Net sales for The Sportsman's Guide's second quarter were $63.8 million, compared with $39.6 million reported for the same period in 2004. The quarter over quarter 61.2% increase in consolidated net sales was primarily the result of including net sales from The Golf Warehouse (“TGW”) and higher net sales from The Sportsman's Guide (“TSG”). The acquisition of TGW was effective June 29, 2004, making the third quarter of 2004 the first quarter for inclusion of TGW's net sales, operations and earnings. Net sales for TSG increased 9.1% when compared to the three months ended June 30, 2004 as a result of higher Internet sales. For the six months ended June 30, 2005, net sales were $128.4 million, a 52.1% increase over the $84.4 million reported for the first half of 2004.

Net earnings for the quarter were $2.5 million, or $0.31 per fully diluted share, a 102% increase over the $1.2 million, or $0.16 per fully diluted share, reported for the same period in 2004. For the first two quarters of 2005 net earnings were $4.8 million, or $0.59 per fully diluted share, compared to $2.5 million, or $0.32 per fully diluted share for the first six months of 2004. The earnings per share numbers for 2004 have been restated to reflect the Company's recently announced change in accounting policy for Buyer's Club revenues and adjusted to reflect the 3-for-2 stock split, distributed April 15, 2005.

Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, “We had a very strong second quarter due to a continuation of the strong, positive trends that have been affecting our business. We saw strong net sales at both TGW and TSG. TSG's nearly double digit sales growth was extremely positive and due to our continuing success in generating higher levels of Internet-related sales. The increase in total net sales and in the percentage of Internet-related sales is also the result of the continued strong performance of TGW. The impact of these factors once again pushed consolidated Internet-related sales for the second quarter to nearly 60% of total catalog and Internet sales.”



                 The Sportsman's Guide, Inc. and Subsidiaries
                     Consolidated Statements of Earnings
                                 (Unaudited)
                    (In thousands, except per share data)

                                     Three months ended   Six months ended
                                         June 30,             June 30,
                                      2005      2004      2005      2004
                                              (Restated)          (Restated)

    Net sales                        $63,778   $39,553  $128,356   $84,364
    Cost of sales                     44,334    26,724    88,878    57,190
      Gross profit                    19,444    12,829    39,478    27,174
    Selling, general and
     administrative expenses          15,476    10,929    31,948    23,275
      Earnings from operations         3,968     1,900     7,530     3.899
    Interest expense                     (82)       --      (146)       --
    Miscellaneous income
     (expense), net                       91        38       159        80
      Earnings before income taxes     3,977     1,938     7,543     3,979
    Income tax expense                 1,470       698     2,779     1,431
      Net earnings                    $2,507    $1,240    $4,764    $2,548

    Net earnings per share:
      Basic                             $.35      $.18      $.67      $.36
      Diluted                           $.31      $.16      $.59      $.32

    Weighted average common and common
     equivalent shares outstanding:
      Basic                            7,120     7,055     7,113     7,093
      Diluted                          8,175     7,919     8,120     7,985