Sport Supply Group, Inc. announced it has executed a definitive
agreement with an affiliate of Los Angeles-based investment firm Andell
Holdings, LLC to sell 1.83 million original issue shares of the
company's common stock for $10 per share.

The company's stock last closed at $9.98 per share on July 25, 2007.
The $18.3 million private placement is expected to close within the
next few days, subject to customary regulatory and closing conditions.
The Company has granted Andell certain rights related to the
registration of their shares for resale. The company has also agreed,
at the request of Andell, to nominate its designee to a seat on the
Company's Board of Directors, and otherwise to provide Andell with
certain board observer rights. Proceeds from the cash infusion will be
used to repay outstanding bank debt and expenses of the transaction.

“We are delighted to have entered into this agreement with Andell.
Andell, together with its executives, have the pedigree, capital
resources and rich investment history that will help further cultivate
our vision of optimization, execution and growth,” said Sport Supply
Group Inc. Chairman and CEO Adam Blumenfeld. “The Company has engaged
in a number of initiatives aimed at increasing cash flows and reducing
debt since the November 2006 closure of our SSG acquisition including
the improvement in the collection of receivables, and reduction of
inventories through the consolidation of facilities and elimination of
SKUs. These efforts have yielded a $14.5 million decrease in
outstanding bank debt in the last seven months. Upon closure of this
transaction, bank debt will decrease by an additional $18.0 million to
approximately $5.0 million, and we believe the Company will have
nothing drawn against its $55.0 million credit facility by fiscal year
end. In fact, we anticipate a surplus of cash on-hand by June 30, 2008.
As a result of this transaction, we estimate the Company will save
close to $1.5 million in interest expense in Fiscal 2008, and the
slight dilution that results – estimated at $.03 in FY08 – is well
worth the trade off for a de-leveraged balance sheet, financial
flexibility and a resourceful new business partner.”

Andell Holdings Chairman and CEO Andrew Hauptman said, “We couldn't be
more excited about our investment in Sport Supply Group. Sport Supply
Group's business of providing best in class products and distribution
in the sports equipment supply chain fits in well with Andell's focus
on active lifestyles and sports related businesses. We look forward to
working with Adam and his management team to continue growing the

The Company anticipates it will report its year-ending financial
results for Fiscal 2007 (ended June 30, 2007) during the first week of
September 2007. The Company intends to discuss annual guidance for FY08
at that time.