Empire of Carolina, Inc. designs, manufactures and markets a broad variety of consumer products including toys, plastic decorative holiday products, golf footwear and accessories and seasonal outdoor sports activity products including water slides, plastic pools, snow sleds, toboggans and snowboards. Its toy products include the classic Big Wheel Ride-Ons, Grand Champions collectible horses and Buddy L toy vehicles. Outdoor activity products include Crocodile Mile water slides, Water Works plastic pools, and Snow Works winter sleds. Holiday products include plastic figures and illuminated light displays. Golf footwear and accessories are manufactured and distributed through the subsidiary Apple Companies (Apple Sports, Inc. and Apple Golf Shoes, Inc.). Apple Companies manufactures and distributes Wilson and Wilson Staff golf footwear and other Wilson accessories, including gloves, head covers, umbrellas, pull carts and practice aids. The Company also has a license to manufacture and sell certain sports equipment and accessories under the brand name Mongoose. In November 2000, the Company and its wholly owned subsidiary, Empire Industries, Inc., filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. In February 2001, the Company consummated the sale of the outstanding stock of Dorson Sports, Inc., Apple Golf Shoes, Inc. and Apple Sports, Inc. In July 2001, the Company and two of its subsidiaries, Empire Industries, Inc. and Empire Toys (HK), Ltd., sold substantially their toy operations to Alpha International, Inc., including the Buddy L, Grand Champions, Big Wheels, Yo-Yo Balls, D-Cell Ride-Ons and Crocodile Mile Waterslides and Sprinklers product lines. Since November 2000, the Company has continued operations on a debtor-in-possession basis.

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