Acquisitions Push Escalade’s Q2 Sales Up 55%

Escalade, Incorporated net sales in the second quarter increased 55% to $49.8 million and for the first half increased 59% to $78.9 million when compared the the same periods last year. Net income for the quarter and the first half was 35 cents, compared to 2002 a decline of 5 cents and 4 cents, respectively, due primarily to the one time gain of a building sale in the second quarter of 2002.

Sporting goods sales increased 13% to $26.4 million due mainly to the inclusion of one month's sales of the recently acquired North American Archery Group (now known as Bear Archery) and a full quarter of Murrey billiard sales. High year-end retail inventories resulted in lower purchases of some product categories, almost totally masking gains in the fitness and basketball product lines. Operating income, helped by Bear Archery, increased slightly, but was more than offset by increased interest and amortization expense. Now that the excess retail inventories are depleted, we believe that improved product placement will result in increased sales and income at Escalade Sports for our upcoming peak selling season and will minimize the effect of costs such as amortization and interest expense, even excluding the additional sales and income we expect from Bear.

Sales of office and graphic art products increased 164% to $23.4 million due entirely to the inclusion of Schleicher International AG's net sales, which were helped by favorable exchange rates and solid market share gains. After excluding the building sale in 2002, Martin Yale's net income declined 10% due to the inclusion of a slight loss at Schleicher (which is a substantial improvement over 2002), softer domestic sales, and higher interest expense due to the Schleicher acquisition. During the quarter, Martin Yale completed its tender offer for Schleicher, acquiring just over 97% of all shares, and has now started a process that should result in ownership of 100% of the shares by the end of August 2003. Once wholly owned, we will convert Schleicher to a private company and we can then explore synergistic opportunities. The two companies have begun a sales co-operation that has already resulted in increased sales abroad and will result in increased domestic sales later this year.

During the quarter, we discontinued the exploration of the new Hardwood Creek photo frame and gift line. The net result was a $47,000 gain for the quarter after selling the trademark and adjusting for inventory write-offs and expenses.

Escalade, Inc. increased its ownership in Sweden Table Tennis AB to 50% during the quarter. Including Escalade International, we now have two sporting goods joint ventures in Europe that have turned around and are in their second year of profitability. These two companies contributed 3 cents per share to our earnings this quarter.

During the quarter, we acquired an additional 121,080 shares of our stock bringing year to date purchases to 126,080 shares at an average cost of $14.59 per share, leaving $1,161,000 of the $3,000,000 previously authorized capital available for repurchase of our shares through the open market or negotiated transactions as a means of continued enhancement of shareholder value.

Unaudited, In Thousands, Except Per Share Data

                         THREE MONTHS       SIX MONTHS       TWELVE MONTHS
                             ENDED             ENDED             ENDED
                        July 12, July 13, July 12, July 13, July 12,  July 13,
                         2003     2002     2003     2002     2003      2002

    Net Sales          $49,837  $32,202  $78,940  $49,707  $184,688  $152,305
    Cost of Goods
     Sold               31,160   21,579   49,819   33,913   127,070   109,325
    Selling, and
     Administrative
      Costs             14,389    6,635   24,321   11,617    39,033    23,761
    Operating Income     4,288    3,988    4,800    4,177    18,585    19,219
    Interest Expense      (652)    (246)  (1,100)    (367)   (1,683)   (1,003)
    Other Income
     (Expense)              11      326      (40)     151      (260)      (62)
    Amortization of
     Goodwill               --       --       --       --        --      (332)
    Income Before Taxes
     and Minority
     Interest            3,647    4,068    3,660    3,961    16,642    17,822
    Provision for Income
     Taxes              (1,399)  (1,465)  (1,403)  (1,426)   (5,782)   (6,360)
    Minority Interest
     Holders Share in
      Subsidiary Net
       Loss                  6       --        4       --         4        --
    Net Income          $2,254   $2,603   $2,261   $2,535   $10,864   $11,462

    Basic Earnings Per
     Share               $0.35    $0.40    $0.35    $0.39     $1.67     $1.78
    Diluted Earnings
     Per Share           $0.34    $0.39    $0.34    $0.38     $1.64     $1.73