"We indeed have both challenges and opportunities facing our dynamic business as we continue to grow and diversify our HEELYS brand into important strategic areas such as apparel, backpacks and our exciting new foray into 'non-wheeled' footwear through the introduction of our Gamer by Heelys collection that will be available in stores for holiday '07."
"This 'non-wheeled' initiative along with our growing assortment of wheeled footwear styles and evolving technology gives HEELYS the unique opportunity to become a world class kids' sports-lifestyle brand."
Heelys' former Chairman, Patrick F. Hamner, will remain on the board and will serve as Senior Vice President of the company.