Square Two Golf, Inc. (Nasdaq:GOLF), a leading manufacturer of women's golf equipment, announced today that it has signed a letter of intent to acquire Lady Fairway, a leading supplier of women's golf shoes, gloves and socks. Square Two expects to complete the purchase of privately held Lady Fairway in late July through a combination of cash and stock. Terms of the purchase were not disclosed.

"This acquisition demonstrates Square Two's focus on the women's golf market and will strengthen our position as a leading supplier to this segment," said Douglas A. Buffington, president and chief operating officer of Square Two. "We are excited about approaching the marketplace with a combined sales force and a broader line of products.

"Our plans are to not merely preserve the Lady Fairway brand but to expand it further through Square Two's distribution channels, much as Lady Fairway's existing channels will enable us to further build the Square Two brand. In addition, we will realize significant cost savings by eventually folding Lady Fairway's marketing and operations functions into those of Square Two."

Jimmy Jones, Lady Fairway's founder and president, said, "Lady Fairway has grown rapidly in recent years because of our products designed exclusively for women and our intimate understanding of the women's golf equipment market. Lady Fairway's momentum will continue to increase as part of Square Two, which understands and shares our commitment to the women's game."

Established in 1993, Lady Fairway sources its manufacturing from overseas and markets its shoes, socks, gloves and related accessories primarily in golf course pro shops, as well as off-course shops throughout the United States and Canada. The company is highly regarded in the industry for its new ComfortFit(TM) shoe last, a shoe form that is designed to mirror the unique anatomy if a woman's foot from heel to toe.

Upon completion of the purchase, the Lady Fairway operations will become the shoe, glove and sock business of Square Two and will be directed by Jones. Lady Fairway's offices, located now in Tampa, Fla., will eventually be relocated to Square Two's offices in Fairfield, N.J.

"We are very pleased to be in a position to capitalize on acquisition opportunities like this," Square Two's Buffington said. "Although many golf companies have posted losses in the past two years because of the industry's difficult conditions, we have remained profitable, strengthened our balance sheet and invested in the Square Two brand by adding new quality products and a new line of Square Two women's apparel. We will continue to look for growth opportunities that leverage our strong association and commitment to the women's golf game and our solid financial position."

Square Two Golf, established in 1974, markets women's and men's golf clubs and related equipment throughout the United States. Square Two is one of the leading brands among women golfers and, through an agreement with the Ladies Professional Golf Association, holds the exclusive right to use the LPGA logo on its golf clubs and promotional materials. The company operates a headquarters and manufacturing plant in Fairfield, N.J., and maintains a website at www.squaretwo.com.