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led to great competition on features and price. It is our experience that even a few dollars 

 difference in cost can affect a consumer's choice in product. 



Mountainsmith takes its role in the outdoors seriously. Patrick Smith, our founder and the 

 creator of many of our products, is an avid outdoorsman. This company started in his 

 garage 17 years ago. When I announced at a staff meeting last fall that 1 was coming out 

 here to talk to some of the Colorado delegation about adequate Forest Service trails funding 

 and in support of recreation fee pilot projects in the Interior Appropriations bill, the 

 Mountainsmith staff cheered. They were very proud and saw it as positive that the 

 company was playing a role in outdoor recreation issues. We have expressed that role 

 through several other initiatives that mesh with our company's and user's beliefs, needs, 

 and wants. 



An innovative program that we're spearheading is a marketing program associated with the 

 Continental Divide Trail. Congress designated the trail in 1978, but it is only about 70% 

 complete. The trail would stretch 3 100 miles along the Continental Divide from Canada to 

 Mexico, providing spectacular views and incredible but challenging hiking, mountain 

 bicycling, horse back riding and cross country skiing opportunities. The last great border to 

 border trail, we hope it will be a western version of the Appalachian Trail. 



Mountainsmith sees trail development and access directly affecting and benefiting our 

 customers, and so we have developed, with the Continental Divide Trail Alliance (CDTA), 

 a program that will generate cash for construction of the trail, while increasing public 

 awareness, support and volunteerism. The CDTA is an organization devoted to working 

 with all of the federal and state land agencies involved with, or affected by, the trail to 

 complete the trail's development. It organizes volunteers to work on the trail, and hopes to 

 become much like the Appalachian Trail Conference or Appalachian Mountain Club — 

 organizations that are extremely active in physically maintaining, through volunteer labor, 

 the Appalachian Trail and facilities associated with it. The money raised by 

 Mountainsmith's efforts will complement funding provided by the National Forest 

 Foundation and other outdoor recreation companies. 



Our program works as follows: we take one of our best-selling expedition packs ~ the 

 Crestone - and offer it with a special top pocket/lumbar pack. This is embroidered with a 

 large CDTA emblem and is offered through our normal retail distribution. It sells for a $30 

 premium above the cost of the normal Crestone pack. All $30 is donated to the CDTA; 50% 

 in the name of the participating retailer; 50% in the name of Mountainsmith. Through this 

 innovative program everyone is served: 



1) new money is generated for the Continental Divide Trail; 



2) the consumer willingly makes that donation and is recognized for doing so for 

 the life of the pack by her/his peers on the trail ; 



3) it increases the exposure of the trail, attracting more attention, volunteers and 

 support; 



4) the retailer is willing to carry and sell a more expensive pack - and forgo normal 

 mark-up - because of the increased traffic the pack will attract and because of 

 the positive affinity all of his customers have for a business that is participating 

 in protecting access and with creating another natural asset; and 



5) Mountainsmith benefits because we will sell more packs and differentiate 

 ourselves from the other pack companies by investing in this project. 



