The Sportsman’s Guide, Inc. reported sales for the quarter for the quarter ended December 31, 2002 were $66.8 million, an increase over the $62.5 million reported for the same period one year ago. The Company reported net earnings of $2.6 million, or $0.53 per fully diluted share for the quarter, compared to $3.3 million, or $0.68 per share, reported for the three months ended December 31, 2001.

The higher level of net income in the fourth quarter of 2001 reflected a reduction in the period and the year of the Company’s effective tax rate due to the reversal of a previously established deferred tax asset reserve. Earnings per share for the fourth quarter of 2001 would have been $0.56 on a fully taxed basis. Earnings from operations for the quarter were slightly higher in 2002 than reported in 2001. The increase in sales quarter over quarter was due primarily to higher Internet and catalog sales and enhanced catalog productivity.

For the twelve months ended December 31, 2002, sales were $180.3 million, an increase over the $169.7 million reported for 2001. The Company recorded net earnings of $4.0 million, or $0.80 per fully diluted share, for the year, compared to net earnings of $2.8 million, or $0.58 per share, for the twelve months ended December 31, 2001. Last year’s earnings per share would have been $0.49 on a fully taxed basis.

Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, “Our strong 2002 results were due to the continuing benefit of a more effective and profitable mail plan and stronger Internet related sales activity, approximating 30% of total sales for 2002, compared to 21% last year.”

Binkley also noted the Company ended the year with its strongest balance sheet ever, with $17.2 million of cash and no outstanding bank advances.

“In 2002 we continued to build on the turnaround that we saw in 2001. We realized considerable benefit from the steps we undertook to refocus the business and we continued to fine-tune our formula. We look forward to 2003, confident that we can continue to improve the business model and enhance shareholder value.” Binkley concluded.

                 
                         The Sportsman's Guide, Inc.
                              Income Statements

                                 (Unaudited)
                     For the Three Months and Years Ended
                          December 31, 2002 and 2001

                    (In thousands, except per share data)

                             Three months ended             Years ended
                                December 31,               December 31,
                             2002         2001          2002          2001

    Sales                  $66,785       $62,476     $180,290      $169,675
    Cost of sales           42,748        40,004      120,707       113,086
      Gross profit          24,037        22,472       59,583        56,589
    Selling, general and
     administrative
     expenses               19,488        17,990       52,958        52,250
      Earnings from
       operations            4,549         4,482        6,625         4,339
    Interest expense            (1)          (44)          (1)         (237)
    Miscellaneous income
     (expense), net           (376)         (208)        (297)         (349)
      Earnings before
       income taxes          4,172         4,230        6,327         3,753
    Income tax expense       1,525           979        2,310         1,000
      Net earnings          $2,647        $3,251       $4,017         $2,75