K-Swiss Inc. designs, develops and markets an array of athletic footwear for high performance sports use, fitness activities and casual wear under the K-Swiss brand. It also designs and manufactures footwear under the Royal Elastics and the Palladium brands. Royal Elastics, a wholly owned subsidiary, is a manufacturer of slip-on, laceless footwear. Palladium SAS (Palladium), a 57% owned subsidiary, is a designer, developer and marketer of footwear for adventurers for all terrains. In July 2008, the Company purchased a 57% equity interest in Palladium.