For:                DECKERS OUTDOOR CORPORATION

                        Company Contact:    Scott Ash
                                            Chief Financial Officer
                                            (805) 967-7611

                        Investor Relations: Integrated Corporate Relations, Inc.
                                            Chad A. Jacobs/Brendon E. Frey
                                            (203) 222-9013


          DECKERS OUTDOOR CORPORATION ANNOUNCES DEFINITIVE AGREEMENT TO
                                  ACQUIRE TEVA


GOLETA, Calif. (October 11, 2002) -- Deckers Outdoor Corporation (NASDAQ: DECK)
today announced that it has entered into a definitive agreement to acquire Teva,
the leading sport sandal brand in the footwear industry from Mark Thatcher, the
inventor of the Teva sport sandal and owner of the Teva patents and trademarks,
in a cash and stock transaction expected to be completed in the fourth quarter
of 2002. As a result of the acquisition, Deckers will own virtually all of the
Teva worldwide assets including all patents, tradenames, trademarks and all
other intellectual property, as well as Teva's existing catalog and internet
retailing business. The Company expects the transaction to be accretive to net
income by approximately $1,000,000 in 2003, but is not yet able to determine the
eventual impact on earnings per share until the closing date, when the
conversion feature of the preferred stock is priced.

The acquisition price is approximately $62.0 million. Deckers will pay cash in
the amount of $43.0 million and will issue to Mr. Thatcher subordinated notes of
$13.0 million, preferred stock of $5.5 million, 100,000 shares of common stock
currently valued at approximately $0.3 million and options to purchase 100,000
shares of common stock, valued at approximately $0.2 million. The $13.0 million
of subordinated notes will carry a coupon interest rate of 7% and an additional
2% interest which is to be accrued and paid at the maturity date in 2008. The
$5.5 million of preferred stock pays no dividends unless dividends are declared
and paid on the Company's common stock, is callable by the Company within the
next three years at face amount plus an additional 10% per year and is
convertible into common stock by the holder after three years, if it is still
outstanding, at a conversion price which approximates the fair market value at
the closing date. In addition, the preferred stock provides the holder with the
right to designate one member of the Company's Board of Directors.

Deckers has been selling the Teva line of sport sandals since 1985 under license
agreements with Mr. Thatcher. Sales of Teva footwear accounted for approximately
67% of Deckers' total sales in 2001.

Deckers also expects the acquisition to be accretive to its fiscal 2003 earnings
before interest, taxes, depreciation and amortization ("EBITDA") by
approximately $6 million, primarily as a result of the elimination of
approximately $5 million of minimum annual royalties under the existing Teva
license agreement. In addition, Deckers plans to further develop the acquired
catalog and internet retailing business which had sales in excess of $3 million
and earnings before income taxes of approximately $700,000 in 2001. Longer term,
the Company believes it will be able to leverage the strong Teva brand name by
selectively expanding into apparel, accessories, and other outdoor-related
products, which the Company expects to accomplish primarily through licensing
arrangements.



"This transaction represents a key milestone in the history of our Company,"
stated Douglas Otto, Chairman and Chief Executive Officer of Deckers. "Over the
past two decades, Teva has grown from a technical, sport-specific sandal into
the dominant brand in a category it created nearly 20 years ago. We are just
beginning to leverage Teva beyond sport sandals into additional categories such
as hiking, trail running, amphibious and other rugged outdoor footwear. This
acquisition allows us to take a long-term approach to our marketing and product
development, especially in connection with our recent expansion into new
footwear categories. In addition, this deal ensures Deckers' ability to continue
to sell Teva footwear in perpetuity, removing any uncertainty about Deckers'
ability to sell Teva footwear beyond the 2004 license renewal date. We look
forward to capitalizing on the new opportunities that will now be available to
us."

The Company intends to finance the $43.0 million cash component of the
acquisition through the use of existing cash on hand, senior debt provided by
Comerica Bank and the issuance of $12 million to $14 million of senior
subordinated notes to an unaffiliated third party. The senior debt provided by
Comerica Bank includes a $7 million term note with two-year amortization and a
$20 million revolving credit facility due in two years. The senior subordinated
notes will include a 12% coupon interest rate and an additional 4.75% interest
which is to be accrued and paid at the maturity date in 2008.

Mr. Otto continued, "We now have the ability to fully capitalize on the strength
of the Teva name and further evolve into a true performance and lifestyle brand
for the active outdoor enthusiast. This transaction will enable us to control
our flagship brand, increase our product offerings, pursue licensing
opportunities outside of footwear and transform our Company from a licensee to a
lifestyle brand owner. Financially it will eliminate all royalty payments on
Teva, add incremental sales and gross profit through the catalog and internet
retailing business and introduce new licensing opportunities, resulting in
enhanced future sales and earnings power."

Mr. Thatcher, commented, "I've enjoyed working with Deckers over the years.
Together, we have built Teva into one of the top brands in the outdoor industry.
Given my experiences with Deckers, I am confident in their ability to continue
the success of the brand."

Mr. Otto concluded, "After licensing the rights from Mark over the past 17
years, during which time Teva has enjoyed tremendous growth, we look forward to
taking this brand and our company to the next level. I would like to thank Mark
for his leadership and professionalism throughout the course of our licensing
agreements and I look forward to his continued involvement and direction."

Deckers Outdoor Corporation builds niche products into global lifestyle brands
by designing and marketing innovative, functional and fashion-oriented footwear,
developed for both high performance outdoor activities and everyday casual
lifestyle use. The Company's products are offered under the Teva, Simple and Ugg
brand names.

*This press release contains a number of forward looking statements, such as the
Company's estimates regarding incremental net income expected to result from the
Teva acquisition for the fiscal year ending December 31, 2003, expectations
regarding incremental EBITDA for 2003, potential for future Teva licensing
opportunities, expectations regarding the success of the Teva catalog and
internet retailing business and expectations regarding financing the Teva
acquisition transaction. These forward-looking statements are based on the
Company's expectations as of today, October 11, 2002. No one should assume that
any forward-looking statement made by the Company will remain consistent with
the Company's expectations after the date the forward-looking statement is made.
The Company intends to continue its practice of not updating forward-looking
statements until its next quarterly results announcement. In addition, such
forward-looking statements involve known and unknown risks,



uncertainties and other factors that may cause the actual results, performance
or achievements of the Company, or industry results, to differ materially from
any future results, performance or achievements expressed or implied by such
forward-looking statements. Many of the risks, uncertainties and other factors
are discussed in detail in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2001. Among the factors which could impact
results are the general economic conditions, world events and the strength or
weakness in the retail environments in which the Company's products are sold,
including the catalog and internet retailing market. In addition, the Company's
sales are highly dependent on consumer preferences, which are difficult to
assess and can shift rapidly. Any shift in consumer preferences away from one or
more of the Company's product lines could result in lower sales as well as
obsolete inventory, both of which could adversely affect the Company's results
of operations, financial condition and cash flows. The Company is also dependent
on its customers continuing to carry and promote its various lines. Availability
of products can also affect the Company's ability to meet its customers' orders.
Sales of the Company's Teva(R) products are very sensitive to weather
conditions. Extended periods of unusually cold weather during the spring and
summer could adversely impact demand for the Company's Teva(R) line. The success
of the Company's expansion into new footwear categories, the addition of
products outside of footwear including apparel, accessories and related
products, and the overall success of the Company's ability to license the Teva
name to other products is highly dependent on the popularity and consumer
acceptance of the Teva brand in these new markets, as well as the Company's
ability to identify and properly manage acceptable licensees. In addition, the
Company's ability to secure and maintain all necessary financing for the
acquisition is dependent on the Company obtaining a final commitment letter from
the subordinated lender, and the final satisfaction to the senior and
subordinated lenders that no material adverse changes occur prior to funding. In
the event that either the senior lender or the subordinated lender does not
ultimately provide the necessary financing, the Company will need to find
alternative financing sources. There are no assurances that the Company would be
able to replace the contemplated financing on acceptable terms in a timely
manner. Given these uncertainties, prospective investors are cautioned not to
place undue reliance on such forward-looking statements. The Company disclaims
any obligation to update any such factors or to publicly announce the results of
any revisions to any of the forward-looking statements contained in the 2001
Annual Report on Form 10-K, the Quarterly Reports on Form 10-Q or this news
release.