses. For the same period, K2
forecasts GAAP basic earnings per share in the range of $0.

K2 Inc.31 $0.S. These adjustments are not in accordance with , or an
alternative for GAAP. These adjustments are not
in accordance with, or an alternative for , GAAP.
(d) Adjustment represents the forecast non-cash amortization
expense of capitalized debt costs associated with K2's revolving
credit facility, convertible subordinated debentures and senior notes.

skiboarding polarized

Amorphous alloys are unique materials that are
characterized by a random atomic structure , in contrast to the
crystalline atomic structure possessed by ordinary metals and alloys.86, in line with
previous guidance, an increase of 157% and 95%, respectively

For fiscal year 2005, GAAP diluted earnings per share forecast
in the range of $0.18, a 157% increase over the fourth quarter of 2003.

Team Sports

Rawlings, Worth, and K2 Licensing + Promotions had total sales of
$54.

(b) Results for periods after the divestiture in May 2003 and the
twelve months ended December 31, 2004 do not include the sales or
operating income of the composite utility and light pole product
lines.1 million in 2005. K2 plans to do a live broadcast of the conference call over the
Internet.19 0.46
=========== =========== =========== =========

Diluted earnings per
share:
Net income $0.8
million shares , respectively, of common stock of K2. 31, Dec.46 $0.53 $0. For purposes of
this calculation K2's significant acquisitions during 2003 and 2004
consisted of: Rawlings acquired by K2 on March 26, 2003; Brass Eagle
acquired on December 8, 2003; Marmot acquired on June 30, 2004; and
Volkl and Marker acquired on July 7, 2004.

(e) Adjustment represents the forecast non-cash compensation
expense resulting stock options and restricted stock awards.

Use of Adjusted Pro Forma Financial Information
(in thousands, except for per share figures)

To supplement the results presented in accordance with generally
accepted accounting principles (GAAP), for the twelve months ended
December 31, 2004, K2 also used Pro Forma Adjusted measures of
operating income, net income and earnings per share, which are
adjusted from the GAAP-based results to include the results of
operations of significant acquisitions and related costs prior to
their date of acquisition and to exclude certain non-cash costs and
expenses. Even though such items have recurred in the
past and may recur in future periods, they are driven by events such
as acquisitions and new accounting pronouncements that are not
directly related to K2's ongoing core business operations.27 for the first quarter of 2004. Operating income
in the first quarter of 2005 was $10.0% in the comparable 2004
period.

Earth Products was formerly included in the Action Sports
segment.5 million in the prior year period ,
and the net increase in cash in the first quarter of 2005 was $14.90
and Adjusted basic earnings per share in the range of $0.
Reconciliation of GAAP Actual and Forecast Results to Pro Forma
Adjusted Results
(in thousands, except for per share amounts)
(unaudited)

Three Three
Months Months
Ended Ended
March 31, March 31,
2004 2005
-------------------

Net Sales Reconciliation:
-------------------------
GAAP Net Sales (a) $277,364 $318,291

Add: Net sales (for the periods prior to the date
of acquisition) relating to significant
acquisitions made by K2 during 2004 (b) 39,028 -
--------- ------ ---

Pro Forma Net Sales $316,392 $318,291
========= =========

Operating Income Reconciliation:
-- ------------------------------

GAAP Operating Income (a) $19,522 $10,011

Add: Operating loss (for the periods prior to the
date of acquisition) relating significant
acquisitions made by K2 during 2004 (b) (4,887) -
Amortization of acquired intangibles and
amortization of increase in fair value of
inventories of acquired companies (c) 2,072 1,735
Non-cash stock compensation expense (d) - 125
--------- ---------

Pro Forma Adjusted Operating Income $16,707 $11,871
========= =========

Net Income Reconciliation:
--------------------------

GAAP Net Income (a) $10,740 $2,324

Add: Net loss (for the periods prior to the date
of acquisition) relating to significant
acquisitions made by K2 during 2004 (b) (4,464) -
Amortization of acquired intangibles and
amortization of increase in fair value of
inventories of acquired companies, net of taxes
(C) 1,368 1,158
Non-cash stock compensation expense, net of
taxes (d) - 83
Amortization of capitalized debt costs, net of
taxes (e) 399 417
Less: Additional interest expense from issuance of
senior notes in July 2004 (f) (1,377) -
--------- ---------

Pro Forma Adjusted Net Income $6,666 $3,982
========= =========

GAAP Basic Shares Outstanding 34,353 46,177
Pro Forma Basic Shares Outstanding (g) 45,414 46,177

GAAP Diluted Shares Outstanding 43,099 47,502
Pro Forma Diluted Shares Outstanding (g) 54,160 47,502

GAAP Basic EPS $0.00
Adjusted Diluted EPS $0. We believe that EBITDA
provides useful information to investors about K2's performance
because it eliminates the effects of period-to-period changes in costs
associated with capital investments that are not directly attributable
to the underlying performance of K2's business operations. Free
Cash Flow, as defined above, may not be similar to free cash flow
measures used by other companies and is not a measurement under GAAP.
(c) Adjustment represents the forecast non-cash compensation
expense resulting from restricted stock awards.
These capitalized costs are amortized over the term of the related
debt.

nordica wintersports

----Liquidmetal(R)
Technologies Inc.2 billion , an increase of 75% and 67%, respectively

Q4 2004 diluted earnings per share of $0.8% excluding the impact of acquisitions, for the 2004
fourth quarter.3% from the 2003
period.2

Debt extinguishment costs - (6.6 million and $0. In order to comply with the requirements of Section
404, K2 estimates that it incurred total expenses of approximately
$2.
For the first quarter of 2005, K2 forecasts GAAP diluted earnings
per share in the range of $0.2 million. Pacific Standard Time (USA), on Tuesday, March 1,
2005.

K2 INC.75 $0.06 $0. Management uses EBITDA in evaluating the overall
performance of the Company's business operations. These
adjustments are provided to enhance an overall understanding of K2's
financial performance for the twelve months ended December 31, 2004
and are indicators management uses for planning and forecasting future
periods.

(b) Adjustment represents the forecast non-cash amortization
expense of acquired intangible assets resulting from K2's acquisition
activities during 2003 and 2004, and the forecast non-cash
amortization expense associated with the increase to fair market value
of acquired inventories resulting from K2's acquisition activities
during 2004.

Business Editors

CARLSBAD, Calif.7 million for the
first quarter of 2004.
The segment information presented below is for the three months
ended March 31:

Sales to Unaffiliated
Customers Operating Profit (Loss)
--------------------- -----------------------
2005 2004(a) 2005 2004(a)
--------- --- -------- ----------- -----------
(in millions)
Marine and Outdoor $112.4 75.2
million as compared to a net reduction of $1.05 0.27 $0.03 $0. For purposes of
this calculation K2's significant acquisitions during 2004 consisted
of: Marmot acquired on June 30, 2004; and Volkl and Marker acquired on
July 7, 2004.
(c) Adjustment represents the non-cash amortization expense
associated with acquired intangible assets and the non -cash
amortization expense associated with the increase to fair market value
of acquired inventories , resulting from K2's acquisition activities. Even though such items have
recurred in the past and may recur in future periods, they are driven
by events such as acquisitions that are not directly related to K2's
ongoing core business operations.

bindings groomer

(OTC:LQMT) announced today that the winter sports
division of Head NV (NYSE:HED) has added a Liquidmetal line of skis to
be offered for the 2005 /2006 ski season.
HEAD holds leading positions in all of its product markets and its
products are endorsed by some of the world's top athletes including
Andre Agassi, Svetlana Kuznetsova, Anastasia Myskina, Marat Safin,
Juan Carlos Ferrero, Klaus Kroll and Maria Riesch. Our acquisitions of Volkl and Marker have significantly
strengthened our global winter products business, and Marmot and Ex
Officio are the cornerstones of our technical apparel platform. Operating income improved to 6.0 million shares, 2.8 million shares, 1.7 million. K2 cautions
that these statements are qualified by important factors that could
cause actual results to differ materially from those in the
forward -looking statements, including but not limited to K2's ability
to successfully execute its acquisition plans and growth strategy,
integration of acquired businesses, weather conditions, consumer
spending , continued success of manufacturing in China, global economic
conditions, product demand, financial market performance, and other
risks described in the Company's most recent annual report on Form
10-K/A, subsequent quarterly reports on Form 10-Q, and current reports
on Form 8-K, each as filed with the Securities and Exchange
Commission.
SELECTED BALANCE SHEET INFORMATION
(in thousands)

As of December 31
2004 2003
----------- ---------
(unaudited) (audited)

Cash $25 ,633 $21,256
Accounts receivable, net 369,914 (a) 224,818
Inventories , net 325,125 (a) 237,152

Accounts payable 103,158 77,304
Total debt 415,911 (b) 216,138

Shareholders' equity $682,865 (c) $434,040

(a) Increase from December 31, 2003 is attributable to the
acquisitions of Fotoball USA, Inc. Reconciliation of Diluted Shares and Earnings Per Share
(in thousands, except for per share figures)

Twelve
Quarter months
ended ended
Dec.02

GAAP Diluted EPS $0.79

Adjusted Basic EPS $0."

Review of 2005 First Quarter Sales and Profit Results

Comparable Sales Trends

K2's net sales in the first quarter of 2005 were $275.2% of net
sales in the first quarter of 2005 as compared to 24.0 $15.3
=========== ===========

(a) Results for the three months ended March 31, 2004 do not
include the results of Ex Officio, Marmot, Volkl and Marker or K2's
other acquisitions completed after the 2004 first quarter since these
companies were acquired by K2 Inc .2 million from $215.

Adjusted and Pro Forma Presentation

K2 Inc.

Investor Conference Call

K2's regular quarterly earnings conference call is scheduled to
begin at 1:30 p. ("Marmot ") on June 30,
2004, Volkl Sports Holding AG ("Volkl") and The CT Sports
Holding AG ("Marker") on July 7, 2004 and K2's other completed
acquisitions after the 2004 first quarter.4 million shares of common stock.
(i) Free Cash Flow included in this press release is a non-GAAP
financial measure which represents net income plus non-cash income tax
expense, amortization of acquired intangibles and amortization of the
increase in the fair value of inventories of acquired companies.

Ski and apparel equipment listing

snowflex wintersports

HEAD sells
products under the HEAD (tennis, squash and racquetball racquets,
alpine skis and ski boots, snowboards, bindings and boots), Penn
(tennis balls and racquetball balls), Tyrolia (ski bindings), and
Mares/Dacor (diving equipment) brands.
Net sales for the twelve month period ended December 31, 2004 were
$1. generally accepted
accounting principles ("GAAP ") to earnings before interest, taxes,
depreciation and amortization ("EBITDA") and free cash flow ("Free
Cash Flow").8% in the comparable 2003 period.3% of net sales, as compared to 30.0 0.
The Company's total debt increased to $415.06,
in each case based on assumed shares outstanding of 46 .0 million shares, 2.

Pro Forma adjustments include the audited and unaudited financial
results giving effect to the acquisition by K2 of Rawlings, Brass
Eagle and Marmot as if the acquisitions were completed on January 1,
2003 and Volkl, Marker as if the acquisitions were completed on April
1, 2003, the first day of the first period for which pro forma
financial information is presented . Adjustments to include the results of operations
of other additional acquisitions completed by K2 during 2003 and 2004
have not been made because the effects of these additional
acquisitions were not material on either an individual basis or in the
aggregate to K2's consolidated results of operations .

(d) Adjustment represents the forecast non-cash amortization
expense of capitalized debt costs associated with K2's revolving
credit facility, convertible subordinated debentures and senior notes.6
million, an increase of 2.
K2's net sales in the first quarter of 2005 were $275.4 million in
the first quarter of 2005, an increase of 14% from the comparable
quarter in 2004.2 million at March 31, 2004.8 million shares and 6.
At the end of the of the first quarter of 2005, debt, net of cash,
was $378.5 million. K2 cautions
that these statements are qualified by important factors that could
cause actual results to differ materially from those in the
forward-looking statements , including but not limited to K2's ability
to successfully execute its acquisition plans and growth strategy,
integration of acquired businesses, weather conditions, consumer
spending, continued success of manufacturing in China, global economic
conditions, product demand, financial market performance , and other
risks described in K2's most recent annual report on Form 10-K,
previous quarterly reports on Form 10-Q, and current reports on Form
8-K, each as filed with the Securities and Exchange Commission. The adjustments to reflect the financial results of Volkl,
Marker and Marmot do not purport to be indicative of what would have
occurred had the acquisitions been made as of those dates, or of
results which may occur in the future.

See "Use of Adjusted Financial Information" in Footnotes and
Related Information for Table B for the 2005 forecast financial
information.

groomer kuu

2 billion, an increase of 67% over the 2003 comparable period, and
diluted earnings per share of $0. Selling, general and administrative expenses were
28. Growth was primarily driven by the acquisition of K2 Licensing
+ Promotions in January 2004.

Action Sports

Sales of skis, snowboards, in-line skates , bikes, snowshoes and
paintball products totaled $178.9 $324.3 4. These statements are forward -looking, and actual results
may differ materially.fulldisclosure.

K2 INC.86 $0.02
Adjusted Diluted EPS $0.

(i) Earnings before interest income, taxes, depreciation, and
amortization ("EBITDA") included in this press release is a non -GAAP
financial measure which represents net income excluding the effects of
interest, income taxes , depreciation, and amortization. Excluding the impact of
net sales from the acquisitions of Ex Officio , Marmot, Volkl, and
Marker, and the previously forecasted sales decline of in-line skates
of $8.2 million,
excluding net sales in the aggregate of $45. K2's net sales in the first quarter of 2004 were
$277.4
million in the first quarter of 2005, an increase of 7% over the 2004
first quarter.0 million at March 31, 2005 from
$209.2 million and the twelve month trailing EBITDA (as defined
below) was $106.
K2 Inc.
On June 30, 2004, K2 acquired Marmot, a premium manufacturer of
technical performance apparel, and on July 7, 2004 acquired Volkl and
Marker, premium manufacturers of alpine skis, bindings and snowboards.03 to $0.

K2 INC.87 $0.
(d) Adjustment represents the non-cash compensation expense
resulting from restricted stock awards.
(f) Adjustment reflects the increase in interest expense for the
period as if the $200 ,000 in senior notes were issued on January 1,
2004 and outstanding for the entire three month period ended March 31,
2004.

bindings snowflex

com, is the
leading developer, manufacturer, and marketer of products made from
amorphous alloys.7)

Interest expense (21.8 million ,
respectively.5 million as compared to $246.2 million at December 31, 2003, in each case
primarily as a result of the acquisitions that occurred after December
31, 2003.com.86
======= ========

TABLE B

K2 Inc.87 $0. The adjustments to reflect the
financial results of Rawlings, Brass Eagle, Volkl, Marker and Marmot
do not purport to be indicative of what would have occurred had the
acquisitions been made as of those dates, or of results which may
occur in the future.81, an increase from previous
guidance , and Adjusted diluted earnings per share forecast in
the range of $0. (NYSE:KTO) today reported net sales for the first quarter
ended March 31, 2005 of $318. The increase was due to 42% growth in technical skate
footwear and apparel and the acquisitions of Ex Officio and Marmot in
the second and third quarters, respectively, of 2004.6 94.9 million at March 31, 2004, and
inventories at March 31, 2005 increased to $345.6
times.87 to $0.

TABLE C

K2 Inc.

FOOTNOTES AND RELATED INFORMATION FOR TABLE B

Explanation of adjustments:
(in thousands)

(a) Amounts represent K2's results of operations for the periods
presented in accordance with U.
The excluded items include certain non-cash costs and expenses
associated with K2's acquisition activities as well as non-cash
stock-based compensation expense associated with restricted stock
awards because K2 management does not believe these non-cash expenses
are indicative of K2's core business.

stockli polarized

About HEAD

Head NV is a leading global manufacturer and marketer of premium
sports equipment. Any statement in this press release that
is not a statement of historical fact is a forward-looking statement,
and in some cases, words such as "believe," "estimate ," "project,"
"expect," "intend," "may," "anticipate," "plans," "seeks," and similar
expressions identify forward-looking statements.65 in
2004.6 million in 2003 and $114.9 million
in the fourth quarter of 2004, an increase of 437.
The segment information presented below is for the twelve months
ended December 31:

Sales to
Unaffiliated
Customers Operating
Profit (Loss)
------------------ ---------------
2004 2003 (a) 2004 2003 (a)
--------- -------- ----- - --------
(in millions)

Marine and Outdoor (b) $336.5 95.
Primarily as the result of the acquisitions of K2 Licensing +
Promotions in the 2004 first quarter, Marmot, Volkl and Marker in the
2004 third quarter, and the Company's offering of common stock, the
Company increased its number of shares of common stock outstanding by
1.97 to $1.02,
in each case based on assumed basic shares outstanding of 46.83 $0.83 $0.03 $0. Adjustments to include the results of operations
of other additional acquisitions completed by K2 during 2003 and 2004
have not been made because the effects of these additional
acquisitions were not material on either an individual basis or in the
aggregate to K2's consolidated results of operations.

(b) Amounts represent K2's results of operations for the periods
presented in accordance with U. These
capitalized costs are amortized over the term of the related debt. Generally Accepted Accounting Principles.91

For Q2 2005, GAAP diluted earnings per share forecast in the
range of $0. K2's net sales in the first quarter of 2004 were
$277.
Operating income as a percentage of net sales for the first
quarter of 2005 was 3.9 9.4 22.2
========= =========== ----------- -----------

Corporate expenses, net (2.6)

Interest expense (7.8 million shares issued and outstanding at March
31, 2005 as compared to 34.5 million in 2004, and projects total expenses of approximately
$3.14 assuming the acquisitions of Marmot,
Volkl and Marker were completed on January 1, 2004.4
million.05, in each case based on
assumed shares outstanding of 47. Investors can listen to the live webcast at
www.03 $0.96 $1.

tyrolia icer

We have seen our EBITDA
grow from $41.

Share Repurchase Program

K2's Board of Directors authorized the repurchase of the Company's
common stock as a means to enhance shareholder value.0 $42. See Table B below for an explanation of the "Adjusted" and "Pro
Forma" presentations.91, in each case based on assumed fully
diluted shares outstanding of 55.83 to $0.4
million.
The forecast statements in this press release are based on current
expectations.

TABLE A

K2 Inc.44 $0.51 $0.75 $0.

The excluded items include certain non-cash costs and expenses
associated with K2's acquisition activities during 2003 and 2004 as
well as non-cash stock-based compensation associated with the
expensing of stock options beginning in the 2005 third quarter because
K2 management does not believe these non-cash expenses are indicative
of K2's core business. K2 will
continue to exclude such items in its Adjusted results and Adjusted
comparable period results.87 to $0.03, and Adjusted diluted earnings per
share forecast in the range of $0.4 million, which reflects a sales decline of 0.S. In order to comply with the requirements of Section
404, K2 estimated that it incurred total expenses of approximately
$2. is also providing 2004 and 2005 results on a pro forma
basis ("Pro Forma") that reflects the adjustments made in the 2004 and
2005 Adjusted results and also includes the pro forma results of the
acquisitions of Marmot, Volkl and Marker as if they were acquired on
January 1, 2004, the pro forma impact of additional interest expense
resulting from K2's issuance of $200 million of senior notes used for
the acquisitions as if the notes were issued on January 1, 2004 and
the pro forma impact of additional shares of common stock resulting
from the acquisitions and K2's equity offering in July 2004 as if the
acquisitions and the equity offering were completed on January 1,
2004. These results do
not purport to be indicative of what would have occurred had the
acquisitions been made as of those dates, or of results which may
occur in the future.03 and Adjusted diluted earnings
per share in the range of $0.03
and Adjusted basic earnings per share in the range of $0.fulldisclosure. Among K2's other branded products are
Miken(R) softball bats, Tubbs(R) and Atlas(R) snowshoes, JT(R) and
Worr Games(R) paintball products, Planet Earth(R) apparel, Hawk(R)
skateboard shoes, and Dana Design(R) backpacks . On July 1, 2004, K2 also
completed the sale of 6.

skiers stockli

Operating income as a percentage of net sales for the fourth
quarter of 2004 increased to 6.2 million in the fourth
quarter of 2004, an increase of 2.7 247.4) (10.1
million from $237.8 million shares outstanding at
December 31, 2004 as compared to 33.

Sarbanes-Oxley Act of 2002

Section 404 of the Sarbanes-Oxley Act of 2002 requires K2,
commencing with its 2004 Annual Report, to provide management's annual
report on its assessment of the effectiveness of its internal control
over financial reporting and, in connection with such assessment, an
attestation report from its independent registered public accountant,
Ernst + Young LLP. For the same period, K2
forecasts GAAP basic earnings per share in the range of $0.01 to $0.

Investor Conference Call

K2's regular quarterly earnings conference call is scheduled to
begin at 1:45 p. Investors can listen to the live webcast at www.k2inc. K2's diversified mix of products is used primarily in
team and individual sports activities such as fishing, watersports
activities, baseball, softball, alpine skiing, snowboarding, in-line
skating and mountain biking .

Safe Harbor Statement

This news release includes forward-looking statements.07 $0.19 $0.

FOOTNOTES AND RELATED INFORMATION FOR TABLE C

Explanation of adjustments:

(a) Amounts represent K2's forecast operating income and net
income for the periods presented in accordance with U.

(c) Adjustment represents the forecast non-cash compensation
expense resulting from stock options and restricted stock awards.0 million as compared to $19. Stearns and Shakespeare generated double digit
sales growth in several product lines including children's flotation
devices , ski vests, fishing rods and reels, and our new line of
premium fishing line.

Profit Trends

Gross profit in the first quarter of 2005 increased to 32.0 (12.
K2's total debt increased to $418.6 million.
K2 forecasts strong liquidity (cash and available capacity under
K2's revolving credit facility) in 2005, with total debt before
acquisitions (if any) projected to decrease from current levels by the
end of the second quarter. is a premier, branded consumer products company with a
portfolio of leading brands including Shakespeare(R), Pflueger(R) and
Stearns(R) in the Marine and Outdoor segment; Rawlings(R), Worth(R),
and K2 Licensing + Promotions(R) in the Team Sports segment; K2(R),
Volkl(R), Marker(R), Ride(R) and Brass Eagle(R) in the Action Sports
segment; and, Adio(R), Marmot(R) and Ex Officio(R) in the Footwear and
Apparel segment.01 $0.77 $0 .81

Adjusted Basic EPS $0.
generally accepted accounting principles (GAAP), for the three months
ended March 31, 2004 and 2005, K2 also used Pro Forma Adjusted
measures of operating income, net income and earnings per share, which
are adjusted from the GAAP-based results to include the results of
operations of significant acquisitions and related costs prior to
their date of acquisition and to exclude certain non-cash costs and
expenses.

crosscountry uvex

While we
believe we have just begun to realize the revenue and operational
synergies available as a result of our recent transactions, we remain
cautious about the timing of their impact. Given the
complexity of the industry's seasonal business, we operate with
particular attention to EBITDA and free cash flow.

5% for the 2003
comparable period.0%
of net sales in the prior year. For the twelve months ended December
31, 2004, selling, general and administrative expenses increased
slightly as a percentage of net sales to 26. Growth was
driven by double digit increases in sales of K2 skis and snowshoes ,
improved sales of snowboards, and the acquisitions of Volkl and Marker
at the beginning of the third quarter of 2004.6 11. In
addition, the 2003 results only include approximately nine months ,
three months and less than three weeks of results of Rawlings, Worth
and Brass Eagle, respectively , which were acquired on March 26, 2003,
September 16, 2003 and December 8, 2003, respectively. K2 's management
believes the Adjusted financial measures are useful to evaluate K2's
operations.

06, in each case based on
assumed shares outstanding of 47.

Unaudited Financial Information

The financial results included in this release are unaudited.m.91

Calculation of EBITDA (i):
-----------------------

GAAP Operating Income $32,052 $81,020 $87,100 $90,520
Depreciation and
Amortization 18,530 33,055 31,995 31,995
----------- ----------- ----------- -----------
EBITDA $50,582 $114,075 $119,095 $122,515
=========== =========== =========== ===========

Calculation of Free
Cash Flow (j) :
-----------------------

GAAP Net Income $11,424 $38,941
Non-cash tax expense 2,556 14,402
----------- -----------
Free Cash Flow $13,980 $53,343
=========== ===========

See accompanying footnotes and related information for Table B below.----K2 Inc.05

K2 Inc.4 million, K2's net sales for the 2005 first quarter were $283.8% in 2005
excluding the impact of these acquisitions.4 million, K2's net sales for the 2005 first quarter were $283.9
million in the first quarter of 2005, an increase of 246% over the
2004 period.7) (2. In
addition, the 2004 first quarter results include less than a full
three months of results of K2 Licensing + Promotions which was
acquired by K2 on January 23, 2004. generally accepted
accounting principles ("GAAP") to EBITDA and free cash flow ("Free
Cash Flow"). is providing actual results and forecast guidance on a
financial basis in accordance with GAAP, and on an adjusted basis
("Adjusted") that excludes the impact of certain non-cash expenses
including: amortization of purchased intangibles resulting from K2's
acquisition activities; amortization expense associated with the
increase in fair market values of the inventories of acquired
companies; amortization of capitalized debt costs incurred in
connection with K2's acquisition activities during 2003 and 2004; and
non-cash stock-based compensation expense.
Due to the seasonality of their product lines , Volkl, Marker, and
Marmot normally incur losses in the first and second quarters, and are
profitable in the last two quarters of the year. These adjustments also do not include the results
of operations of certain other acquisitions completed by K2 after the
2004 first quarter because the effects of such acquisitions were not
material on either an individual basis or in the aggregate to K2's
consolidated results of operations.77 to $0.
For the second quarter of 2005, K2 forecasts GAAP diluted earnings
per share in the range of $0.03 to $0.fulldisclosure.

(b) The increase in debt is caused by K2's acquisitions completed
after the 2004 first quarter, including the seasonal working
capital requirements of these acquired businesses, and the
issuance of $200 million of senior notes in July 2004. generally accepted accounting
principles.
(b) Adjustment reflects the additional unaudited results of
operations prior to the acquisition by K2 as if each significant
acquisition completed by K2 after the 2004 first quarter were included
in K2's results for the quarter ended March 31, 2004. Management
uses EBITDA in evaluating the overall performance of K2's business
operations .

bindings icer

HEAD Launches Liquidmetal Skis for 2005/2006 Season at Munich Trade Show

87 to $0.8 million in the prior year, and diluted earnings per share of
$0.8
million, a 310% increase from the fourth quarter of 2003. Operating income for the twelve month period ended
December 31, 2004 was $81. K2's net sales in the
fourth quarter of 2003 were $193.7 $718. is also providing 2003 and 2004 results on a pro forma
basis ("Pro Forma") that reflects the adjustments made in the 2003 and
2004 Adjusted results but also includes the pro forma results of the
acquisition of Marmot as if it was acquired on January 1, 2003, the
acquisitions of Volkl and Marker as if they were acquired on April 1,
2003, the pro forma impact of additional interest expense resulting
from K2's issuance of $200 million of senior notes used for the
acquisitions as if the notes were issued on January 1, 2003 and the
pro forma impact of additional shares of common stock resulting from
the acquisitions and K2's equity offering in July 2004 as if the
acquisitions and the equity offering were completed on January 1,
2003 . These adjustments
also do not include the results of operations of certain other
acquisitions completed by K2 during 2003 and 2004 because the effects
of such acquisitions were not material on either an individual basis
or in the aggregate to K2's consolidated results of operations.87 to $0.

Cash Flow

As detailed in the attached financial statements, net cash
provided by operating activities jumped to $18.m. Reconciliation of Diluted Shares and Earnings Per Share
(in thousands, except for per share amounts)

Quarter ended
March 31, 2005
-----------------

Quarter ended March 31, 2005 - basic shares (a) 46,177

Dilutive impact of stock options, restricted stock
awards, warrants and shares in escrow 1,325
-----------------

Quarter ended March 31, 2005 - diluted shares (b) 47,502
=================

Net income for the quarter ended March 31, 2005 (c) $2,324
=================

Quarter ended March 31, 2005 - basic earnings per
share (c)/(a) $0.09

GAAP Diluted EPS $0.08

Calculation of EBITDA (h):
--------------------------

GAAP Operating Income (a) $19,522 $10,011
Depreciation and Amortization 5,469 7,782
----- ---- ---------
EBITDA $24,991 $17,793
========= =========

Twelve months ended
Calculation of EBITDA (h): March 31 , March 31,
2004 2005
------------- ------------- -------------------

GAAP Operating Income (a) $42,820 $71,509
Depreciation and Amortization 20,503 34,595
--------- ---------
EBITDA $63,323 $106,104
========= =========

Calculation of Free Cash Flow (i) :
------------------------- ----------

GAAP Net Income (a) $22,027 $30,525

Less: Amortization of acquired intangibles and
amortization of increase in fair value of
inventories of acquired companies (c) 4,908 8,224
Non-cash tax expense 7,403 10,402
--------- ----- ----
Free Cash Flow $34,338 $49,151
========= =========

See accompanying footnotes and related information for Table B
below.

stockli nordica

Several of HEAD's ski lines
will take advantage of the Liquidmetal technology, including Thang for
women, XRC skicross, Worldcup racing, All-Mountain Cruising and
Monster freeride.

K2 Inc. Reports Results for Fourth Quarter 2004 and Provides Guidance For 2005

79, and Adjusted diluted earnings
per share forecast in the range of $0.86, an increase of 95% over the 2003
comparable period.9 million, a 241% increase
over the 2003 comparable period. The first is the
timing of the acquisitions of Volkl, Marker and Marmot at mid-year.1
million in 2004, and we project over $120 million in 2005.7% of net sales for the
twelve months ended December 31, 2004 as compared to 4.9 2.4 (12.1 37.9 million at December
31, 2004 from $216.65
assuming the acquisitions of Marmot, Volkl and Marker were completed
on January 1, 2004.
K2 forecasts strong liquidity (cash and available capacity under
K2's revolving credit facility) in 2005, with total debt before
acquisitions (if any) projected to decrease from current levels by the
end of the second quarter .44
=========== =========== =========== =========

Shares:
Basic 46,077 29,238 40,285 24,958
Diluted 55 ,442 30,206 49,345 28,750

(a) The twelve month period ended December 31, 2003 includes a
$2.65 $0.03 $0.

(h) Pro Forma basic and diluted shares outstanding reflects the
increase to GAAP basic and diluted shares as if the shares of K2
common stock issued in connection with the acquisitions of Rawlings,
Brass Eagle, Volkl, Marker and Marmot and the public offering of K2
common stock were completed on January 1, 2003.

K2 Inc. Reports Results for First Quarter 2005 and Updates Guidance for 2005

3 million, as compared to $10.2 million,
excluding net sales in the aggregate of $45.2% of net sales
in the prior year. The increase was due to the acquisitions of Volkl and
Marker at the beginning of the 2004 third quarter offset by declines
in sales of in-line skates and paintball products.05,
in each case based on assumed shares outstanding of 46 .31
========= =========

Diluted earnings per share:
Net income $0.
SELECTED BALANCE SHEET INFORMATION
(in thousands)

As of March 31
2005 2004
----------- -----------
(unaudited) (unaudited)

Cash $39,868 $19,786
Accounts receivable, net 310,425 (a ) 244,103
Inventories, net 345,160 (a) 215,774
Total current assets 742,633 (a) 533,027
Accounts payable 78,878 (a) 56,784
Total debt 418,025 (b) 209,209

Shareholders' equity $680,742 (c) $465,760

(a) Increase from March 31, 2004 is attributable to the
acquisitions of Marmot Mountain Ltd.
(h) Earnings before interest, taxes, depreciation, and
amortization ("EBITDA") included in this press release is a non -GAAP
financial measure which represents net income excluding the effects of
interest, income taxes , depreciation, and amortization.

freeriding groomer

The business is organized into four divisions:
Winter Sports, Racquet Sports, Diving and Licensing.9 million, an increase of 75% from
$193.2 million in 2002 to $50.8% in the comparable
2003 period.1% in
the prior year. Earth Products was formerly included in the Action Sports
segment.4 million in the 2004 fourth quarter, up 14.4
Team Sports 250.7
Apparel and Footwear 110.9) (5.8)

Gain on sale of operating division - 2.6
====== ========

(a) Results for the twelve months ended December 31, 2003 do not
include the results of K2 Licensing + Promotions, Ex Officio, Marmot,
Volkl and Marker or K2's other acquisitions during 2004 since these
companies were acquired by K2 Inc.1 million at December 31, 2003.
On June 30, 2004, K2 acquired Marmot, a premium manufacturer of
technical performance apparel, and on July 7, 2004 acquired Volkl and
Marker, premium manufacturers of alpine skis, bindings and snowboards .
Due to the seasonality of their product lines, Volkl, Marker, and
Marmot normally incur losses in the first and second quarters, and are
profitable in the last two quarters of the year. For the same period, K2
forecasts GAAP basic earnings per share in the range of $0.'s Annual Report on Form
10-K to be filed with the SEC on or before March 16, 2005.
STATEMENTS OF INCOME
(in thousands, except for per share figures)

FOURTH QUARTER TWELVE MONTHS
ended December 31 ended December 31
------------------------ ----------------------
2004 2003 2004 2003
----------- -- --------- ----------- ---------
(unaudited) (unaudited) (unaudited) (audited )

Net sales $338,916 $193,785 $1,200,727 $718,539
Cost of products sold 222,051 136,096 800,678 498,620
----------- ----------- ----------- ---------
Gross profit 116,865 57,689 400,049 219,919

Selling expenses 56,785 33,395 197,134 116,509
General and
administrative
expenses 38,600 18,845 121,895 71,358
----- ------ ----------- ----------- ---------
Operating
income 21,480 5,449 81,020 32,052

Interest expense 7,638 2,702 21,449 9,950
Debt extinguishment
costs - - - 6,745
Other (income)
expense, net (a) 358 (564) (246) (2,218)
----------- ----------- ----------- ---------
Income before
provision for
income taxes 13,484 3,311 59,817 17,575

Provision for income
taxes 4,659 1,159 20,876 6,151
----------- ----------- ----------- ---------

Net income $8,825 $2,152 $38,941 $11,424
=========== =========== =========== =========

Basic earnings per
share:
Net income 0.2 million gain related to the sale of the utility and light pole
assets during the 2003 second quarter. Details on earnings per share calculations are
provided in Table A below. Gross
profit as a percentage of net sales in the 2005 first quarter
benefited from higher gross margins in the Apparel and Footwear
segment .1
million in the 2004 first quarter.1 8. subsequent to March 31, 2004. The increase in debt as of March 31,
2005 is primarily the result of K2's acquisitions completed after the
2004 first quarter, including the related seasonal working capital
requirements of the acquired businesses , and the issuance of $200
million of senior notes in July 2004. K2 plans to do a live broadcast of the conference call over
the Internet.05
=================

Quarter ended March 31, 2005 - diluted earnings per
share (c)/(b) $0.15 $0.01 $0.

kuu groomer

Given the fact that the Liquidmetal alloy does
not deform on impact, combined with the torsional stability of the
HEAD Intelligence (TM) technology, designers are now able to offer a
ski with increased response and power. Liquidmetal Technologies disclaims any intention or
obligation to update or revise any forward-looking statements , whether
as a result of new information, future events, or otherwise.5 million, a 294%
increase from the 2003 comparable period, and net income was $8.
They are highly seasonal businesses and normally generate losses in
the first six months of the year, which are not reflected in our full
year 2004 GAAP financial figures.0 39.8 $17. Sales and operating income for this business in the twelve
months ended December 31, 2003 were $12. These results do not purport to be indicative of
what would have occurred had the acquisitions been made as of those
dates, or of results which may occur in the future.03
and Adjusted basic earnings per share in the range of $0. These statements do not include the potential
impact of any mergers, acquisitions or other business combinations
that may be completed after the date of this release.18 $0.

TABLE C

K2 Inc.04 $0.87 $0. These Adjusted financial measures are not
to be considered in isolation from, or as a substitute for, financial
results prepared in accordance with GAAP.

Action Sports

In a seasonally slow quarter, net sales of skis, snowboards,
in-line skates, bikes, snowshoes and paintball products totaled $80.9 0. Higher net cash flow in the first quarter was driven
by a higher concentration of sales in the third and fourth quarters in
winter products.85 $0.

Use of Adjusted Financial Information

To supplement the actual and forecast results presented above in
accordance with GAAP for the applicable periods, K2 uses Adjusted
measures of operating income, net income and earnings per share, which
are adjusted from the GAAP-based actual and forecast results to
exclude certain non-cash costs and expenses.S.

rebell wintersports

HEAD first incorporated Liquidmetal technology in their tennis
racquets two years ago, and they were recently voted #1 in product
innovation by Fortune Magazine.75 to $0.03 and Adjusted diluted earnings
per share in the range of $0.97 $1.79
Pro Forma Adjusted
Diluted EPS $0.5
million for the 2004 comparable period, and net income for the 2005
first quarter was $2.1% compared to 7 .

Team Sports

Rawlings, Worth, and K2 Licensing + Promotions had total net sales
of $92.4) (4.8
million at March 31, 2004, in each case primarily as a result of the
acquisitions that occurred after March 31, 2004.9 million shares outstanding at March 31,
2004. For those who are not
available for the live broadcast, the call will be archived on
www.8 million shares,
respectively , of common stock of K2.

K2 INC.05
Pro Forma Adjusted Diluted EPS $0.90
GAAP Diluted EPS $0. Adjustments to include the
results of operations of other additional acquisitions completed by K2
after the 2004 first quarter have not been made because the effects of
these additional acquisitions were not material on either an
individual basis or in the aggregate to K2's consolidated results of
operations.