Sport Chalet, Inc. held its annual meeting of shareholders last week, receiving approval for a number of initiatives that will see the company positioned as a more attractive investment opportunity.

The shareholders elected three directors to new three year terms through the 2008 shareholder meeting, approved a transfer of Class B shares by The Olberz Family Trust to Craig Levra, chairman and CEO, and CFO Howard Kaminsky, approved amendments to the company’s equity incentive plans, and ratified the appointment of Moss Adams LLP as the company’s new auditor. But the biggest move was the change to the company’s Certificate of Incorporation that increases the authorized number of shares from 17 million shares to 50 million shares.

The affirmative vote also resulted in the establishment of Class A and Class B shares. Each outstanding share of current Common Stock was converted to 0.25 share of Class B Common Stock. Sport Chalet's Class B Common Stock is now trading under the symbol SPCHB. The SPCH symbol was discontinued. On and after September 30, 2005, the Class A Common Stock will trade under the ticker symbol SPCHA.

As part of the approved recapitalization plan the Board declared a stock dividend payable on September 29, 2005 to stockholders of record on September 22, 2005. Under the terms of the stock dividend, each stockholder will receive seven shares of Class A Common Stock for each share of Class B Common Stock held on the record date.

Shareholders approved the share increase based on 46 million shares of Class A Common Stock, 2 million shares of Class B Common Stock, and 2 million shares of preferred stock.