ESCALADE ANNOUNCES SECOND QUARTER RESULTS

 Wabash, IN (July 30, 2004) Escalade, Incorporated (NASDAQ: ESCA) announced today that net sales rose 10% to $54,655,000 in the second quarter, bringing year to date sales to $89,905,000, a 14% gain, as compared to year ago comparable periods.  Net income declined 13% for the quarter to $1,953,000, however, year to date net income is up 13% to $2,551,000 or twenty cents per share as compared to seventeen cents for last year’s first half. 

Escalade Sports’ net sales of sporting good products rose 16% to $30,619,000 for the quarter reflecting the inclusion of the Bear Archery acquisition for the full quarter and the return to more normal shipping patterns due to improved inventory management by our customers.  The increased sales and continued improvement in factory operating expenses drove a 7.5% increase in net income for the quarter.  For the first half, net sales are up 23% to $46,309,000 and net income is up 82% compared to the same period last year.  The first half has been the beneficiary of one time sales gains that will not occur in the second half; however, we still expect to show an increase for the full year.  Subsequent to the quarter, we signed a definitive agreement to acquire a non sporting goods product line that meets our strategic objective of fully utilizing the capacity of our blow molding and weight filling facility in Olney, IL.  This should add between one and two million dollars to net sales on an annual basis and will be accretive to earnings beginning in 2005.

Net sales of office products at Martin Yale increased 3% to $24,035,000 while net income declined 5% for the quarter.  For the first half net sales are 5% ahead at $43,596,000 and net income is 16% behind the first half of last year.  Net income in North America continues to climb (up 14% year to date) due to the synergies achieved from the Schleicher acquisition and in spite of substantial delays in shipments of paper shredders to certain customers due to the finalization of new prices to offset the impact of the strong euro.  Gains in both sales and net income in the UK and France have been more than offset by the continued operating inefficiencies in Germany.  We have now fully reorganized the management team in Germany, eliminated most of the inefficiencies, and absorbed a significant amount of the costs of the personnel reductions in the first half, laying the groundwork for a profitable second half.  We expect that all office product locations around the world will be profitable in the last half of this year.

We are continuing to evaluate acquisitions in the sporting goods industry now. We should be in a position to begin looking for opportunities in the office products industry in the last half of 2005.

Escalade is a quality manufacturer and marketer of sporting goods and office/graphic arts products sold worldwide. To obtain more information on the Company and its products, visit our website at: www.EscaladeInc.com or contact Terry Frandsen Vice President and CFO at 260/569-7208 or C.W. (Bill) Reed, President and CEO at 260/569-7233.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

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CONSOLIDATED CONDENSED BALANCE SHEET

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FORWARD LOOKING STATEMENTS 

This report contains forward-looking statements relating to present or future trends or factors that are subject to risks and uncertainties.  These risks, include, but are not limited to, the impact of competitive products and pricing, product demand and market acceptance, Escalade’s ability to successfully integrate the operations of acquired assets and businesses, new product development, the continuation and development of key customer and supplier relationships, Escalade’s ability to control costs, general economic conditions, fluctuations in operating results, changes in the securities markets and other risks detailed from time to time in Escalade’s filings with the Securities and Exchange Commission.  Escalade’s future financial performance could differ materially from the expectations of management contained herein.  Escalade undertakes no obligation to update these forward-looking statements after the date of this report.

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