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AUGUST 21, 2000
Dear Shareholder:
For your information we are enclosing a copy of the press release issued by your
Company on Thursday, August 10, 2000.
CUTTER & BUCK ALERTS SHAREHOLDERS TO SHORT SELLER POSITION
SEATTLE, WA -- August 10, 2000 - Cutter & Buck Inc. (Nasdaq: CBUK) management
today alerted its shareholders to a significant short position that may be
negatively impacting the price of its stock. Over the past 13 months the short
position has increased from 248,300 shares to 2,285,400 shares, and at July 14,
2000 constituted 22 percent of the outstanding shares.
"We have been hard pressed to find a similar position of this size and
duration," stated Martin Marks, President. "This may be happening simply because
investors are unaware that their shares are being lent to the short sellers."
Cutter & Buck's share price has declined, despite its performance in the fiscal
year ending April 30, 2000. In that period, net income increased 33% over the
prior year, to $10.6 million. Net sales increased 42% to $152.5 million.
"Large companies with big floats may not be affected by shareholders lending
their shares. But we believe that such lending in a smaller company like Cutter
& Buck may well work against the investor's hopes for price appreciation. We
have spoken to some of our shareholders to make them aware of the short position
and this practice," added Marks. "If other shareholders also have those
concerns, they can contact their agents and brokers and instruct them to stop
any lending activity."
Cutter and Buck designs and markets upscale sportswear and outerwear under the
Cutter & Buck brand. The Company sells its products primarily through golf pro
shops and resorts, corporate sales accounts and better specialty stores. Cutter
& Buck products feature distinctive, comfortable designs, high quality materials
and manufacturing and rich detailing.
NOTE: Transmitted on BusinessWire at 1:48 p.m. PDT August 10, 2000.
