LaCrosse Footwear, Inc. fourth quarter consolidated net sales were $31.7 million, up 7% from $29.8 million in the fourth quarter of 2005. As a result of the Company's quarterly reporting calendar, the fourth quarter of 2006 included five fewer business days compared to the same period of 2005 or 8% fewer days. For the full year 2006, consolidated net sales were $107.8 million, up 8% from $99.4 million in 2005.

Net income was $2.2 million or 36 cents per diluted share in the fourth quarter of 2006, up 9% from $2.0 million or 33 cents per diluted share in the fourth quarter of 2005. For the full year 2006, net income was $6.3 million or $1.02 income per diluted share, up 21% from $5.2 million or $0.85 per diluted share in 2005. The results in 2006 include stock-based compensation expense of $0.1 million or $0.01 per diluted share for the fourth quarter, and $0.5 million or $0.05 per diluted share for the full year 2006.

Sales to the work market were $16.0 million for the fourth quarter and $54.7 million for the full year of 2006, up 3% from $15.5 million and up 8% from $50.4 million, respectively, for the same periods of 2005. The growth in work sales reflects continued penetration into uniform markets, including the fire boot segment. Sales to the outdoor market were $15.7 million for the fourth quarter and $53.1 million for the full year of 2005, up 10% from $14.2 million and up 9% from $48.9 million, respectively, for the same periods of 2005. Growth in the outdoor market primarily reflects the success of innovative products introduced in recent years and continued penetration into the hunting and rugged outdoor boot markets.

The Company's gross margin was 39.6% of net sales for the fourth quarter of 2006, up from 36.6% in the same period of 2005, an increase of 300 basis points. The year-over-year gross margin improvement was the result of innovative products introduced in recent years with higher margins, a price increase in the fourth quarter, and fewer closeout sales.

LaCrosse's total operating expenses were $9.2 million in the fourth quarter of 2006, up 22% from $7.5 million in the same period of 2005. The increase primarily reflects expansion of the Company's product development, Asia sourcing, and sales teams, increased incentive compensation expense and stock-based compensation expense.

As a result of improved inventory management and increased demand, the Company reduced its inventory levels at December 31, 2006 by approximately $2.8 million or 11% from December 31, 2005. At the end of 2006, LaCrosse had cash and cash equivalents of $12.7 million, up 108% from $6.1 million at the end of 2005.

“We are pleased with our solid execution and financial performance for the fourth quarter and for the year,” said Joseph P. Schneider, president and CEO of LaCrosse Footwear. “During 2006, our sales and earnings growth was driven by the success of our new products, as we continued to increase our brand equity and capture market share in work and outdoor markets that are quality and performance driven. We were particularly honored with the selection of our new boots by both the Calgary and Chicago fire departments, and by the United States Marine Corps. These exceptional organizations demand leading-edge technologies and materials to support men and women who risk their lives and deserve the best equipment available.”

“During the year, we extended the tradition of quality and innovation associated with our brands by introducing new lines of high-performance socks and specialized safety apparel. We also continued to strengthen our gross margins, inventory management and balance sheet, more than doubling our cash position. At the same time, we made significant investments in our new Portland distribution center, sales, sourcing, and product development organizations, and IT infrastructure in preparation for future growth.”

“Moving into 2007, the customer response to our extensive new lines of Danner and LaCrosse boots has been very encouraging. Our strategy continues to focus on target markets where our great products, innovative technology and outstanding customer service create opportunities for sustainable and profitable growth. We are very excited about the opportunities for growth in 2007 and beyond.”


                   LaCrosse Footwear, Inc. and Subsidiaries
               Condensed Consolidated Statements of Operations
               (Amounts in thousands, except per share amounts)
                                 (Unaudited)

                             Quarter Ended               Year Ended
                        December 31,  December 31, December 31, December 31,
                            2006          2005         2006         2005

    Net sales             $31,735       $29,739     $107,798      $99,378
    Cost of goods sold     19,176        18,844       65,502       63,032
    Gross profit           12,559        10,895       42,296       36,346
    Operating expenses      9,217         7,543       33,462       27,737
    Operating income        3,342         3,352        8,834        8,609
    Non-operating
     income (expense),
     net                      (27)          (68)          88         (311)
    Income before income
     taxes                  3,315         3,284        8,922        8,298
    Income tax expense      1,090         1,239        2,578        3,064
    Net income             $2,225        $2,045       $6,344       $5,234

    Net income per common
     share, basic           $0.37         $0.34        $1.05        $0.88
    Net income per common
     share, diluted         $0.36         $0.33        $1.02        $0.85

    Weighted average number
     of common shares
     outstanding:
    Basic                   6,037         5,984        6,022        5,954
    Diluted                 6,240         6,172        6,213        6,166


    Supplemental Information

    Work Market Sales     $16,013       $15,501      $54,660      $50,436
    Outdoor Market Sales   15,722        14,238       53,138       48,942
                          $31,735       $29,739     $107,798      $99,378