Collegiate Pacific released its earnings report for the three and six months ended Dec. 31, 2002.

Michael Blumenfeld, CEO, stated, “We are gratified that the increase in revenues and earnings continues to offer superior financial returns and comparisons. For the first time in our history we are able to report a profit during our slowest seasonal period — July to December. What is impressive about the quarterly and six month reports is that our order backlogs at December 31 rose 100% ($550,000 vs. $270,000) over year ago comparisons. Had we been able to process and ship the backlog increases during December, the operating results would have been materially stronger. We also incurred an abnormal level of legal and outside professional fees associated with our continuing search for acquisitions and investor relation activities and do not believe these expenses will be recurring in the months ahead.”

“For the six months, revenues increased 24% generating a net income increase of 145%. For the second quarter the seasonal loss was reduced as the result of higher revenues and margins and the EPS loss was lower by 20% to $.05 v $.06. Margins for both periods continued to improve as compared to year earlier results. Cash flows over the next 6 months are expected to accelerate which should allow the Company to enter our 2004 fiscal year (July 1) in a very strong financial position. We will continue to review the application of our financial resources for the benefit of our shareholders. Such applications may include increases in our cash dividend, stock buybacks and/or acquisitions.”

                        Three months ended      Six months ended
                              Dec. 31               Dec. 31
                      ----------------------- -----------------------
                         2002        2001        2002        2001
                      ----------- ----------- ----------- -----------
Revenues              $3,508,767  $2,848,447  $8,274,958  $6,663,069

Net Income             $(231,061)  $(253,105)    $48,109   $(231,061)
                      =========== =========== =========== ===========

Early Results for January Are Strong

“Our primary selling season (January to June) commenced in January with a surge in orders generating record order input and order backlogs. For the first time in our operating history, orders received for a single week reached $500,000, order backlogs through January were up 120% ($562,000 vs. $250,000) and January revenues were the largest ever recorded by the Company. A combination of creative marketing programs and the introduction of over 200 new products were the catalyst for these results. While it is impossible to know if the current surge in orders will continue throughout the quarter or year, January is historically the lowest revenue producing month in the January-June period.