Heelys Inc., (NASDAQ: HLYS) makers of the popular wheel-in-the-heel skate shoe, is expanding their line of wheeled footwear, apparel, bags and accessories to include a “non-wheeled” shoe line - the Gamer by Heelys. A first of its kind, the new Heelys Gamer shoe embraces a favorite American pastime by featuring a simulated game controller on the outsole of the shoe.

“We’re continually looking for new ways to introduce product that addresses the interests of our target consumer,” said Heelys, Inc. Vice President of Design and Development Bob Byrne. “In considering the recent surge in video and online gaming paired with statistics showing 95 percent of heelers play video games, we knew the Gamer line was a natural.”

In July, Heelys took the Gamer shoe to the World Series of Video Games, an annual gathering of more than 90,000 extreme gamers. In an unscientific sampling, convention goers hailed the shoes as revolutionary.

Over the last 20 years, playing video games has moved solidly into the mainstream and is an integral part of global youth life and culture. In fact, according to a study published by the National Institute on Media & Family, a whopping 93 percent of U.S. children under 18 played a video game in the last year and 79 percent of U.S. children play video games on a regular basis. Of U.S.

households with children between the ages of two and 17, 74 percent own a video game console.

Designed to combine unique features with the latest in comfort technology, the Heelys Gamer line features two styles (Gamer Slip On and Gamer Lace) in six color combinations that are extremely lightweight and washable. Produced in boys and girls styles, the Gamer shoes will debut at the suggested retail price of $45.

“It’s a lot of shoe with exceptional design and comfort that redefines fun,” says Byrne.

Available in select stores November 2007, the Gamer shoes will launch just in time for the holiday season and will include four free video games in the box.

Visit www.heelysgamer.com for more information.

About Heelys, Inc.

(NASDAQ: HLYS) Heelys, Inc. designs, markets and distributes innovative, action sports-inspired products under the HEELYS® brand targeted to the youth market. The Company’s primary product, HEELYS-wheeled footwear, is the patented dual-purpose footwear that incorporates a stealth, removable wheel in the heel. HEELYS-wheeled footwear allows the user to seamlessly transition from walking or running to skating by shifting weight to the heel. Users can transform HEELYS-wheeled footwear into street footwear by removing the wheel. HEELYS-wheeled footwear provides users with a unique combination of fun and style that differentiates it from other footwear and wheeled sports products.