Trade Announcement

TRADE ANNOUNCEMENT

Surf Sales & Dakine.

Until recently we haven’t been able to comment due to the legalities of our position, but as of Oct 26^th this year our business relationship with GSM Eu(Billabong) and the Dakine brand has been terminated, I’ll not dwell any further on what has been an unhappy period for us, as we’ve tried to get to grips with dealing with a large corporation since their acquisition of the Brand in 2008 and with different views on their approach to our market, suffice to say we tried, it didn’t work out and we’ve parted company.

We very much value our relationship with the independent retail base upon which we built our company and the brands with which we have traded over the years and thank everyone, trade and consumer alike, for the business we have transacted together. We hope the brand Dakine continues to prosper in the future, we however now have to tread a different path and will concentrate on offering products from other suppliers.

Graeme Fuller

M.D. Surf Sales Ltd.