Letter to Crox Shareholders from the PCEO

June 18, 2007 10:06 am

If I were the CEO and Director of Crocs (CROX) this is the letter I think I would write to all of my shareholders:

Dear Crockers:

I was so happy for all of the directors and shareholders as I have seen so many making millions as the share price of Crocs moved up. Actually, as a group we, the insiders were able to sell $258,892,051 of shares over the last 12 months. On behalf of the following friends I would like to say a big, big thanks you to all of you who have propelled the stock price higher during the past 30 days:

Here is the amount of money these people have realized due to the sale of shares during the past 12 months:

Crocs Insider Trades

Recently, a total of $66,790,316 has been sold by this group. That really is terrific! Sure, insider-sales have picked up, but it is not because we feel that the stock has topped out. Rather, it is because we feel that we should be prudent and diversify our positions. We all met with a local financial planner and he feels it is best for us to put the monies into a diversified portfolio of mutual funds rather than have all of our money tied up in a single stock. Think about it, even though we will be paying a large tax on the profits, it really does make sense!

Crocs Insider Trades 12 months

Now, let me clear up a few concerns. There are several insiders who have taken down their position in the stock and some who have actually sold the majority of their total position. These decisions were not because the stock is too high or that they were concerned about the company. It was a simple result of dollars and cents. They had mortgages and credit card bills they needed to pay. They felt that since they are in a tax bracket, which will no longer afford them the opportunity to deduct these expenses on their tax returns that they would rather pay them off from the proceeds. Good news! Their debt has been eliminated which really takes a great load off of their shoulders. Once again, thanks!

As for me, I still support the stock. I see no reason why it cannot double from here. I am feeling generous and want to give back to those who have helped me….With all of the supporters and bulls looking for shares to go to $150, I want to make sure there are plenty of shares available for those who have not yet been able to capitalize. So selling a large portion of my shares is merely an altruistic move to allow these that do not have shares the ability to now have access at these inflated prices. Why should I be so greedy? Since I have sold about 600,000 shares and now have a smaller position (234,243 shares held directly) I fell much better that I have allowed others to enter the “Crox Club”. Now there are 600,000 more shares available for others to buy. I really feel good about this.

So, once again, thank you for the support. My family and I really appreciate it and even though the directors that sold have a much smaller position in the company, we will do our best to continually help create shareholder value. (this includes those directors that sold all of their direct positions)

Yours truly,

Andrew “Crox” Horowitz, Wannabee-PCEO (Pretend CEO)

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Follow Up from Post regarding Croc’s Shares overvalued and Croxcast Podcast

Poll Question: Is Crocs Correctly Valued?

(Disclosures: VERY SHORT)

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