Generation Y, the individuals born between 1977 and 1994, is a powerful demographic supported by solid growth and spending power. Comprising more than 73 million people within the United States, or nearly 26% of the U.S. population, Generation Y represents the second largest demographic next to the Baby Boomer generation. The U.S. Census Bureau estimates that Generation Y will represent as much as 41% of the U.S. population by the end of the decade. Individuals ranging in age from 13 to 19 account for the largest segment of the Generation Y demographic, or approximately 40% of the total, and are growing at a rate nearly twice as fast as the overall population. Annual spending in this age group has climbed nearly 61% since 1995, reaching approximately $175 billion in 2003, with direct and indirect purchasing power that is estimated to exceed $650 billion annually by the end of the decade. It is believed that this combination of Generation Y's youth and purchasing power have made it a powerful driver of trends in fashion, music and sport.

The Company currently offers 15 models of fashion sunglass products. The majority of the Company’s fashion sunglass frames are constructed of propionate or acetate, which enable the Company to produce smooth, dense products that are adjustable to the contours of each individual's face and are very comfortable to wear. The Company is one of the few brands in the action sports and youth lifestyle markets to offer high-quality fashion sunglass frames constructed from propionate or acetate. These frames are engineered utilizing a wide variety of unique colorations and color fades that are created and/or polished for a high-gloss finish. The majority of the Company’s fashion sunglass frames, including all color fades, are hand painted in Italy. The Company also incorporates adjustable wire-core temples into most of the Company’s fashion sunglass products so that the Company’s sunglass frames will provide a more custom fit for each individual. In addition, the Company offers sunglass frames forged from nickel silver alloy that are lightweight and pliable, yet strong. Retail prices for these models range from $70 to $225.

The Company currently offers six models of women-specific sunglass products. A majority of these models are constructed of propionate, which are engineered utilizing a wide variety of unique colorations and color fades that are polished for a high-gloss finish. The majority of the Company’s women-specific sunglass frames, including all color fades, are hand painted in Italy. Other materials utilized in this product line include grilamid and galvanized nickel silver. Retail prices for these models range from $80 to $120.

The Company currently offers seven models of performance sport sunglass products, which are designed to meet the demands of action sports athletes while offering innovative styling. The frames of all seven models are constructed from injection-molded grilamid, an exceptionally lightweight material that is shatter-resistant and remains pliable in all weather conditions. All of these models incorporate the Company’s patented Scoop airflow technology, contain the Company’s ARC lenses and are engineered to incorporate interchangeable lenses. Most models also are available with the Company’s Trident polarized lenses and Hytrel rubber on the bridge and temple tips of the frames to prevent slippage. Retail prices for these models range from $80 to $130.

The Company currently offers six models of snow goggle products. All of the Company’s models of snow goggles are constructed of injected polyurethane, incorporate the Company’s patented Scoop airflow technology, anti-fog lens construction and Isotron foam, and offer 100% ultraviolet, or UV, protection. Two of the models utilize the Company’s ARC spherical, dual-lens system, while the other models utilize cylindrical, dual-pane lens technology. Retail prices for these models range from $50 to $140.

Gross profit for the nine months ended September 30, 2004 increased 23% to $13.1 million from $10.6 million in the nine months ended September 30, 2003.

Sales and marketing expense for the nine months ended September 30, 2004 increased 24% to $7.9 million from $6.3 million in the nine months ended September 30, 2003.

General and administrative expense for the nine months ended September 30, 2004 increased 28% to $3.2 million from $2.5 million in the nine months ended September 30, 2003.