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An analyst and top management from seven sector firms examine the Health & Fitness sector in this 37-page Health & Fitness Issue from The Wall Street Transcript, available at (212/952-7433) or www.twst.com

TWST: Could we start out with a quick overview of Delafield Hambrecht?

Mr. Jones: We are a management buyout of the Seattle office of WR Hambrecht. Our CEO J.D. Delafield and the CEO of WR Hambrecht, Bill Hambrecht, decided that it was best to spin out the office in mid-2002 based on the assessment that Seattle’s need for investment banking is relatively small and that a boutique firm would better serve it. The management team built up a small investment bank, which includes an investment banking arm, an equity research department and an institutional equity sales and trading desk. We are five analysts strong in research and possess about 40 years combined experience in institutional sales and trading. Our small group of investment bankers currently consists of four members.

TWST: Why the misunderstanding?

Mr. Jones: Because I think everyone looks at a Quiksilver as a fashion brand, as one that does not have staying power and that will experience a slowdown in cycles like other fashion brands or specialty retailers. In my view, Quiksilver is an underestimated force in the market. According to the NPD group apparel retailing is a 163 billion domestic market, and that figure easily pushes over 300 billion on a global basis. My projections for Quiksilver sales reach over 1 billion in 2004. I see the company as a rising wave in global apparel — a future Jones New York or Liz Claiborne in the making. Another misunderstood situation is Columbia Sportswear. Many investors I talk with say that the stock price is too expensive given the long-term prospects for the company. The more research and examination I do on Columbia, the more I believe that the veteran management team in place and the vision they have for the company are going to become more valued by the Street in the future. I think there definitely is a great opportunity there.

TWST: What is it going to take to change Street perception?

Mr. Jones: For Columbia, it is going to be a matter of putting some solid new numbers on the board in terms of what Sorel is doing and what Mountain Hardwear is going to do. The company will also need to consistently show that a reliance on domestic outerwear sales is part of Columbia’s past. Significant opportunities for Columbia Sportswear appear to be two areas. One is footwear, which management has really emphasized as part of the brand’s future. Footwear is one of the most rapidly growing sales areas of the company, and their products are designed to compliment their outdoor apparel offerings. The product lineup includes cold weather boots, rugged casual, brown shoe, trail running, boat, and sandals. In a short time frame, Columbia could ramp up distribution in various channels based on demand. The company’s success will depend on footwear product innovation. The other area of growth potential for Columbia is its push to be a much stronger brand in Europe. Right now, I believe the Columbia brand and its product portfolio is underpenetrated in Europe. While the domestic market has reached a saturation point with branded outerwear products, saturation characteristics are not that evident in Europe. The European market is fragmented with many local brands in outerwear and sportswear, providing Columbia with an opportunity to capture sales from products designed to have broader appeal. Columbia’s international sales have been growing at a double-digit rate, higher than their domestic sales.

This special issue includes:

1) Outdoor Recreation/Health & Fitness - In an in-depth (6,200 words) Analyst Interview, Raymond Jones, an Equity Research Analyst with Delafield Hambrecht, examines the outlook for the sector and shares specific stock recommendations.

2) CEO interviews (average 2,500 words). Top management of seven - sector firms examine the outlook for their firm and the sector. Firms include:

24 Hour Fitness Worldwide, eDiets.com, Escalade Sports, Jenny Craig, Lady of America Franchise Corporation, Medifast, Women First HealthCare, Inc.