Escalade Announces Increase in Second Quarter Earnings

Escalade, Incorporated (NASDAQ: ESCA) announced net income for the second quarter and first half of 2007 increased 105% and 21%, respectively. Earnings per share for the second quarter and first half of 2007 were $0.19 and $0.27, respectively, compared to $0.09 and $0.22 for the same periods last year. Excluding the effects of changes in foreign currency rates, revenues for the second quarter and first half of fiscal 2007 were relatively unchanged from the same periods last year.

Sales in the Sporting Goods business were up 3% for the second quarter and first half of 2007, compared to the same periods last year. Sales to the specialty market, which includes dealers and specialty sporting goods retailers, were up 8% and 27% for the second quarter and first half of 2007, respectively, compared to last year. This increase reflects the Company's continued strategic plan to expand its customer base and lessen the impact of its large mass market retail customers. Although the Company continues to enjoy strong relationships with its mass market retail customers and is actively striving to increase that business, management believes a continued general decline in consumer demand for game tables will result in lower sales to the mass market. Compared to last year, Sales to the mass market declined 2% and 12% in the second quarter and first half of 2007, respectively. Operating income from the Sporting Goods business increased 45% and 51% in the second quarter and first half of 2007, respectively, compared to the same periods last year. The improved profitability reflects the higher gross margins achieved in the specialty business compared to that achieved in the mass market business. Management expects the trends of the first half of 2007 to be indicative of the second half of 2007; sales to the specialty market will offset declining sales to the mass market resulting in total Sporting Goods sales for 2007 roughly equal to that achieved in 2006 and marginally better profitability.

Excluding the impact of foreign currency fluctuations, revenues from the Office Products segment were relatively unchanged from the prior year. Weak consumer demand in North America was offset by higher sales in European markets. Operating profits from the Office Products business continue to be strong resulting in a 33% and 10% increase in the second quarter and first half of 2007, respectively, compared to 2006. Management still anticipates that 2007 revenues and profits in the Office Products business will be roughly equal to the levels achieved in 2006.

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 812/467-1334.

              ESCALADE, INCORPORATED AND SUBSIDIARIES

            CONSOLIDATED CONDENSED STATEMENTS OF INCOME
         (Unaudited, In Thousands Except Per Share Amounts)


                Three Months Ended   Six Months Ended  Twelve Months Ended
                ------------------  ------------------ -------------------
                14 July   15 July   14 July   15 July   14 July   15 July
                  2007      2006      2007      2006      2007      2006
                --------  --------  --------  --------  --------  --------

NET SALES       $ 50,530  $ 48,949  $ 83,997  $ 81,749  $193,713  $187,731

OPERATING
 EXPENSES
  Cost of goods
   sold           33,456    33,613    55,911    55,661   138,071   130,174
  Selling and
   administrat-
   ive            11,830    12,379    20,538    20,784    39,673    38,706
  Restructuring       --        --        --        --        --      (631)
                --------  --------  --------  --------  --------  --------

OPERATING
 INCOME            5,244     2,957     7,548     5,304    15,969    19,482

OTHER INCOME
 (EXPENSE)
  Interest
   expense          (952)     (810)   (1,469)   (1,064)   (3,042)   (1,766)
  Other income
   (expense)        (646)     (190)   (1,067)     (255)     (440)      253
                --------  --------  --------  --------  --------  --------

INCOME BEFORE
 INCOME TAXES      3,646     1,957     5,012     3,985    12,487    17,969

PROVISION FOR
 INCOME TAXES     (1,211)     (925)   (1,480)   (1,589)   (2,856)   (6,326)
                --------  --------  --------  --------  --------  --------

NET INCOME      $  2,435  $  1,032  $  3,532  $  2,396  $  9,631  $ 11,643
                ========  ========  ========  ========  ========  ========

PER SHARE DATA
  Basic
   earnings per
   share        $   0.19  $   0.08  $   0.27  $   0.18  $   0.74  $   0.89
                ========  ========  ========  ========  ========  ========
  Diluted
   earnings per
   share        $   0.19  $   0.08  $   0.27  $   0.18  $   0.74  $   0.89
                ========  ========  ========  ========  ========  ========
  Average
   shares
   outstanding    12,974    13,039    13,000    13,013    13,014    13,019





               CONSOLIDATED CONDENSED BALANCE SHEET
                  (Unaudited, In Thousands)


                              14 July 2007   15 July 2006  30 December 2006
                             -------------- -------------- ----------------
ASSETS
  Current assets             $       80,603 $       83,256 $         74,470
  Property, Plant &
   Equipment - net                   20,625         20,808           20,657
  Other assets                       32,702         30,331           30,561
  Goodwill                           25,275         24,628           25,027
                             -------------- -------------- ----------------
    Total                    $      159,205 $      159,023 $        150,715
                             ============== ============== ================

LIABILITIES AND
 STOCKHOLDERS’ EQUITY
  Current liabilities        $       38,911 $       47,298 $         41,345
  Other liabilities                  33,304         33,533           23,655
  Stockholders’ equity               86,990         78,192           85,715
                             -------------- -------------- ----------------
    Total                    $      159,205 $      159,023 $        150,715
                             ============== ============== ================

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.