SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that it is expanding its sales and distribution in China through a joint venture (known as SKECHERS China) with Luen Thai Enterprises, a conglomerate based in Hong Kong with investments in various industries in Asia, North America and the Pacific Region. Over the next three years, SKECHERS China expects to open more than 1200 points-of-sale for the brand across China.

In addition to SKECHERS footwear, SKECHERS China will design and market a collection of SKECHERS-branded men’s and women’s fashionable active and leisure wear. The apparel, which is expected to reach market in 2009, will be designed as an extension of the footwear and should further grow the brand in China.

“China’s share of the global footwear market is estimated at close to $9 billion for 2008 with this number increasing due to the growing middle class,” stated Willie Tan, CEO of Luen Thai Enterprises and SKECHERS China. “SKECHERS is a famous global brand and there is a huge market segment in China waiting to be satisfied by SKECHERS’ trendy lifestyle footwear products. We expect to reach $10 to $15 million of sales by year-end 2008.”

“To SKECHERS, China is a country of giant potential -- 1.3 billion people, steady market growth and rapid retail growth,” began Michael Greenberg, president of SKECHERS and chairman of SKECHERS China. “We see SKECHERS -- a proven brand in hundreds of markets around the world -- as ideal for China and ready to capitalize on the power of its population. And with Luen Thai Enterprises’ forward-looking management team, experience in the fashion supply chain and retail operations expertise, we believe it is the right company to help grow our business in China.”

Luen Thai Enterprises is a privately held company and employs more than 2,000 people. It is part of close to a $1 billion group of companies that also includes footwear manufacturing, logistics, hotel, travel and tour operations, among others. Most of the businesses have been operating for more than 20 years. Luen Thai Enterprises is steadily bolstering its foundation in Mainland China. Its strong business network in the local retail industry and long heritage of doing business in the country is expected to complement SKECHERS China’s growth plans.

The first shipments of SKECHERS product under the direction of SKECHERS China is planned for the Chinese New Year, February 2008. The offering will encompass all of the SKECHERS lines for men, women and kids -- including lifestyle sport, casual and molded footwear. The footwear will be supported by a marketing campaign that includes print, TV and point-of-purchase materials and displays.

SKECHERS and Luen Thai Enterprises are both making a substantial investment in SKECHERS China to expand and maximize the growth of the brand. The joint venture will grow SKECHERS’ existing flagship store base from three to 10 locations in Shanghai, Beijing, Shenzen and Guangzhou by the end of 2009. The companies also plan to expand distribution to another 250 points-of-sale in the next two years, and more than double SKECHERS’ dedicated stores in 2009.

Mr. Tan continued: “We believe SKECHERS’ diverse offering of lifestyle footwear will be just what our target market is looking for and SKECHERS will be the leading lifestyle footwear brand in China.”

ABOUT Luen Thai Enterprises

Based in Hong Kong, Luen Thai Enterprises is a conglomerate with businesses and investments in multiple industries including footwear manufacturing and supply-chain services, ocean and air cargo services, long-line fishing and distribution of fresh seafood products, real estate development, travel and tours, and wholesale distribution. Luen Thai Enterprises has business operations in China, Japan, the Philippines, the United States, Micronesia and the Pacific region. A sister company of Luen Thai Enterprises, Luen Thai Holdings Limited is one of the leading apparel manufacturing and supply chain service providers worldwide. The company produces more than 80 million pieces of apparel annually for men, women and children.

ABOUT SKECHERS USA, Inc.

SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the company’s global network of distributors and subsidiaries in Canada, Brazil, Asia, and across Europe. Please visit www.skechers.com or call the company’s information line at 877-INFO-SKX.

Note: this article contains forward looking statements.  If you are concerned, please contact directly to Skechers to ask for more information...