Women's Golf Unlimited, formerly Square Two Golf, today reported record sales for the second quarter and six months ended June 29, 2001.

Net sales for the six months were $9,923,934, up 46 per cent from $6,792,046 in the first six months of 2000. Net income during the period declined to $210,176, or $0.06 per share on a diluted basis, from $402,742, or $0.18 per share, in the same period last year.

For the second quarter, sales increased 38 per cent, to $5,402,339, from $3,927,376 in the same period in 2000. Net income for the quarter declined to $36,248, or $0.01 per share, compared to $288,705, or $0.13 per share, in 2000.

"We are pleased with our 46 per cent revenue increase, especially in light of very difficult golf industry conditions and the uncertain economic outlook over the first six months of 2001," said Douglas A. Buffington, president of Women's Golf Unlimited.

"Our Square Two brand of women's equipment continues to grow, with the success of the Light and Easy and Kathy Whitworth Monogram Series club sets. Our acquisitions last year of NancyLopezGolf and Lady Fairway added significantly to sales growth this year and also enabled us to increase our gross margins.

"Our net income was affected significantly by our commitment to increase our advertising budget to build the NancyLopezGolf brand during the period. Net income was also affected in the first six months by $183,000 of goodwill amortization associated with the two recent acquisitions.

"Our solid financial position gives us the capacity to invest in building our brands, and we're confident that these activities will put Women's Golf Unlimited in a stronger position when the industry rebounds. We are determined to invest in our future growth, and we're comfortable with the fact that the brand development cycle is longer than the financial reporting cycle."