Under Armour (UA)

Our Licensing business is currently made up of two domestic licensee partners and one international licensee. Our domestic licensees manufacture, sell and distribute Under Armour socks, hats and bags through our current distribution channels.  Our international licensee manufactures, sells and distributes our entire line in Japan. We recently added a third domestic licensee to sell and distribute a limited assortment of our product to college bookstores and green grass golf accounts beginning in Spring 2006.  Our strategy for the licensing business is to maintain our current disciplined and deliberate approach.  First and foremost, we are vigilant in our focus on protecting the Under Armour brand.  We carefully select partners and only enter arrangements that broaden our category offerings in a way that provides product consistency and a “fit” with the Under Armour promise to the marketplace.  In short, we view our licensing business as an important way to generate incremental revenue and strategically broaden the reach of our brand.  At this point, licensing will not be a significant growth driver for our overall business.