LaCrosse Q2 Sales are Flat; Back in the Red

For the second quarter of 2004, LaCrosse reported consolidated net sales of $18.6 million, up slightly from $18.58 million in the second quarter of 2003.
For the first half of 2004, net sales were $42,326,000, up from $38,462,000 in
the same period of 2003. The consolidated net loss was $237,000, or $0.04
loss per share, in the second quarter of 2004, compared to net income of
$4,000, or $0.00 income per share, in the same period of 2003. For the first
half of 2004, consolidated net income was $858,000, or $0.14 income per share,
up from a consolidated net loss of $645,000, or $0.11 loss per share, in the
same period in 2003. Historically, LaCrosse has its strongest sales in the
second half of the year, while the second quarter is the Company's slowest
period.

The Company continued to improve its overall gross margin, which was
32.1% of net sales for the second quarter of 2004, up from 30.2% for the same
period of 2003. This margin growth was the result of sales of new, higher
margin products, including the LaCrosse® Quad Comfort(TM) line of
occupational boots. The improvement was partially offset by closeout sales of
inventory. Operating expenses increased modestly during the second quarter,
reflecting the Company's strategic decision to invest additional resources in
its product development and marketing efforts. Inventory decreased by
$3.4 million from the second quarter of 2003 as a result of asset management
improvements. Due to improved profitability and operating cash flows, the
Company reduced overall bank debt by $7.9 million from the same date a year
ago.

“We are encouraged with consumer and dealer responses to our new work and
outdoor boots, which incorporate cutting-edge technology into our trusted
brands and have helped drive the improvement in our gross margins,” said
Joseph P. Schneider, President and CEO of LaCrosse Footwear, Inc. “During the
second quarter, we saw better penetration into targeted segments of the
occupational market. We continue to leverage our powerful brands with new
product lines, technology innovation, compelling marketing initiatives and
enhanced customer service. We also remain committed to improving our gross
margins, controlling costs and increasing our profitability, as well as
strengthening our balance sheet. We are excited about our long-term growth
opportunities.”

                             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 26, June 28, June 26, June 28,

                                          2004     2003     2004     2003

    Net sales                           $18,600  $18,588  $42,326  $38,462

    Cost of goods sold                   12,630   12,981   29,123   26,869

    Gross profit                          5,970    5,607   13,203   11,593

    Operating expenses                    6,057    5,410   12,054   11,739

    Operating income (loss)                 (87)     197    1,149     (146)

    Non-operating expenses, net            (150)    (193)    (291)    (499)

    Income (loss) before income taxes      (237)       4      858     (645)

    Provision for income taxes               --       --       --       --

    Net income (loss)                     $(237)      $4     $858    $(645)

    Net income (loss) per common

     share, basic                        $(0.04)     $--    $0.15   $(0.11)

    Net income (loss) per common

     share, diluted                      $(0.04)     $--    $0.14   $(0.11)
    Weighted average shares outstanding:

    Basic                                 5,886    5,874    5,882    5,874

    Diluted                               5,886    5,892    6,065    5,874