pos. or neg results?, page-5

positive results Action board sports and apparel company, Globe International Limited, today announced a
return to full year profitability with a pre-amortisation, pre tax profit for the year of $16.6
million, a $25.4 million turnaround from the prior year.

The chief executive officer of Globe, Mike Sonand said today that the positive turnaround
represents a solid foundation from which to grow Globe into the future.

“Over the last year, we have completed an important strategic review of our operations,
significantly cut our cost base, reinvested heavily in our brands and designed and launched
exciting new product,” Mr Sonand said.

“The benefits from these efforts are now beginning to flow, but there are still other initiatives
that we believe are vital for growth that will be implemented in the months ahead.

“A particularly positive aspect of this year’s result is the turnaround in our Globe North
American business over the last six months of the financial year which is the result of
internal restructuring, stringent cost management and aggressive marketing.

“Group second half sales and net margins improved significantly over the first half. This
momentum is expected to continue throughout the 2005 financial year and we anticipate
sales will exceed our previous record of $217 million achieved in the 2001/02 year.

“The improvement in second half sales in North America and Europe confirms our view of
the opportunities these markets offer.

“The company’s cash position, net of debt, at 30 June 2004 was AUD17.2 million, an
improvement of AUD12.5 million over the previous year, underpinning the strength of the
group’s financial position,” Mr Sonand said.