Sportsman’s Guide Q2 Income Jumps 23% on 2.3% Sales Increase

The Sportsman's Guide reported sales for the second quarter 2004 were $38.9 million compared to the $38.0 million reported for the same period one year ago. The Company reported net earnings of $797,000, or $0.15 per fully diluted share for the quarter, a 23% increase when compared to the $646,000, or $0.12 per fully diluted share, reported for the three months ended June 30, 2003. The increase in net earnings and earnings per share from last year's second quarter was due primarily to higher Internet-related sales. Internet-related sales for the second quarter of 2004 were just over 43% of total catalog and Internet sales, setting an all time record. Internet-related sales as a percentage of total catalog and Internet sales were approximately 36.5% for the second quarter of 2003.

Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, “Our second quarter showed continued growth in Internet related sales as a percentage of total sales, contributing to higher levels of net income and earnings per share.”

Total catalog circulation for the second quarter was 9.9 million catalogs, compared to 9.2 million during the second quarter of 2003. The Company mailed eight catalog editions, consisting of three main catalogs, three Buyer's Club Advantage(TM) catalogs and two specialty catalogs during the quarter ended June 30, 2004, compared to seven catalog editions for the same quarter in 2003.

                       The Sportsman's Guide, Inc.
                   Consolidated Statements of Earnings
                               (Unaudited)

                For The Three Months And Six Months Ended
                          June 30, 2004 and 2003

                  (In thousands, except per share data)

                          Three months ended          Six months ended
                               June 30,                   June 30,
                           2004         2003         2004         2003
  Sales                  $38,861      $38,041      $83,455      $81,790
  Cost of sales           26,724       26,097       57,190       55,649
    Gross profit          12,137       11,944       26,265       26,141
  Selling, general and
   administrative
   expenses               10,929       10,902       23,275       23,632
    Earnings from
     operations            1,208        1,042        2,990        2,509
  Miscellaneous income
   (expense), net             38          (33)          80           (4)
    Earnings before
     income taxes          1,246        1,009        3,070        2,505
  Income tax expense         449          363        1,106          902
    Net earnings           $ 797        $ 646       $1,964       $1,603

  Net earnings per share:
    Basic                   $.17         $.14         $.42         $.34
    Diluted                 $.15         $.12         $.37         $.31

  Weighted average common
   and common equivalent
   shares outstanding:
    Basic                  4,703        4,748        4,728        4,753
    Diluted                5,279        5,249        5,324        5,184