Announcement

Periculum Capital Company, LLC is pleased to announce the sale of Motionwear to FILA. Periculum served as Motionwear's exclusive financial advisor during the transaction.

Periculum's Advisory Team Joseph H. Broecker Senior Managing Director 317.636.1800 ext. 202 jbroecker@periculumcapital.com Robert H. Shortle Senior Managing Director 317.636.1800 ext. 204 bshortle@periculumcapital.com Christopher M. Caniff Managing Director 317.636.1800 ext. 209 ccaniff@periculumcapital.com Todd R. Lugar Director 317.636.1800 ext. 205 tlugar@periculumcapital.com Ryan W. Flynn Senior Analyst 317.636.1800 ext. 203 rflynn@periculumcapital.com

A Classic Strategic Sale Transaction

Motionwear, Inc. is a designer, manufacturer and distributor of dancewear and gymnastics apparel, serving the US market. The shareholders of Motionwear desired to achieve liquidity after the Company had grown to significant levels of revenue and complexity since the founding of the Company in 1987. After a preliminary market review and an operational assessment, Periculum believed a sale transaction was possible which could achieve the shareholder valuation objectives due to the Company’s attractive niche markets and unique “just in time” process for apparel manufacturing. Historically, apparel products, such as Motionwear’s, have been manufactured in the Pacific Rim. Our marketing process was targeted to strategic as well as selective financial buyers. Although interest was generated with financial buyers, the most significant interest came from industry participants in the sports apparel industry. Sport Brands International, LTD (FILA), which is backed by a large buyout fund, was the successful bidder. Their aggressive offer was driven by a strong interest in adding the Motionwear product lines to their global marketing platform as well as the potential to incorporate Motionwear’s manufacturing skill and capability with other apparel product lines.