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Non-Tech : MRKR Marker International GmbH -- Ignore unavailable to you. Want to Upgrade?

To: John R Resseger who wrote (2)	10/29/1999 1:55:00 AM
From: John R Resseger	Respond to of 10

Employees and Labor Relations As of March 31, 1999, the Company had 530 full-time and part-time employees. Subsequent to March 31, 1999, the Company reduced its headcount by 95 employees through a severance program. The severance program is part of an overall restructuring plan that the Company is in the process of implementing in order to reduce its cost structure. None of the Company's employees are unionized. In Germany, where approximately 335 individuals are currently employed by the Company, the employees are represented by a worker's council. As required by German law, one of the council members is paid by the Company to represent the interests of the workers. The Company believes that its relations with its employees are good. Properties The Company owns its 57,000 square foot combined headquarters and western United States distribution facility located in Salt Lake City, Utah, which was constructed in fiscal 1995. The Company's headquarters and distribution facility is for sale. The Company also leases an 8,600 square foot warehouse in Manchester, New Hampshire for use as its eastern United States distribution hub. The Company believes that the New Hampshire warehouse space is adequate to meet the needs of the Company's eastern customers. Marker Germany leases a 124,146 square foot office, research and development and manufacturing facility in Germany. Nearly all of the Company's binding products are manufactured at this facility which houses technologically advanced production and quality assurance machinery. The Company believes that the facility is well suited to meet the manufacturing needs of the Company and is presently utilized at approximately 65% of total capacity. The lease for the manufacturing facility expires in 2012. Marker Japan leases three offices in Japan from which sales and distribution activities are directed. These offices are located in the cities of Tokyo, Sapporo and Osaka and comprise approximately 3,500, 500 and 675 square feet, respectively. In addition, Marker Japan leases warehouse space for inventory storage in Tokyo and Osaka totaling approximately 12,900 and 1,075 square feet, respectively. Management believes that these facilities are suitable for the required operational needs of Marker Japan. The Company owned a 56,608 square foot snowboard manufacturing facility located on approximately five acres of land it owned adjacent to the Company's headquarters in Salt Lake City. On December 31, 1998, the Company sold the building and land that housed the Company's snowboard manufacturing operations for $3.1 million.