LaCrosse Footwear, Inc. (NASDAQ:BOOT), a leading provider of branded work and outdoor footwear, yesterday reported results for the second quarter ended June 28, 2008.

For the second quarter of 2008, LaCrosse reported consolidated net sales of $27.8 million, up 12% from $24.9 million in the second quarter of 2007. For the first half of 2008, consolidated net sales were $52.5 million, up 8% from $48.6 million in the same period of 2007.

Net income was $1.4 million or $0.22 per diluted share in the second quarter of 2008, up 47% from $1.0 million or $0.15 per diluted share in the second quarter of 2007. For the first half of 2008, net income was $2.2 million or $0.35 per diluted share, up 40% from $1.6 million or $0.25 per diluted share for the same period in 2007.

Sales to the work market were $17.4 million for the second quarter of 2008, up 32% from $13.2 million for the same period of 2007. For the first half of 2008, sales to the work market were $35.2 million, up 23% from $28.6 million for the same period of 2007. The growth in work market sales reflects shipments related to previously announced military orders and continued penetration into a variety of targeted, niche work boot markets. During the second quarter of 2008, the Company shipped approximately $1.8 million of orders to the United States Marine Corps and the U.S. Army.

Sales to the outdoor market were $10.5 million for the second quarter of 2008, compared to $11.8 million for the same period of 2007. For the first half of 2008, sales to the outdoor market were $17.3 million compared to $20.0 million for the same period of 2007. The Company believes the decline in overall outdoor sales was primarily due to the cautious retail environment that continues to impact consumer spending in North America. However, LaCrosse believes it is well positioned to capture at-once demand when retail spending improves.

The Company strengthened its year-over-year gross margins. For the second quarter of 2008, its gross margin was 40.4% of net sales, up 120 basis points from 39.2% in the same period of 2007, reflecting price increases in recent periods and reductions in sales returns, discounts and allowances.

LaCrosse’s total operating expenses were $8.9 million, or 32% of net sales, in the second quarter of 2008, compared to $8.3 million, or 33% of net sales, in the second quarter of 2007. The Company continued to grow sales faster than operating expenses, while increasing its investments in its sales and product development activities. In addition, LaCrosse’s inventory decreased 3% at the end of the second quarter of 2008 compared to the end of the same period in 2007, reflecting improved inventory management.

During the quarter, LaCrosse paid a quarterly cash dividend of twelve and one-half cents ($0.125) per share of common stock, totaling $0.8 million. LaCrosse ended the second quarter of 2008 with cash and cash equivalents of $13.3 million, up from $10.3 million at the end of the previous quarter.

“We are pleased with our results for the second quarter, despite continuing challenges in the retail environment,” said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. “The growth in our work business continued to be driven by shipments to various branches of the United States military and niche work markets. During the second quarter, we announced an additional $3 million delivery order related to our Mountain Cold Weather Boot contract with the United States Marine Corps, which we expect to ship in the second half 2008. Our success in this channel reflects the military’s increased demand for our expert-grade boots, as well as our sustained efforts to work closely with our customers and gain a rich understanding of their specific needs under tough combat conditions.”

“In line with our long-term strategy to diversify and strengthen our sales channels, today we announced the establishment of a new European sales office in order to expand our international business where we see significant opportunities for future growth. In addition, we intend to build a new world-class distribution facility in the Midwest to improve operating efficiencies, increase speed of delivery and better serve our customers. At the same time, we have continued to improve our gross margin and profitability, better manage our inventories, leverage our operating expenses, generate steady cash flow from operations and pay dividends, while continuing to introduce exciting new products and invest in growing our business.”

LaCrosse will host a conference call today, July 21, 2008, to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.lacrossefootwearinc.com under “Investor Events” or 800-218-0530 or +1-303-262-2139. A 48-hour replay will be available by calling 800-405-2236 or +1-303-590-3000 (Reservation No. 11116503). A replay will also be available on the Company’s Web site.

About LaCrosse Footwear, Inc.

LaCrosse Footwear, Inc. is a leading developer and marketer of branded, premium and innovative footwear for expert work and outdoor users. The Company’s trusted Danner^® and LaCrosse^® brands are sold to a network of specialty retailers and distributors in the United States, Canada, Europe and Asia. Work customers include people in law enforcement, agriculture, firefighting, construction, military services and other occupations that need high-performance and protective footwear as a critical tool for the job. Outdoor customers include people active in hunting, outdoor cross training, hiking and other outdoor recreational activities. For more information about LaCrosse Footwear products, please visit our Internet websites at www.lacrossefootwear.com and www.danner.com. For additional investor information, see our corporate website at www.lacrossefootwearinc.com.