California Pro Announces Results
(August 20, 1996)

Net income for the quarter ended June 30, 1996 was $483,800 or $.12 per share versus $54,500 or $.02 per share for the quarter ended June 30, 1995. Revenues were $5,970,000 compared to $4,960,000 representing a 20% increase. Year to date through June 30, 1996, net income was $66,500 or $.02 per share compared to last years loss of $256,100 or $.07 per share. Revenues for the six months were $7,800,000 versus $7,900,000 a year ago.

Michael S. Casazza, President and Chief Operating Officer, stated that the Company's results were unfavorably affected by $320,000 of costs related to the acquisition of its hockey business, and the extremely soft retail market. Casazza further commented on market conditions, "Heavy retail and wholesale inventories prevail with most major competitors selling close-out in-line skates at substantially reduced margins. Fortunately, we forecasted the market correctly and managed our inventory to minimize the financial impact."

Casazza stated that the balance of the year should be more favorable mainly due to the performance of USA Skate Corp., now a majority owned subsidiary of the Company, coupled with the replacement of sales management in in-line skates, new in-line skate product launches, and international sales of in-line skates and related accessories.

California Pro Sports imports, manufactures, and distributes products in three participant sports categories. In-line skates and related accessory products are marketed under the brand names California Pro(R) and Rolling Thunder(TM), snowboards and snowboard accessory products are marketed under the Kemper(R) brand, and ice and street/roller hockey skates, sticks, related gear, and accessories, as well as figure skates are marketed under the Victoriaville(TM), Vic(R), and McMartin brands.