Quiksilver, Inc. announced that it will establish a new, state-of-the-art Mountain Center in Park City, Utah, to unify the operations of its winter sports businesses and advance the position of its powerful lifestyle brands. The facility will house the U.S. headquarters for Rossignol and Dynastar, which are currently located in Burlington, Vt., as well as some operations of Quiksilver's existing snowboard businesses in Washington State.

The new Park City facility will for the first time combine and integrate in one location all U.S. operations of Rossignol, Dynastar, Lange and Look. It will also house U.S. operations for the newly-announced Roxy ski business, a collaboration with Dynastar to make a full line of alpine ski products targeted to young women.

In addition, a variety of functions for the Company's Lib Technologies, Gnu and Bent Metal snowboard brands will be based at the Mountain Center. DC Shoes, which has been part of the Quiksilver, Inc. group since 2004, will play an integral role in this initiative, led by its existing Park City-based Mountain Lab and market-leading snowboard boots.

The Company will also establish a distribution facility in the nearby Greater Salt Lake City area that will serve the Americas territory for mountain-related products. Many of Rossignol's administrative functions such as treasury, human resources and legal will be consolidated with Quiksilver's existing infrastructure in Huntington Beach. The Company noted that it will retain some presence both in Vermont and Washington State.

"We are very excited to take this important step to integrate Rossignol's U.S. businesses and bring all of these closely related operations together,” said Bernard Mariette, president of Quiksilver. “This move will create a strong base for our mountain-related brands in one of the world's pre-eminent locations for winter sports. Not only do we expect to reap significant operational and financial benefits, but we believe that the corporate cultures will benefit greatly from both the combination and the relocation. We have set our sights on becoming the undisputed global leader in the outdoor sports lifestyle market, and establishing this Mountain Center gives us a dominant footprint in the snow to complement our board riding base in Southern California."

Quiksilver, Inc. noted that it expects to commence the relocation of the various facilities and personnel connected to the new Mountain Center in the Spring of 2006. The Company anticipates that it will take an estimated $5 million to move Rossignol's and Dynastar's operations from Vermont. It further noted that this cost is a component of Quiksilver's acquisition of Rossignol and, accordingly, will increase the cost of the acquired business but will not be reported as part of the Company's operating results.

The Company anticipates that the cost of the move will largely be funded through the sale of the Vermont facilities, which have currently been valued at over $4 million. Additionally, Quiksilver noted that it has received a generous offer of up to $2.5 million in tax incentives from the State of Utah.