Escalade Earnings Slip on Sales Increase

Escalade, Incorporated net sales for the second quarter and first half of the current year increased 2.9% and 5.7%, respectively, compared to the same periods last year. Higher selling and marketing costs, primarily in the Sporting Goods business, resulted in lower net income for both the second quarter and first half of fiscal 2006 compared to the same periods last year. Earnings per share for the second quarter of 2006 were 8 cents per share compared to 17 cents per share last year and 18 cents per share for the first half of 2006 compared to 26 cents per share for the same period last year.

Net sales in the Sporting Goods business increased 16.1% in the second quarter of 2006 compared to the same period last year and when coupled with the strong growth in the first quarter, resulted in a 24.6% increase in net sales for the first half of 2006 when compared to the same period last year. Net sales in the second quarter and first half of 2006 were $33.2 million and $53.1 million, respectively. The increase in sporting goods sales relates primarily to acquisitions completed in 2006 — Woodplay (residential wood playground sets) and Carolina Archery Products (archery accessories) — as well as to growth in existing product lines. The Company’s acquisitions support the strategy to diversify its product lines, increase its customer base, develop specialty dealers and lessen the impact of large mass retailers. While the Company anticipates increased product placement of its Sporting Goods for the 2006 holiday shopping season, management believes that total 2006 sales to mass market retailers will be approximately even as compared to 2005.

The Company’s year to date gains in Sporting Goods revenues have been offset by higher sales and marketing costs, start-up costs associated with the new manufacturing plant built in Reynosa Mexico, and interest costs associated with recent acquisitions, resulting in lower profits from the Sporting Goods business compared to last year. Net income from Sporting Goods was $0.7 million for the second quarter of 2006 compared to $1.6 million for the same period last year. For the first half of 2006, net income was $0.8 million compared to $1.5 million for the same period last year. Management considers approximately $1.0 million of the increased selling and marketing costs to be non-recurring.

Office Product sales declined 16.9% in the second quarter of 2006 compared to the same period last year and net sales for the first half of 2006 declined 17.4% compared to the same period last year. More than half of the decline is attributed to the ongoing rationalization of low margin non-core products and unprofitable customers, especially in Europe. The remainder of the sales decline is due to exchange rate differences, increased competition in the paper shredder market and a general softness in the office products market. Despite the reduction in sales, net income from the Office Products business remained relatively unchanged from the prior year. Recent management changes in Europe are expected to help increase Office Products profitability.

While maintaining our focus on profitability, special emphasis has been directed toward increasing revenues. The Sporting Goods business is focused on maintaining our strong ties with mass market retailers while building our specialty dealer business and the Office Products business is focused on building market share. In conjunction with these efforts, we continue to strive for greater profitability by realizing synergies from recent acquisitions and improving the operating performance of our factories.

Management continues to be optimistic about 2006; expecting incremental gains in revenues and profits over 2005.

ESCALADE, INCORPORATED AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF INCOME
            (Unaudited, In Thousands Except Per Share Amounts)


                  Three Months Ended  Six Months Ended  Twelve Months Ended
                   ----------------- ----------------- -------------------
                   15 July  09 July  15 July  09 July   15 July   09 July
                     2006     2005     2006     2005     2006      2005
                   -------- -------- -------- -------- --------- ---------

NET SALES          $ 48,949 $ 47,551 $ 81,749 $ 77,333 $ 190,033 $ 208,842

OPERATING  EXPENSES
  Cost of goods
   sold              33,613   32,348   55,661   53,207   132,476   149,954
  Selling and
   administrative    12,379   11,304   20,784   18,479    38,119    38,788
  Restructuring          --       --       --       --        --     2,366
  Impairment of
   goodwill              --       --       --       --        --     1,312
                   -------- -------- -------- -------- --------- ---------

OPERATING INCOME      2,957    3,899    5,304    5,647    19,438    16,422

OTHER INCOME (EXPENSE)
  Interest expense     (810)    (494)  (1,064)    (780)   (1,766)   (1,614)
  Other income
   (expense)           (190)     162     (255)     407       254       125
                   -------- -------- -------- -------- --------- ---------

INCOME BEFORE
 INCOME TAXES         1,957    3,567    3,985    5,274    17,929    14,933

PROVISION FOR
 INCOME TAXES          (925)  (1,312)  (1,589)  (1,865)   (6,998)   (6,248)
                   -------- -------- -------- -------- --------- ---------

NET INCOME         $  1,032 $  2,255 $  2,396 $  3,409 $  10,928 $   8,685
                   ======== ======== ======== ======== ========= =========

PER SHARE DATA
  Basic earnings
   per share       $   0.08 $   0.17 $   0.18 $   0.26 $    0.84 $    0.64
                   ======== ======== ======== ======== ========= =========
  Diluted earnings
   per share       $   0.08 $   0.17 $   0.18 $   0.26 $    0.84 $    0.63
                   ======== ======== ======== ======== ========= =========
  Average shares
   outstanding       13,039   13,069   13,013   13,064    13,019    13,051