Escalade, Inc. reported net income for the fourth quarter of 2010 was $2.2 million, or 17 cents a share, up from $1.1 million or 8 cents, for the same quarter in 2009. Net revenues for the fourth quarter of 2010 were 7% higher than the same quarter last year.

Sales growth is a result of continued focus on product innovation and brand marketing. Net income for the full year 2010 was $6.1 million, or 46 cents per share, compared to net income of $1.7 million, or 13 cents, for full year 2009.

In the Sporting Goods segment, net revenue increased 11.7% in 2010 compared to 2009 with growth coming from most sales channels. The company continues to aggressively pursue opportunities to increase revenue through introduction of new products, expansion of product distribution, and increased investment in consumer marketing.

Net revenue in the Information Security and Print Finishing business declined 11.1% in 2010 compared to 2009 primarily due to the continued weakness in the global office products channel and the government channel. The Company has widened its product range to improve its opportunities in the information security and print finishing markets. Excluding the effect of changes in foreign exchange rates, 2010 sales were down 10.5% from 2009.

“We are pleased with the positive momentum we have built throughout 2010, including 7% top line growth for the fourth quarter. This increased revenue, coupled with operational improvements, has yielded fourth quarter EPS of $0.18, which is more than double the same period last year,” stated Robert J. Keller, president and chief executive officer of Escalade, Inc. “The Escalade team has a passion for driving top line growth through a balanced strategy of product innovation and brand marketing. Our goal is to be the market leader in each of our categories. With our debt level at a five year low, we have improved flexibility to invest in new product development and other strategic growth initiatives.”

Keller further said, “As a reflection of Escalade's ongoing focus to introduce new products and services to better meet the needs of our existing and potential customers, our historical description of the business conducted by Martin Yale Group as 'Office Products' has become too narrow and outdated. We increasingly have been strategically focused on expanding the Martin Yale business to assist businesses and governments with their high security needs for handling sensitive customer, employee and business documents and information, in addition to Martin Yale's traditional product offerings. Going forward, we are referring to this business segment as 'Information Security and Print Finishing' which we believe more accurately describes this line of business today and into the future.”

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

Three Months Ended Twelve Months Ended
------------------------ ------------------------
25 December 26 December 25 December 26 December
2010 2009 2010 2009
----------- ----------- ----------- -----------

NET SALES $ 31,185 $ 29,042 $ 120,656 $ 115,999

OPERATING EXPENSES
Cost of goods sold 23,662 22,017 83,475 82,250
Selling and
administrative 6,306 6,142 27,704 29,484
Long-lived asset
impairment -- -- -- --
Amortization 246 241 1,288 2,265
----------- ----------- ----------- -----------

OPERATING INCOME 971 642 8,189 2,000

OTHER INCOME (EXPENSE)
Interest expense (158) (135) (1,163) (1,665)
Other income 1,464 1,073 2,050 2,270
----------- ----------- ----------- -----------

INCOME BEFORE INCOME
TAXES 2,277 1,580 9,076 2,605

PROVISION FOR INCOME
TAXES 54 468 3,017 948
----------- ----------- ----------- -----------

NET INCOME $ 2,223 $ 1,112 $ 6,059 $ 1,657
=========== =========== =========== ===========

PER SHARE DATA
Basic earnings per
share $ 0.18 $ 0.08 $ 0.48 $ 0.13
=========== =========== =========== ===========
Diluted earnings per
share $ 0.17 $ 0.08 $ 0.46 $ 0.13
=========== =========== =========== ===========
Average shares
outstanding 12,775 12,654 12,726 12,632