Falconhead Capital Sells The Golf Warehouse to the Sportsman's Guide

NEW YORK, June 29, 2004 – Falconhead Capital, a private investment firm specializing in leisure-, lifestyle-, media- and sports-related businesses, today announced that it has sold The Golf Warehouse (TGW), the leading online and catalog golf retailer, to The Sportsman's Guide, Inc. (Nasdaq: SGDE). Falconhead’s investment in TGW generated a return of four times invested capital over a four-year period.

Falconhead acquired The Golf Warehouse through a growth recapitalization in late 1999. In less than five years, during which several of its competitors ceased operation, TGW has increased revenues approximately eight-fold and has generated solid profits. In addition to its online presence, The Golf Warehouse successfully launched a catalog business in 2002. Since it was acquired by Falconhead TGW also established strategic relationships with The Golf Channel, PGA Tour and, most recently, Amazon.

David Moross, Chairman and Chief Executive Officer of Falconhead, said: “We are very pleased with our investment in The Golf Warehouse, which generated an attractive return for our investors. During the four-plus years that we controlled TGW, the company’s revenues increased dramatically and it emerged from a crowded competitive field as a clear leader among golf e-tailers. We expect that TGW will continue to be successful under The Sportsman’s Guide.”

Thomas Weisel Partners served as financial advisor to Falconhead Capital and The Golf Warehouse with respect to this transaction.

Founded in 1998, The Golf Warehouse (www.thegolfwarehouse.com or www.tgw.com) is a leading online and catalog retailer of golf equipment, apparel and accessories. TGW offers its customers products from top brand names within the golf industry, including Titleist®, FootJoy®, Cobra®, Callaway®, Taylor Made® and Nike®. TGW provides consumers the broadest and deepest selection of golf product, comprising more than 20,000 SKUs across all of its product categories including clubs, bags, balls, apparel, shoes, training aids, gifts, memorabilia and accessories. TGW has established itself as a leader in its industry by providing its customer base of more than 1.5 million golfers with an extensive product offering, competitive prices, and convenience and easy ordering through its innovative website and knowledgeable customer service.

Falconhead Capital LLC (www.falconheadcapital.com), whose principal fund is Sports Capital Partners, L.P., is a private investment firm established in 1998 to provide investors with significant long-term capital appreciation by investing globally in leisure-, lifestyle-, media- and sports-related businesses. The firm's investment partners include the California Public Employees' Retirement System (CalPERS), the nation’s largest public pension fund, which has committed to invest a minimum of $122 million in Falconhead funds. Falconhead’s investment strategy is also backed by its strategic partner, IMG, the world's largest sports marketing and management firm. Falconhead is headquartered at 527 Madison Avenue, 10th Floor, New York, NY 10022; telephone: 212-634-3304.

Contacts:
Falconhead Capital
Roy Winnick or Mark Semer
Kekst and Company
212-521-4842 or 4802 

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