To be sent by Leatherman to all applicable retailers, internet sellers, wholesalers, and government entities




[Leatherman Letterhead]


________, 2004
Certified Mail Return Receipt Requested

[To retailers, internet sellers, wholesalers, and government entities]

Re:       Judgment Against Leatherman Tool Group, Inc.

           On _____, 2004, the Los Angeles County Superior Court entered Judgment in favor of Plaintiffs and the Class against Leatherman Tool Group, Inc. ("Leatherman") in two consolidated class actions titled Colgan v. Leatherman Tool Group, Inc., Case No. BC247889 and Wilson v. Leatherman Tool Group, Inc., Case No. BC278713. The Superior Court has ordered Leatherman to give you this notice.

           The Court ruled that between April of 1997 and April 30, 2002, Leatherman violated California law by selling in California certain tools that were contained in packages on which there appeared an unqualified "Made in U.S.A." representation and by advertising certain of its tools in California with unqualified "Made in U.S.A." representations.

           The California law provides that an unqualified "Made in USA" designation may not be placed on merchandise offered for sale, or sold, in California, if the merchandise or "any article, unit, or part" of the merchandise "has been entirely or substantially made, manufactured, or produced outside of the United States."

           The Court found that some of the parts that are incorporated into Leatherman tools (except the Micra) undergo a portion of their manufacturing outside of the United States. Leatherman has modified the unqualified "Made in USA" designations on its tools' packaging to read "Made in U.S.A. of U.S. and foreign components." The packaging for the Micra continues to have an unqualified "Made in U.S.A." designation because none of its parts were subjected to foreign manufacturing processes. The Court's order applies to all Leatherman tools except the Micra.

           On ______, 2004, the Court ordered Leatherman to instruct all persons and entities who sell Leatherman tools in California to immediately cease using unqualified "Made in USA" representations, or represenations to that effect, with respect to selling, advertising, or promoting all of Leatherman's tools, except the Micra. This order includes all web-based advertising for sales to California residents.

           Leatherman has also been required by the Court to inform all persons and entities who sell Leatherman tools in California that if you have remaining in your inventory any Leatherman tools (except Micra) in packaging on which there appears an unqualified "Made in U.S.A." designation, you are required to return to Leatherman, at Leatherman's expense, such tools, and any packaging and Leatherman-provided advertising relating to such tools, unless the tools will not be sold in California. Leatherman will replace such tools with tools in Leatherman's modified packaging. If a return is necessary, please let us know in writing within 90 days of the date of this letter.

           The Superior Court Judgment and this notice to you only apply to Leatherman's unqualified "Made in U.S.A." representations on all Leatherman tools except the Micra or on the packaging for these tools. An unqualified "Made in U.S.A." representation is the words "Made in U.S.A.," "U.S.A." or similar words on the tool or the packaging. Neither the Judgement nor this notice applies to Leatherman's qualified statements on its tools or packaging, such as "Made in the U.S.A." of U.S. and foreign components."

           If you have any questions about this letter, please call your Leatherman representative.



                                                             Roger E. Bjorklund
                                                             Vice President of Marketing


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