The Sportsman’s Guide reported record results of operations for the quarter and year ended December 31, 2004, with earnings per share that were above the Company’s most recent guidance. In addition, the Company’s board of directors has declared a 3-for-2 stock split in the form of a 50% stock dividend.

The split shares will be distributed on April 15, 2005 to shareholders of record March 25, 2005. The Company has 4.7 million shares outstanding pre-split and will have just over 7 million following the distribution; however, the per share calculations in the results that are disclosed and discussed in the following release have not as yet been adjusted to reflect the split.

Sales for the quarter were $92.5 million, a 29% increase over the $71.7 million reported for the same period one year ago. The Company reported net earnings of $4.6 million, or $0.85 per fully diluted share for the fourth quarter, compared to $3.8 million, or $0.71 per share, reported for the three months ended December 31, 2003.

For the twelve months ended December 31, 2004, sales were $232.5 million, a 19% increase over the $194.7 million reported for 2003. The Company recorded net earnings of $7.6 million, or $1.43 per fully diluted share, for the year, compared to net earnings of $6.2 million, or $1.16 per share, for the twelve months ended December 31, 2003.

Company officials also noted that the fourth quarter of 2004 included 14 weeks of activity, compared to 13 weeks one year ago. The additional week resulted in approximately $4 million of incremental sales with minimal effect on net earnings in the quarter or for the year.

Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, “Our 2004 results showed annual sales up just under 20% and net earnings up 23%. These increases were due to our June 29, 2004 acquisition of The Golf Warehouse,, and the continuing growth of The Sportsman’s Guide base business, which had a 6% growth in sales in 2004 on a stand-alone basis and saw its percentage of Internet-related sales to total sales increase to approximately 42%, compared to 36% in 2003.

“Today, we are also pleased to announce the board’s decision to split the stock. It should result in greater liquidity for our shareholders and greater visibility for our stock.”

Binkley went on to note that the Company made significant progress toward paying down the debt incurred as a result of the TGW acquisition, ending the year with $8.6 million in cash and $5.0 million in long-term bank debt.

                 The Sportsman's Guide, Inc. and Subsidiaries
                     Consolidated Statements of Earnings

                     For The Three Months And Years Ended
                          December 31, 2004 and 2003

                    (In thousands, except per share data)

                             Three months ended
                                December 31,              Years ended
                                (unaudited)               December 31,
                             2004         2003         2004         2003
    Sales                  $92,453      $71,700     $232,462     $194,703
    Cost of sales           60,752       46,318      158,081      130,639
      Gross profit          31,701       25,382       74,381       64,064
    Selling, general and
     expenses               24,283       19,411       62,122       54,467
      Earnings from
       operations            7,418        5,971       12,259        9,597
    Interest expense          (193)          --         (361)          --
    Miscellaneous income
     (expense), net            (82)          38           (2)          24
      Earnings before
       income taxes          7,143        6,009       11,896        9,621
    Income tax expense       2,585        2,164        4,305        3,463
      Net earnings          $4,558       $3,845       $7,591       $6,158

    Net earnings per share:
      Basic                   $.97         $.80        $1.61        $1.29
      Diluted                 $.85         $.71        $1.43        $1.16

    Weighted average common
     and common equivalent
     shares outstanding:
      Basic                  4,717        4,834        4,719        4,785
      Diluted                5,333        5,437        5,323        5,290