<:s>We would like to propose the following topic for discussion at the Annual Meeting of the Mercury Sports Board of Directors this coming September. In light of the fact that sports equipment is experiencing a dramatic rise in use as a corporate premium item,
<:F
@Footnote@See Appendix B for data on use of sports equipment as corporate premium. Data source is indicated as Market Research, Inc. from a May, 1992 poll.
>
the New Business Group and the Alternate Channels Group have undertaken a three-month study to explore the feasibility and profit potential of acquiring one or more premium incentive concerns as a built-in outlet for Mercury Sports merchandise.
<:#2272,9360>Most premium incentive companies tend to specialize: either in type of premiums offered or in types of accounts served. For this reason, we suggest that
<+">Mercury Sports<-"> explore the acquisition of several companies based both here and internationally in order to maximize all areas of our product line. For example, as the table at left shows, Premium Sales of Oglala, WI does a volume business in monog
rammed athletic shoes. This would be an ideal outlet for our FlyWings running shoe, as well as our Baby FlyWings line for children. Premium Sales is an established vendor both in the U.S. and Canada, as well as in the Common Market and the Far East. Corp
orate Incentives of Canada specializes in garment bags and luggage for the discerning traveler.
@Subhead@<:t0>
@Subhead@<:#294,9360>Takeover Timing
<:#852,9360>The Committee would like to recommend that the Board of Directors proceed as quickly as possible with these acquisitions. Our revenue picture in sports equipment sales is strong right now, and we should be able to leverage this position to obtain financing