Under Armour, Inc. third quarter net revenues increased 47.5% to $127.7 million compared to net revenues of $86.6 million in the third quarter of 2005. Apparel revenues for Men's, Women's, and Youth increased 41.8% to $116.7 million. Third quarter net income increased 90.4% to $16.0 million compared to $8.4 million in the same period of 2005. Diluted earnings per share were 32 cents, on weighted average common shares outstanding of 49.6 million compared to 20 cents per share on weighted average common shares outstanding of 39.3 million in the third quarter of the prior year. The Company received a $2.3 million benefit to net income, or $0.05 per diluted share, as a result of the impact of new state tax credits.

“Our growth this quarter reflects the Brand's momentum both at retail and within the entire athletic landscape,” stated Kevin A. Plank, Chairman and CEO of Under Armour, Inc. “We believe the shift away from standard cotton to performance products at all levels of sport continues to fuel growth in our core categories while also creating a demand for new product lines and tip-of-spear product extensions. We remain committed to serving the needs of the athlete with an innovative and authentic focus.”

Apparel revenues grew 41.8% for the quarter due to continued strength in the Men's, Women's, and Youth businesses. These businesses benefited from strength in core product categories and an increased presence of the Brand at retail. The training and compression categories were particularly strong and were the primary drivers of revenue growth.

Gross margin was 50.6% compared to 49.6% in last year's third quarter, primarily driven by improved sourcing initiatives. Selling, general and administrative expenses were 33.4% of net revenues in the third quarter of 2006 compared to 32.9% in the same period of the prior year. This increase reflects planned investments in growth initiatives, such as international and footwear, as well as additional costs associated with being a public company.

Increasing Outlook for 2006

Based on the strength of the Brand year-to-date, Under Armour is increasing its outlook for 2006.

The Company now expects annual net revenues in the range of $410 million to $420 million, a 46% to 49% increase over 2005, and annual net income in the range of $38.5 million to $39.5 million. The Company anticipates an additional $1.0 million benefit from new state tax credits expected to be recognized in the fourth quarter, realizing an effective tax rate of 33.6% for the full year. The Company continues to expect fully diluted weighted average shares outstanding of approximately 50 million for 2006.

Preliminary Outlook for 2007

The Company has previously stated its long-term growth targets of 20% – 25% for the top and bottom line. However, based on the continued strength of the Brand and its ability to extend product scope and distribution, the Company believes 2007 net revenues and income from operations will exceed the long-term 20% – 25% growth targets.

Mr. Plank concluded, “Under Armour is a growth company. Our focus remains on achieving all of our strategic and financial goals while continuing to assemble and invest in building the Brand globally. We remain diligent about our reinvestment in four areas of concentration: Aggressive research and development of performance products, impactful marketing of our succinct Brand messages, building our international and footwear businesses, and strengthening our operations and systems infrastructure.”

Under Armour, Inc.
Quarter and Nine Months Ended September 30, 2006 and 2005
(in thousands, except per share amounts)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


                                Quarter             Quarter
                                  Ended   % of Net   Ended   % of Net
                                 9/30/06   Revenues  9/30/05  Revenues
                                --------------------------------------

Net revenues                    $127,745     100.0% $86,606     100.0%
Cost of goods sold                63,070      49.4%  43,641      50.4%
                                --------------------------------------
        Gross profit              64,675      50.6%  42,965      49.6%

Operating expenses
    Selling, general and
     administrative expenses      42,692      33.4%  28,482      32.9%
                                --------------------------------------

        Income from operations    21,983      17.2%  14,483      16.7%

Other income (expense)
    Interest income (expense),
     net                             177       0.1%    (836)    (0.9%)
                                --------------------------------------

        Income before income
         taxes                    22,160      17.3%  13,647      15.8%
Provision for income taxes         6,190       4.8%   5,261       6.1%
                                --------------------------------------

        Net income                15,970      12.5%   8,386       9.7%
                                --------------------------------------

Accretion of and cumulative
 preferred dividends on Series
 A Preferred Stock                    --       0.0%     599       0.7%
                                --------------------------------------

        Net income available to
         common shareholders    $ 15,970      12.5% $ 7,787       9.0%
                                ======================================

Net income available per common
 share
Basic                           $   0.34            $  0.21
Diluted                         $   0.32            $  0.20

Weighted average common shares
 outstanding
Basic                             47,164             36,571
Diluted                           49,599             39,324