Escalade, Incorporated reports record fourth quarter net sales of $53,889,000 and total net sales of $155,455,000, also a new high. Net income for the quarter declined 9% over the prior year resulting in full year net income of $11,138,000, virtually identical to last year’s $11,139,000.

Escalade Sport’s fourth quarter net sales increased 14% to $48,130,000 bringing year to date net sales to $126,745,000, a 7% gain over last year, primarily the result of earlier 2002 acquisitions. Net income increased 29% for the quarter and 25% for the year. Sporting goods shipments were somewhat throttled by delays due to the West Coast Longshoreman’s lockout and softer than forecasted sales by the company’s retail customers. This resulted in higher inventories for the company and its customers at the end of 2002, which may have an impact on the company’s seasonally slow first and second quarter 2003 shipments. Shipments from the Step and Murrey acquisitions may offset this somewhat. The company is continuing to focus on the integration of recent acquisitions and the development of new products for the Mosconi, Mizerak, and Murrey billiards brand names. Preliminary customer product placements indicate that 2003 may be another growth year for sporting goods with continuing market share gains.

Martin Yale’s sales of office and graphic arts products declined 5% for the quarter to $5,759,000 bringing year to date net sales to $28,710,000, a 4% decrease. Net income declined 66% for the quarter resulting in a 14% decrease for the year. The fourth quarter net income decrease was the result of inventory adjustments due to lower overhead costs and discontinued product, higher customer program costs, increased health care expense, and an additional $349,000 spent on the new photo frame and desk accessory line. The total expense for this new line was $873,000 for the year.

During the first quarter of 2003, Martin Yale increased its ownership of Schleicher International AG, a German manufacturer and distributor of paper shredders to 63%. Martin Yale is currently engaged in a tender offer to acquire all remaining Schleicher shares. The company believes it can increase sales and reduce costs by focusing on the complementing strengths of each company.

The company is continuing to review acquisitions as a means to increase shareholder value.

Escalade, Incorporated (Audited, In Thousands, Except Per Share Figures)

                                  4th Quarter Ended     Twelve Months Ended
                                  Dec. 28,   Dec. 29,    Dec. 28,  Dec. 29,
                                   2002       2001        2002      2001

    Net Sales                    $53,889    $48,175     $155,455  $148,853
    Cost of Goods Sold            40,565     35,680      111,164   106,921
    Selling & Admin. Expense       6,696      4,826       26,328    21,850
    Operating Income               6,628      7,669       17,963    20,082
    Interest Expense                (281)      (262)        (951)   (1,359)
    Goodwill                         -         (104)         -        (862)
    Other Income (Expense)           150         73          (70)     (430)
    Income Before Taxes            6,497      7,376       16,942    17,431
    Provision for Taxes            2,043      2,489        5,804     6,292
    Net Income                     4,454      4,887       11,138    11,139