Collegiate Pacific Inc. first fiscal quarter Earnings per share were 28 cents per fully diluted GAAP share 27% higher than the year ago results of 22 cents per GAAP share. Net sales of approximately $68 million for the quarter were approximately 4.4% better than last year, but fell short of the company's internal plan.

Commenting on the first quarter, Adam Blumenfeld, Chief Executive Officer, stated: “We are pleased this quarter met internal expectations with respect to earnings per share and exceeded internal expectations with respect to gross profit margin percentages, selling, general and administrative expenses and operating profits. The quarter was testament, in our view, to a heightened focus placed on delivery of income. Earnings per share set a Company record at 28 cents per fully diluted GAAP share — approximately 27% higher than the year ago results of 22 cents per GAAP share. Gross profit margins for the quarter were 35.3%, which was slightly better than plan, and 265 basis points higher than last year due to better selling discipline and pricing power. Selling, general and administrative expenses were more than $1.0 million under plan for the quarter and can be attributed to an increased focus on cost controls across the platform. Operating margin was 10.7% — slightly ahead of plan and 26% better than the year ago period. Net sales of approximately $68 million for the quarter were approximately 4.4% better than last year, but fell short of our internal plan. The company experienced softer than expected sales during the month of September stemming primarily from weaker than expected federal government sales, less than expected “at once” equipment sales towards the end of football season and longer than expected lead times on large bleacher and installation projects. Managerially, we are pleased that efforts to increase gross profit margins and limit spending allowed us to meet or exceed internal operating objectives despite slower monthly sales in September.”

In connection with closure of the SSPY transaction, the company also announced the previously contemplated executive management changes took effect today. This includes the resignation of Michael J. Blumenfeld as Chief Executive Officer. Mr. Blumenfeld remains as Chairman of the Board. Adam L. Blumenfeld, the former President of the company, has been named Chief Executive Officer. Terrence M. Babilla was appointed President of the company. Mr. Babilla was formerly the President and Chief Operating Officer of SSPY.

Going forward, we remain optimistic in our ability to accelerate top line growth although growth rates may fluctuate from quarter to quarter. This quarter, for example, had one less business day than last year's first fiscal quarter. In addition, Q1 FY06 was unusually strong with organic sales of 20%+ higher than the previous year. This made for a challenging net sales comparison.”

“We have today re-affirmed our FY07 EPS guidance of $0.52 – $0.64 per fully diluted GAAP share and see FY07 net sales in a range of $240 million to $250 million.”

Commenting on the SSPY Transaction, Mr. Blumenfeld stated: “We are also very pleased to have completed the acquisition of the remaining 27% of SSPY shares we did not previously own. After nearly 18 months of partial ownership of SSPY, completing the transaction opens the door for synergy-related work to commence between the two companies.

“First steps include migrating Collegiate Pacific's catalog businesses to SSPY's SAP operating platform and combining our assembly and distribution centers in Dallas, TX. There are, we believe, substantial opportunities in the areas of SKU reduction, cross-promotion of merchandise, leveraging marketing and sales experience, continued improvement in purchasing power, and additional efficiencies related to selling, general and administrative expenses.

“On a general level, the combination of Collegiate Pacific's sales and marketing acumen with SSPY's infrastructure, technology and distribution should be a win-win for both companies and their respective employees. I am pleased to introduce Terry Babilla – formerly the President and COO of SSPY – as President of Collegiate Pacific. Terry and his team of talented managers and employees will be a welcome addition to the organization.

“With the transaction now complete, we will internally measure our progress against a 3-year business plan that calls for more than $30 million in earnings before interest, taxes, depreciation and amortization, and earnings per fully diluted GAAP share of more than $1.00 before the end of this 36 month period. There will undoubtedly be operating peaks and valleys during this phase, however, every short term decision made will be in the interest of moving the company as efficiently as possible towards its 3-year business goals. Dedicated focus to this objective, we believe, is the best way to optimize franchise and shareholder value for all interested parties.”

               COLLEGIATE PACIFIC INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                             (Unaudited)
                     (In thousands, except share
                        and per share amounts)

                                                 Three Months Ended
                                                    September 30,
                                               -----------------------
                                                  2006        2005
                                               ----------- -----------

Net sales                                         $68,163     $65,275
Cost of sales                                      44,100      43,960
                                               ----------- -----------

     Gross profit                                  24,063      21,315

Selling, general and administrative expenses       16,803      15,736
                                               ----------- -----------

     Operating profit                               7,260       5,579
                                               ----------- -----------

Other income (expense):
  Interest income                                      47          46
  Interest expense                                 (1,234)       (999)
  Other income                                         37          25
                                               ----------- -----------

     Total other expense                           (1,150)       (928)
                                               ----------- -----------

     Income before minority interest in income
      of consolidated subsidiary and income
      taxes                                         6,110       4,651

Income tax provision                                2,312       1,650

Minority interest in income of consolidated
 subsidiary, net of tax                               503         426
                                               ----------- -----------

     Net income                                    $3,295      $2,575
                                               =========== ===========

Weighted average number of shares outstanding:
     Basic                                     10,229,165  10,124,387
                                               =========== ===========
     Diluted                                   13,782,914  14,068,662
                                               =========== ===========

Net income per share common stock - basic           $0.32       $0.25
                                               =========== ===========
Net income per share common stock - diluted         $0.28       $0.22
                                               =========== ===========
Dividends declared per share common stock          $0.025      $0.025
                                               =========== ===========