LaCrosse Footwear, Inc. reported consolidated net income results for the third quarter ended September 27, 2003 increased to $2.1 million, or $0.36 per share, compared to consolidated net income of $0.9 million, or $0.15 per share in the third quarter of the prior year, an increase of 148%.

Consolidated net sales increased to $29.9 million, from $29.2 million in the third quarter of 2002, an increase of 2.6%. Gross margins improved to 31.4%, as compared to 30.5% in the third quarter of 2002, an improvement of 0.9%.
Operating expenses decreased to $7.0 million from $7.6 million in the comparable quarter last year, a reduction of 8.1%. Notes payable and long-term debt declined to $21.7 million from $26.5 million from a year ago, a decrease of 18.1%.

The LaCrosse brand retail channel increased net
sales from the third quarter of 2002 due to stronger sales in the
rubber boot categories, fueled primarily by sales of the Company's new,
patent-pending Alpha line of sporting and occupational rubber clad
neoprene boots. The net sales increase for the Danner(R) brand was
primarily related to improved product offerings for the hunting and
uniform markets. Net sales for the retail channel of the LaCrosse brand
improved 10.7%, and net sales for the Danner brand improved 7.1% over
the same period last year.

Net sales for the Safety and Industrial
channel of distribution declined by 24.5% from the third quarter of the
previous year due to a strategic reduction in sales of lower-margin
products, including a reduction in the number of products being offered
for sale in the private label and mass merchant markets, and the
strategic elimination of low-margin accounts.

Gross profit for the quarter ended September 27, 2003 increased to $9.4
million, or 31.4% of net sales, from $8.9 million, or 30.5% of net sales, for
the third quarter of 2002. Gross margins as a percent of net sales have
improved due to an increase in sales of new, more profitable products, the
elimination of lower-margin product lines, and the strategic elimination of
lower-margin accounts. The elimination of lower margin products included an
increase of $0.5 million in the reserve for slow-moving inventory, which
decreased margins by 1.7% for the quarter.

Operating expenses decreased $0.6 million, or 8.1%, to $7.0 million for
the quarter ended September 27, 2003 compared to $7.6 million for the same
period a year ago. The decrease in expenses resulted from consolidation of
LaCrosse Safety and Industrial operations from Racine, Wisconsin, to other
company facilities in Portland, Oregon, and La Crosse, Wisconsin.

Trade accounts receivable declined by $0.9 million from the same period a
year ago due to improved collection policies and practices. Prepaid expenses
and other assets declined by $1.9 million due primarily to the receipt of an
income tax refund due to tax provisions enacted as part of the Job Creation
and Worker Assistance Act of 2002. Goodwill and other assets declined by $1.0
million primarily due to the redemption of cash surrender value of certain of
our life insurance policies. Reduced receivables, prepaid expenses, other
assets, and cash generated from net income over the past year contributed to
the reduction of $4.8 million in notes payable and long-term debt from the end
of the third quarter of 2002.

“We're encouraged to see sales growth for the Company, which is being
driven by innovative new products in the retail channel and the management
team's continued focus on sales growth,” said Joseph P. Schneider, President
and CEO of LaCrosse Footwear, Inc. “Coupled with higher gross margins and
lower costs generated from consolidating our operations, our net income is
growing as well. We are also encouraged by dealer responses to the new Spring
2004 line of LaCrosse Quad Comfort (TM) work boots, and the new line of Danner
Agitator outdoor products,” he added.


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

    Condensed Consolidated Statements
     of Operations             Quarter Ended           Three Quarters Ended
                                (Unaudited)                (Unaudited)
                          Sept. 27,     Sept. 28,     Sept. 27,    Sept. 28,
                             2003          2002          2003         2002

    Net sales              $29,900       $29,155      $68,362       $71,951
    Cost of goods sold      20,509        20,267       47,378        53,031
    Gross profit             9,391         8,888       20,984        18,920
    Operating expenses       6,979         7,590       18,718        23,611
    Operating income
     (loss)                  2,412         1,298        2,266       (4,691)
    Non-operating
     expenses, net           (272)         (435)        (771)       (1,206)
    Income (loss) before
     income taxes            2,140           863        1,495       (5,897)
    Income tax benefit          --            --           --       (1,000)
    Net income (loss)
     before cumulative
     effect of accounting
     change                  2,140           863        1,495       (4,897)
    Cumulative effect of
     change in accounting
     principle - goodwill       --            --           --       (1,028)
    Net income (loss)       $2,140          $863       $1,495      $(5,925)
    Net income (loss) per
     common share, basic
     and diluted             $0.36         $0.15        $0.25       $(1.01)