LaCrosse Q3 Sales and Income Climb Double-Digits

LaCrosse Footwear, Inc. third quarter of 2007 net sales were $36.9
million, up 12% from $32.8 million in the third quarter of 2006. Net
income was $3.3 million or 52 cents per diluted share in the third
quarter of 2007, up 30% from $2.5 million or 41 cents per diluted share
in the third quarter of 2006.

Sales
to the work market were $15.1 million, up 20% from $12.5 million. Sales
to the outdoor market were $21.8 million, up 7% from $20.3 million for
the same period of 2006.

For the nine months, sales were $85.5
million, up 12% from $76.1 million in the same period of 2006. Net
income was $4.9 million or 77 cents a share, up 19% from $4.1 million,
66 cents.

For the nine months, sales to the work market were $43.7 million,
up 13%. Year-over-year growth in work market sales reflects continued
penetration into a variety of general and specialized work and uniform
boot markets.

For the nine months, sales to the outdoor market
were $41.8 million, up 12%. Year-over-year growth in outdoor market
sales primarily reflects increased penetration into the cold weather
and rugged outdoor boot markets.

LaCrosse continued to maintain
strong gross margins. For the third quarter, its gross margin was 39.1%
of net sales, up from 38.6% in the same period of 2006. For the nine
months, gross margins were 39.5% of net sales, up from 39.1%.

LaCrosse’s
total operating expenses were $9.5 million or 26% of net sales in the
quarter, compared to $8.7 million or 27% a year ago. While operating
expenses grew at a slower rate than net sales, the year-over-year
absolute dollar increase primarily reflects increased investment in
sales and product development.

At the end of the quarter,
LaCrosse had cash and cash equivalents of $4.7 million, up 87% from
$2.5 million at the end of the third quarter of 2006. LaCrosse’s
inventory at the end of the quarter increased 8% versus the year-ago
period, a substantially lower increase than its sales growth, and
reflects improved inventory management.

“We are pleased with our
execution and financial performance for the third quarter, despite the
unseasonably warm weather conditions in the eastern US, which certainly
impacted our outdoor boot sales throughout much of the quarter,” said
Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. “Our
strong overall sales growth continued to be driven by the success of
our new fall product lines. At the same time, we maintained our strong
gross margins, leveraged our operating expenses as a percent of sales,
managed our inventory better and increased our profitability.”

“Our
continued investment in developing premium products, infused with
innovative technology and backed by outstanding customer service, is
paying off and creating new opportunities for sustainable and
profitable growth. One of our key strategic goals is to become less
dependent on seasonality and changing weather conditions. As we
progress toward this long-term objective, we are encouraged by the very
positive customer response to our extensive new spring lines of Danner
and LaCrosse products, with exciting new boots for every climate, every
season and every part of the day, on the job or in the field.”