Backwoods Joins Forces With San Diego-Based Nitches

Nitches has acquired, through an exchange of shares, outdoor lifestyle retailer, Backwoods®. This is Nitches’ first venture into retailing and signals a move by the company to extend its niche focus into the specialty retailing sector. The infrastructure of Nitches will be leveraged to grow the Backwoods® brand as a whole. Steve Wyandt, Chairman of Nitches, indicated that “We are fortunate to find a retailer in this emerging category of outdoor lifestyle with a history of product mix and management expertise. We identified in Backwoods’ CEO, Jennifer Mull, an entrepreneurial spirit that is consistent with our philosophy at Nitches. Jennifer is the driving force of this alliance and we look forward to her continued leadership. Visit a Backwoods store or online and you will understand.” Mull has signed a multi-year agreement to remain as CEO and President.

Mull joined Backwoods in 2003. Over the past 5 years, she has steered Backwoods in a new direction – re-energizing the 35 year old company through implementation of a formal strategic business plan, redefining the merchandising mix, and as she says, “listening to input from the top-notch staff – the people that touch the customers every day – that Backwoods is so fortunate to have.” Backwoods has felt the difference as same store sales have nearly doubled and expansion is part of the future plan for the company.

This new store development, the creation of a Backwoods Collection – a complementary apparel line to its current selections, and the possibility of on-line sales were all motivating factors behind Mull joining forces with Nitches. “If Backwoods was to achieve the goals set forth in the on-going strategic plan, we needed a partner that could provide expertise in apparel development and manufacturing, and could offer increased financial backing. I am excited for the opportunities created for Backwoods by joining Nitches, Inc. I feel very fortunate to find a corporate partner with goals, philosophies, and a strategy that align with those we have created at Backwoods. I look forward to a very bright future.”

Backwoods, started in Wichita, Kansas in 1973, has a long history of providing customers in the Midwest with a strong assortment of top quality, technical gear alongside a broad collection of outdoor lifestyle clothing and footwear. Growth initiatives over the past 5 years have included the introduction of Backwoods Adventures, the adventure travel division, store relocations, and a recent corporate move to Austin, Texas.

The transaction was structured as a stock swap and Backwoods Equipment Company will become a wholly owned subsidiary of Nitches, Inc.

Nitches, Inc. has been designing and marketing quality products for niche markets since 1971. The Company markets sleepwear, robes, loungewear, and daywear under the following brands: Gossard® (www.gossard.com), Princesse tam tam® (www.princessetam-tam.com), Shock Absorber® (www.shockaborber.co.uk), Derek Rose® (www.derek-rose.com), Eminence® , Crabtree & Evelyn® (www.crabtree-evelyn.com), Odille Oasis®, Cuddl Duds® (www.cuddlduds.com), Anne Lewin®, Dockers® (www.dockers.com) and Claire Murray®. The Company produces women’s western wear and outerwear by Adobe Rose®, Saguaro® and Southwest Canyon®. The Company’s menswear offerings include Nat Nast® (www.natnast.com), So-Cal Speed Shop® (www.socalspeedshop.com), Dockers® and Newport Blue® swimwear and graphic t-shirts, The Skins Game® golf apparel (www.skinsgameclothing.com),and ZOIC® performance cycling apparel (www.zoic.com). The Company also distributes candles and home accessories under the Bill Blass® Home Décor brand (www.billblass.com) and dinnerware under the Paula Deen® brand (www.pauladeen.com). The Company’s products are sold to better department stores, specialty boutiques, moderate department stores, and national and regional discount department stores and chains. Additionally, the Company develops and manufactures private label products for many leading retailers and multi-channel marketers.

The Company is headquartered in San Diego, California with offices in New York City, Los Angeles, Dallas, and Hong Kong. The Company’s shares are traded on the NASDAQ Capital Market under the symbol NICH. Visit our web site at www.nitches.com.