Phoenix Footwear Group, Inc.

1
Phoenix Footwear Group, Inc.
January, 2007
2
Safe Harbor Statement

• These forward-looking statements include, but are
  not limited to, statements relating to our
  anticipated financial performance, business
  prospects, new developments, new merchandising
  strategies and similar matters, and/or statements
  preceded by, followed by or that include the
  words "believes,'' "could,'' "expects,'
  "anticipates,'' "estimates,'' "intends,''
  "plans,'' "projects,'' "seeks,'' or similar
  expressions. We have based these forward-looking
  statements on our current expectations and
  projections about future events, based on the
  information currently available to us. These
  forward-looking statements are subject to risks,
  uncertainties and assumptions, including those
  described in the prospectus under the heading
  "Risk Factors,'' that may affect the operations,
  performance, development and results of our
  business. You are cautioned not to place undue
  reliance on these forward-looking statements,
  which speak only as of the date stated, or if no
  date is stated, as of the date of this
  prospectus.
• We undertake no obligation to publicly update or
  revise any forward-looking statements, whether as
  a result of new information, future events or any
  other reason, except as we may be required to do
  under applicable law. In light of these risks,
  uncertainties and assumptions, the
  forward-looking events discussed in this
  presentation may not occur.

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Our Brands
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Company Objectives

• Develop a core of operations centered around
  execution excellence rather than simply product
  categories
  
• Invest in activities and brands in a way that
  will create long term sustained value
  
• Make acquisitions that maximize expected value
  even at the expense of lowering near term
  earnings
  
• Reward leadership for delivering superior long
  term results
  

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Profitability and Growth Initiatives for 2007

• Growth Drivers
• Tommy Bahama Relaunch
• American Red Cross Footwear
• Wal- Mart and K Mart accessories expansion
• Profitability Drivers
• Inventory clearance completed by year end
• China office now operational to support sourcing
  shift
  
• Consolidation of 5 distribution facilities
  utilizing Third Party solutions
  

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Tommy Bahama Relaunch

• Well known brand with a parent committed to
  apparel growth particularly in women's
  
• 10 year license negotiated in 8/05 with the
  acquisition of Paradise Shoe for footwear and
  accessories
  
• Distribution includes company stores (60), better
  department doors (Nordstrom's) and specialty
  outlets (i.e., Garys)
  

7
Tommy Bahama Relaunch

• ACCOMPLISHED TO DATE
• New organization built Leadership/ Designers/
  Sales force
  
• New line designed and in production
• December first shipments / 2.5 mill in orders in
  first month
  
• Old inventory liquidated - third quarter charge

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Tommy Bahama Relaunch
New Tommy Bahama Contemporary relaxed styling Yo
unger appeal Supple burnished leathers Indian ma
nufacture
45 Gross Margin
Old Tommy Bahama Dated styling Older demographi
c Stiffer leathers Italian manufacture 24 Gro
ss Margin

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License entered into in late 2005 is now
operational Product designed and developed for
the healthcare market Sales force is actively e
ngaged in building distribution
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• Tightly focused cause marketing
• Healthcare market is large and fragmented
• Utilizing our proprietary Softwalk footbed
• 10,000 orders on hand for February delivery

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Accessories sales growth 38 in Q3
Gaining market share at Wal-Mart, Kmart and TSC
Tommy Bahama accessories to add to 07
Significant additional programs still pending
with majors
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Financial Overview
13
Trailing Twelve Month Net Sales
M
50 CAGR
14
Trailing Twelve Months EBITDA and EAT
EAT
EBITDA
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Third Quarter Earnings

• In excess of 1.2 mill loss in Tommy Bahama for
  Q3
  
• Accelerated design and development costs
• Inventory losses of 700k as old styles cleared
  to make way for new line
  

• Third Quarter EPS

0.13
0.12
.04
.09
Tommy Bahama
Pro Forma Q3 06
Reported
Q3 05
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Third Quarter Growth

• Organic growth totaled 8.8 for the quarter
• Royal Robbins reported its 11th consecutive
  quarter of growth at 28.6
  
• Our accessories business grew at a rate of 38.7
  for the quarter as we began to deliver on the
  previously announced new business wins
  
• Trotters and Softwalk both grew at modest rates
  and show strong backlogs entering the spring 07
  season

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Pending Developments

• A significant loss will generated in the 4th
  quarter as inventory cleanup in Tommy Bahama and
  Trask is completed
  
• The search committee of the Board is actively
  engaged with Korn Ferry and expects a CEO hire to
  be announced in the current quarter
  

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Credit Facility 58 mill Outstanding 62 mill
Capacity

• Revolving facility
• 24 mill outstanding
• 28 mill capacity
• Term Note 5 year 24 million outstanding
• Term loan 15 months 10 mill outstanding

• LIBOR plus 3.5
• LIBOR plus 4.0
• LIBOR plus 7.0

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Near Term Outlook 2007 2009

• Earnings Improvements as Tommy and Red Cross
  become positive contributors
  
• Underlying brands enjoying solid backlogs and
  positive 07 outlooks
  
• Accessories expected to continue market share
  gains
  
• Margin enhancements by way of sourcing and
  logistics improvements to come online in 2008
  
• Altama contract renewal uncertain and a risk for
  07 earnings
  
• SOX requirements will increase corporate costs
  considerably in 07