Karhu Sports and Karhu Holding Reach Settlement Agreement

Karhu Holding BV and Karhu Sports Oy announced on January 29, 2009, that they have reached an amicable settlement of their dispute involving the ownership and control of the Karhu trademarks.

Under the agreement Karhu Sports Oy will continue with the ski business worldwide. Karhu Holding BV is confirmed as the owner of the Karhu global trademark portfolio and will be responsible for the sale of all other products on a global basis including in Scandinavia and Finland, where it will commence sales at once.

Karhu Sports Oy will continue its footwear business in Scandinavia and Finland until the end of 2009. All current third party licenses, including the K2 Ski license, to use the Karhu brand will remain with Karhu Holding BV.

The parties are committed to work in ways which will ensure that the Karhu brand and Karhu products continue to reflect the high quality and technical innovation which they have represented since 1916.