GLOBE INTERNATIONAL LIMITED — Earnings Release 2003

Jan 5, 2003

ASX ANNOUNCEMENT

Update To The Earnings Guidance For The Six Months Ended 31 December 2002

MELBOURNE, 6 January 2003

The preliminary unaudited financial results for the six months to 31 December 2002 are currently being prepared. However, the weaker than anticipated trading activity of Globe International Limited (Globe) businesses, and other factors set out below, have necessitated a revision of the earnings guidance provided on 25 October 2002.

Globe now expects that the pre amortisation after tax earnings will be approximately \$4.1m or 1.0 cent per share for the six months to 31 December 2002, which compares to the 1.7 to 2.2 cents per share per the previous guidance. The lower earnings are principally derived from actual revenues in November and December being 14.5% lower than assumed in the previous guidance forecasts. Post amortisation earnings per share will be approximately \$0.7m or 0.15 cents per share.

Since the issuance of the prior quidance a number of specific factors in each of Globe's key markets have impacted on the results for the six months ended 31 December 2002. as follows:

North America $\bullet$

An unanticipated further deterioration in trading activity significantly impacted Globe's at once footwear and skate hardware business in December

International $\bullet$

Globe is providing \$1.4m for the potential non- recovery of receivables from distributors, mainly in Japan.

• Australasia

The late receipt of inventory from offshore suppliers resulted in a loss of business and a deferment in delivery of indent sales to early calendar 2003.

The recently appointed CEO, Mel Sutton, with the senior management team, is completing a review of all of Globe's businesses to establish a clear growth agenda for the future. As a result of the review and significant changes to be implemented. Globe is currently unable to provide a guidance of its earnings to 30 June 2003. The directors of Globe expect to issue revised earnings guidance for the full year as soon as it is available but no later than at the release of the six monthly results in early March.

Globe enters calendar 2003 as a profitable company with a strong balance sheet. Globe's proprietary and licensed brands are very well recognised, remain relevant and provide a sound basis for future growth. In particular there are significant opportunities to further leverage key brands into growth markets, particularly in apparel and surf footwear

For more information please contact

Mel Sutton CEO +613 8671 1724