Riddell Bell Holdings, Inc. released operating results for the fiscal quarter ended July 2, 2005 with net sales for increased $70.1 million or 208.0% from the prior year comparable period. Net sales for the two fiscal quarters ended July 2, 2005 increased $129.1 million or 208.5% from the prior year comparable period. Team Sports net sales for the fiscal quarter increased $3.9 million or 11.5% compared to prior year comparable period. Team Sports net sales for the two fiscal quarters ended July 2, 2005 increased $3.9 million or 6.2% compared to prior year comparable period. Sales of Team Sports products increased in football protective products and game cloth.

RBH's president and CEO, Bill Fry, said, “We are very pleased with the results for the first half of 2005. We continue to see sales growth in both segments, which has been enhanced by our entry into new product categories like Powersports.”

Fiscal quarter gross profit was $39.1 million or 37.5% of net sales compared to $15.0 million or 44.6% of net sales in the prior year comparable period. For the two fiscal quarters ended July 2, 2005 gross profit was $70.3 million or 36.8% of net sales compared to $26.9 million or 43.5% of net sales in the prior year comparable period. Gross profit changed as a result of the inclusion of Individual Sports whose product margins typically yield a lower margin percentage than Team Sports products and services. Gross profit for Team Sports improved 1.1 percentage points to 45.7% due to lower shipping and distribution costs as a result of the restructuring of the Team Sports operations. For the two fiscal quarters ended July 2, 2005, the Team Sports gross profit remained flat at 43.5% as the benefits of certain restructuring initiatives were offset by temporary inefficiencies resulting from the movement and start up of the company's new helmet production line during the period as mentioned above.

RBH's operating income was $12.3 million for the second fiscal quarter of 2005, compared to $4.2 million for the second fiscal quarter of 2004. The company's net income was $3.5 million for the second fiscal quarter of 2005 compared to $1.2 million for the second fiscal quarter of 2004. Operating income for the first two fiscal quarters ending July 2, 2005 was $17.7 million compared to $6.6 million in the comparable period of the prior year. For the fiscal quarter and the two fiscal quarters ending July 2, 2005, adjusted EBITDA was $18.8 million and $31.8 million, respectively, as calculated under the terms of the company's credit agreements.

RBH's executive vice president and chief financial officer, Jeff Gregg, said, “During the second quarter we made substantial progress at improving our operational efficiency with the successful completion of our operating facility consolidation in the Team Sports business unit. We will continue to focus on operational efficiency improvements to help offset raw material cost pressures which continue to impact our gross profit.”

Balance Sheet Items

Net debt (total debt of $279.5 million less cash of $0.7 million) totaled $278.8 million as of July 2, 2005, an increase of $6.1 million during the fiscal quarter. The increase in net debt is primarily attributable to an increase in seasonal working capital requirements during the quarter. 

            RIDDELL BELL HOLDINGS, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (unaudited and in thousands)


                                                Fiscal Quarter Ended
                                              ------------------------
                                                July 2,     June 30,
                                                  2005        2004
                                              ------------ -----------

Net sales                                        $103,781     $33,698
Cost of sales                                      64,747      18,684
                                              ------------ -----------
 Gross profit                                      39,034      15,014

Selling, general and administrative expenses       24,603       9,725
Amortization of intangibles                         2,106       1,089
                                              ------------ -----------
 Income from operations                            12,325       4,200
Interest expense, net                               5,592       2,122
                                              ------------ -----------
Income before income taxes                          6,733       2,078
Income tax provision                                3,258         832
                                              ------------ -----------
Net income                                          3,475       1,246

Other comprehensive income
 Foreign currency translation                          31          --
                                              ------------ -----------

Comprehensive income                               $3,506      $1,246
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