Escalade, Incorporated reports the company’s seasonally slow first quarter got the year off to a satisfactory start. Net sales increased 66% to $29,103,000 due primarily to the inclusion of sales of Schleicher International AG, the German manufacturer and distributor of paper shredders that we now have a 65% ownership interest in. Net income inched up to a breakeven reflecting higher operating income partially offset by higher interest costs.

Sporting goods sales increased 5% to $11,179,000 as sales from prior year acquisitions more than offset slower sales of products with high 2002 year end retail inventories. The second quarter may continue to be a bit slow as our customers continue to work off their inventories, then, our last half should show the improvements of our increased product placement. We are continuing to focus on product development for our new billiard brand names and on sporting goods acquisitions that provide first year accretive earnings. Escalade Sports was awarded a fourth consecutive Sears “Partners in Progress” award for its 2002 performance.

Sales of office and graphic arts products increased 160% to $17,924,000 due entirely to the inclusion of Schleicher sales. Schleicher’s net income improved somewhat to a breakeven level while Martin Yale’s net income declined due primarily to lower sales, a $210,000 loss on the slower than expected startup sales of the new photo frame and gift line, and increased interest expense for the Schleicher acquisition. The sluggishness in the office products segment continues. Martin Yale and Schleicher will continue their cooperative product development to counter this downward trend.

During the first quarter, we purchased 5,000 shares of our common stock. We continue to have authorization from our Board of Directors to purchase up to three million dollars of our stock in the open market or through privately negotiated transactions, including shares already purchased, as a means of enhancing shareholder value.

                                Three Months Ended    Twelve Months Ended
                               Mar. 22,    Mar. 23,    Mar. 22,  Mar. 23,
                                 2003        2002        2003      2002

    Net Sales                   $29,103    $17,505     $167,053  $147,862
    Cost of Goods Sold           18,659     12,334      117,489   106,546
    Selling & Admin. Expense      9,932      4,982       31,279    22,771
    Operating Income                512        189       18,285    18,545
    Interest Expense               (448)      (121)      (1,277)   (1,163)
    Goodwill                        ---        ---          ---      (635)
    Other Income (Expense)          (51)      (175)          54      (438)
    Income (Loss)Before Taxes
       and Minority Interest         13       (107)      17,062    16,309
    Provision (Benefit) for Taxes     4        (39)       5,847     5,872
    Minority Interest Holders Share   2        ---            2       ---
    Net Income (Loss)                 7        (68)      11,213    10,437