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Company Contact: J. R. Brian Hanna
Brass Eagle Inc.
Chief Financial Officer
Investor Relations: Chad A. Jacobs/Christine DiSanto
Integrated Corporate Relations
BRASS EAGLE FORMS PARTNERSHIP TO DEVELOP
EXTREME SPORTS COMPLEX
--Challenge Park Xtreme Scheduled to Open in September 2000—
Rogers, AR, November 3, 1999 – Brass Eagle Inc. (Nasdaq: XTRM) the worldwide leader in the manufacturing, marketing and distribution of paintball products, today announced that it has signed a definitive agreement with Forest Brown and Anderson Humphreys to develop Challenge Park Xtreme, an extreme sports and entertainment complex that includes nine paintball fields, a BMX track, an in-line skating rink, skateboarding ramps and mountain biking trails. Located on 154 acres on the Des Plaines River in Joliet, Illinois, Challenge Park Xtreme is scheduled to open in September 2000. Under the terms of the agreement, Brass Eagle will own the majority of a newly formed Limited Liability Company through its subsidiary, Brass Eagle Challenge Park, Inc. The deal is expected to be accretive to earnings beginning in fiscal 2001.
Forest Brown, who operates an existing Challenge Park in Joliet -- and is credited as one of the most successful paintball park operators in the world -- will close that location to join Brass Eagle in developing the new facility. The Forest Brown park recorded between 30,000 and 40,000 participants in 1998. In order to ensure a seamless transition for those patrons, the Forest Brown facility will close simultaneously with the grand opening of the new Challenge Park Xtreme in September 2000. Anderson Humphreys, recognized as one of the premier operators in the industry, has been running a Challenge Park in Memphis, Tennessee since 1994.
The new facility is strategically located just two miles from the Route 66 Motorsports Park, the largest drag racing track in the U.S. and across the river from the Empress Riverboat Casino. Route 66 will be the largest motor sports park in the world when its new NASCAR facility opens in 2000. The new Challenge Park Xtreme complex will also contain restaurants, retail shops, conference facilities, a theatre and a 300-car parking structure. A 10,000 square-foot registration complex, will host a retail center for paintball, skating and biking equipment and accessories, as well as guest registration.
Commenting on the announcement, Lynn Scott, Brass Eagle President and CEO stated, “We are very enthusiastic about this opportunity, which enables us to leverage our expertise in the paintball industry while at the same time, creating an additional growth vehicle for the Company. We are particularly excited to be partnering with Forest Brown and Anderson Humphreys, who are among the most successful park operators in the country. Equally important, we have a superior location and a built-in customer base of more than 30,000 who are expected to visit the nearby Challenge Park in 1999.”
Mr. Scott continued, “In keeping with our focus on growth opportunities that complement our core paintball business, we believe Challenge Park Xtreme will provide us with an ideal platform to test product, conduct market research and to further build Brass Eagle’s brand equity in the extreme sports arena. The lifestyles and purchasing decisions that are influenced by such sports as skateboarding, BMX biking and other extreme categories, continue to increase on a worldwide basis. This partnership to develop a new, multi-faceted Challenge Park positions Brass Eagle to benefit from these trends and facilitates our long-term strategy to reach a broader group of consumers by extending our brand.”
Brass Eagle is unique in providing a full line of paintball guns and accessory products from beginner through competition level. The Company is the dominant supplier of products for this rapidly growing sport. Brass Eagle was named one of the “Top 100” Hot Growth Companies by Business Week magazine in 1998 and again in 1999, and one of the IW Growing Companies 25, America’s Most Successful Small Manufacturers by Industry Week magazine.
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