True Temper Sees Benefit from Increase in Q2 International Sales

True Temper Sports, Inc. announced that net sales for the second quarter increased 8.7% to $32.5 million from $29.9 million during the second quarter of 2002. Net income for the second quarter increased slightly to $3.8 million from $3.7 million in the second quarter of 2002. Adjusted EBITDA for the second quarter increased 9.4% to $11.2 million from $10.3 million in the second quarter of 2002. Net cash provided from operations for the second quarter increased by $0.6 million to $6.3 million from $5.7 million in the second quarter of 2002.

In his comments about the Company's performance, Scott Hennessy, President and CEO said, “Though our industry and the global economy in general continue to be a challenge, we were pleased to record our fourth consecutive quarter of improved sales and operating performance. Our second quarter sales increased on the strength of new premium lightweight steel shaft sales, along with strong momentum for our new Grafalloy Blue(TM) graphite shaft. These two factors, coupled with the continued expansion of performance sports revenues from sales of bicycle components and hockey stick shafts, contributed to the year over year growth. In addition, we benefited from improved foreign currency exchange rates in all three of the major golf markets outside the United States: Japan, the United Kingdom and Australia. When combined with increased shipments into China to support the expanded club assembly operations in that region, our total international sales increased by 23% when compared to the second quarter of 2002.”

Mr. Hennessy continued, “While our operating income did increase between quarters, our gross profit line was negatively impacted by several factors during the second quarter, including increased natural gas prices, increased costs for employee healthcare benefits, and the impact of a ratification bonus paid to our hourly employees represented by the United Steelworker's of America. This ratification bonus was related to a new four year collective bargaining agreement that extends through June 30, 2007. Excluding the impact of this ratification bonus, gross profit as a percentage of net sales remained relatively flat at 43.0% in the second quarter of 2003 from 43.4% in the second quarter of 2002, as we offset some of the negative impact described above with favorable leverage on fixed manufacturing costs and the benefit of improved foreign currency exchange rates. In addition, we trimmed our SG&A spending by $0.2 million between the second quarters of 2002 and 2003 as we carefully managed our promotional expenditures and other related costs.”

In his comments about the Company's future performance, Mr. Hennessy said, “As we entered 2003, the overall retail golf industry was sluggish, and a late breaking, wet spring only added to this difficult environment. While we have seen no definitive signs of a sustained recovery, our incoming order rates have remained positive due to our new golf product introductions and the momentum building behind our performance sports sales in the hockey and bicycle component markets. We believe these factors will enable us to post revenue and profitability growth for the third quarter that will be relatively consistent with the year over year growth reported during the first half of 2003. However, as our major customers continue to shorten their lead times and reduce inventory in the various distribution channels, our visibility into the fourth quarter and full year is too limited to comment on at this time.”

TRUE TEMPER SPORTS, INC. (A wholly-owned subsidiary of True Temper Corporation)

                      CONDENSED STATEMENTS OF OPERATIONS
                                 (Unaudited)
                            (Dollars in thousands)

                               For the Three              For the Six
                               Months Ended               Months Ended
                            June 29,     June 30,     June 29,      June 30,
                             2003          2002         2003          2002

    Net sales            $  32,491     $  29,892    $  64,092     $  59,254
    Cost of sales           19,199        16,907       38,952        35,671
     GROSS PROFIT           13,292        12,985       25,140        23,583

    Selling, general and
     administrative
     expenses                3,605         3,799        7,679         7,375
    Business development
     and start-up costs        159            --          284            --
    Loss on early
     extinguishment of
     long-term debt             --            --           --            20
     OPERATING INCOME        9,528         9,186       17,177        16,188

    Interest expense, net
     of interest income      3,323         3,067        6,651         6,169
    Other expenses, net         41             4           46             8
     INCOME BEFORE INCOME
      TAXES                  6,164         6,115       10,480        10,011

    Income taxes             2,413         2,374        4,145         3,894
    NET INCOME           $   3,751     $   3,741    $   6,335     $   6,117