LaCrosse Footwear, Inc. reported consolidated net income for the second quarter was $0.004 million, or $0.00 per share, compared to a loss of $3.8 million, or $0.64 per share in the second quarter of the prior year. Consolidated net sales decreased 6.9% to $18.6 million from
$20.0 million in the second quarter of 2002.

Gross margins improved to 30.2%, as compared to 20.7% in Q2 2002, an improvement of 950 basis points. Operating expenses decreased 27.2% to $5.4 million from $7.4 million in the comparable quarter last year.

Inventories decreased to $25.0 million from $29.2 million from a year ago, a decrease of 14.2%. Notes payable and long-term debt declined to $11.3 million from $19.9 million from a year ago, a decrease of 43.1%.

The LaCrosse retail channel experienced an increase in net sales from the second quarter of 2002 due to strong sales in the recreational hunting and rubber boot categories, fueled primarily by sales of the Company's new Alpha line of sporting and occupational rubber boots. The net sales increase for the Danner(R) brand was primarily related to improved product offerings for niche hunting, occupational and uniform markets. Net sales for the retail channel of
the LaCrosse(R) brand improved 7.7%, and sales for the Danner brand improved 13.4% over the same period last year.

Net sales in the Safety and Industrial channel of distribution declined from the second quarter of 2002 as a result of a continued soft economy and a strategic reduction in the number of products being offered for sale particularly in the private label and mass merchant markets. The decrease in net sales was due to 37.0% decrease in the Safety and Industrial channel of LaCrosse and Rainfair(R) brand products.

Gross profit for the quarter ended June 28, 2003 increased to $5.6 million, or 30.2% of net sales, from $4.1 million, or 20.7% of net sales, for the second quarter of 2002. Gross margins as a percent of net sales have improved due to an increase in sales of new, more profitable products, and a deduction in sales of discontinued products combined with the elimination of lower-margin product lines.

Operating expenses decreased $2.0 million, or 27.2%, to $5.4 million for the quarter ended June 28, 2003 compared to $7.4 million for the same period a year ago. The decrease is a result of management's focus on transforming the Company from a fixed-cost manufacturing model to a brand-driven, variable expense model. Specifically, the decrease is a result of the absence of one-time charges from the prior year ($1.3 million), a one-time credit due to the elimination of the retiree health care liability ($0.3 million), reductions in sales commissions and distribution costs associated with the reduced sales volume, and consolidation of the Retail and Safety and Industrial operations in Portland, Oregon. During the second quarter of 2002, the Company recorded a $1.0 million charge related to relocating the Safety and Industrial division.

Inventories as of June 28, 2003 have declined by $4.1 million as compared to inventories at the end of the second quarter of 2002 as a result of a focused inventory reduction plan and improved inventory management. Trade accounts receivable declined by $2.2 million from the same period a year ago due to improved collection practices. Reduced receivables and inventories contributed to the reduction of $8.6 million in notes payable and long-term debt from the end of the second quarter of 2002.

“Top line sales were not where we wanted them to be this quarter although we were pleased that margins were significantly better while our expenses, inventories, and debt were down,” said Joseph P. Schneider, President and CEO of LaCrosse Footwear, Inc. “We've proven that the Company can manage expense in a variety of business climates, now we're singularly focused on growing sales through the introduction of compelling products. The new, patent-pending Alpha sporting and occupation product from the LaCrosse brand has been featured in numerous articles in the trade and consumer press. Our Safety and Industrial division will also introduce several new products under the Rainfair and LaCrosse brands this Fall to broaden our product offering and drive new sales,” he added.

                           LaCrosse Footwear, Inc.
                           SELECTED FINANCIAL DATA
               (Amounts in thousands, except per share amounts)

    Condensed Consolidated
     Statements of Operations   Quarter Ended             First Half Ended
                                (Unaudited)                 (Unaudited)
                           June 28,      June 29,     June 28,       June 29,
                             2003          2002         2003           2002

    Net sales              $18,588       $19,975      $38,462       $42,796
    Cost of goods sold      12,981        15,849       26,869        32,764
    Gross profit             5,607         4,126       11,593        10,032
    Operating expenses       5,410         7,436       11,739        16,019
    Operating income (loss)    197        (3,310)        (146)       (5,987)
    Non-operating expenses,
     net                      (193)         (467)        (499)         (773)
    Income (loss) before
     income taxes                4        (3,777)        (645)       (6,760)
    Income tax benefit          --            --           --        (1,000)
    Net income (loss) before
     cumulative effect of
     accounting change           4        (3,777)        (645)       (5,760)
    Cumulative effect of
     change in accounting
     principle - goodwill       --            --           --        (1,028)
    Net income (loss)           $4       $(3,777)       $(645)      $(6,788)
    Net income (loss) per
     common share, basic
     and diluted             $0.00        $(0.64)      $(0.11)       $(1.16)