M3/M4 Trademark Litigation Settled By Agreement

February 13, 2007

Today, the participants in the M3 (Millennium 3) Vs. M4 (Millennium 4) trademark litigation proceedings announced a settlement binding all parties to an agreement in the resolution of this issue.

Under the terms of the agreement, Cold Sports Distribution Inc.and Elan will immediately cease all sales and advertising activity Worldwide. Cold Sports Distribution and Elan will honour all order commitments, and Elan will produce the snowboards, for these commitments.

As of December 31, 2007, all activity around the M4 name with respect to snowboards and related goods will cease and the M4 name will no longer be available.

This is the best solution available, in order not to penalize our dealers. It also allows everyone a graceful exit, and avoids costly litigation, all parties have agreed.

Shaun Morris of A. Mordo & Son Ltd. states