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                                                                    Exhibit 99.1



DECKERS OUTDOOR CORPORATION REACHES SETTLEMENT IN UGG ARBITRATION

Settlement calls for a one-time fixed payment to replace all future earn-out
payments

GOLETA, Calif. (September 22, 1997) - Deckers Outdoor Corporation (Nasdaq: DECK)
today announced that it has settled its on-going arbitration with a group of
former shareholders of Ugg Holdings Inc. who had a 77% interest in Ugg before
Deckers acquired the company in 1995. In addition, the remaining former Ugg
shareholders who were not a party to the arbitration have agreed to accept the
same economic terms as those involved in the arbitration.

     Under the terms of the agreements, Deckers will make a final payment to all
former Ugg shareholders in the amount of $2.6 million on January 2, 1998. This
one-time lump sum payment replaces all future earn-out payments that were to be
paid through the year 2000 in accordance with the original agreement.

     "We are pleased that these arbitration proceedings have been resolved and
that the claims against Deckers have been dropped," said Doug Otto, chairman and
chief executive officer of Deckers. "We believe that their claims were without
merit and feel that the outcome is a favorable one. We view the financial
package as reasonable based on expected future payments due under the original
terms and on the costs associated with the arbitration. This settlement allows
us to put the dispute behind us and return our attention to successfully running
our business, especially at this important time of growth and renewed enthusiasm
in the Company."

     Deckers Outdoor Corporation designs, manufactures and markets innovative,
function oriented footwear and apparel, developed specifically for high
performance outdoor, sports and other lifestyle-related activities as well as
for casual use. The Company's products are offered under the Teva, Simple, Ugg,
Trukke and Picante brand names.