Brass Eagle Announces Record First Quarter Results; Fully-diluted EPS Increase 71%.

ROGERS, Ark.--(BUSINESS WIRE)--April 26, 1999--

Brass Eagle Inc. (Nasdaq: XTRM) the worldwide leader in the manufacturing, marketing and distribution of paintball products today reported earnings for the first quarter ended March 31, 1999.

Net sales increased 21.4% to $19,004,000 for the first quarter ended March 31, 1999, versus $15,658,000 for the same period last year. Net income for the three months ended March 31, 1999 rose 73.5% to $2,230,000, compared to $1,285,000 in the first quarter of 1998 and fully diluted earnings per share increased 70.6% to $0.29, versus fully-diluted earnings per share of $0.17 during the same period.

Lynn Scott, the Company's President and CEO, commented, "We are very pleased with our first quarter earnings, which once again exceeded both internal and external expectations. The better than expected results were due primarily to reorders, caused by higher sell-through at our sporting goods retailers and mass merchandisers such as Kmart and Wal-Mart. Additionally, we are beginning to realize sales and margin benefits from our acquisition of the product lines of C. M. Support Inc. purchased in January 1999, and leverage benefits from increased volume at our new paintball plant."

Mr. Scott concluded, "These results support our belief that the sport of paintball continues to grow rapidly and receive heightened recognition as an exciting recreational activity. We are encouraged with regard to the future as we continue to expand our market share and look for underdeveloped brands and products to further strengthen our product offering. In our opinion, significant growth opportunities lie ahead for Brass Eagle as paintball appeals to a wide demographic, in particular the youth market, which represents 66 million individuals and $500 billion in spending power."

Brass Eagle is unique in providing a full line of paintball markers and accessory products from beginner through competition level. The Company is the dominant supplier of products for this rapidly growing sport.

For more information, please call Chad Jacobs, Integrated Corporate Relations, Inc., at 203-222-9013 or send faxes to 203-222-9372.

                  Condensed Statements of Operation
                       Condensed Balance Sheets


                            BRASS EAGLE INC
                  CONDENSED STATEMENTS OF OPERATIONS
            (In thousands except share and per share data)


                                                  THREE MONTHS ENDED

                                                        MARCH 31,
                                                1999              1998

                                                     (unaudited)

Net sales                                   $   19,004      $   15,658
Cost of sales                                   11,608          10,253

Gross profit                                     7,396           5,405

Operating expenses                               3,805           3,464

Operating income                                 3,591           1,941

Interest income / (expense)                         65             141

Income before income taxes                       3,656           2,082

Provision for income taxes                       1,426             797


Net income                                  $    2,230      $    1,285

Net income per share:
         Basic                              $      .31      $      .18
         Diluted                            $      .29      $      .17

Weighted Average
Shares Outstanding:
         Basic                               7,245,036       7,232,781
         Diluted                             7,691,500       7,680,319


                            BRASS EAGLE INC.
                       CONDENSED BALANCE SHEETS
                   (In thousands except share data)


                                               MARCH 31,  DECEMBER 31,
                                                  1999     1998
                                               (unaudited)

         ASSETS
Current assets
  Cash & cash equivalents                          $ 5,583     $ 6,836
  Accounts receivable - less
 allowance for doubtful
    accounts of $524 in
    1999 and $479 in 1998                           19,651      18,271
  Inventories                                        7,912       5,607
  Prepaid expenses and
    other current assets                             2,618       2,829

         Total current assets                       35,764      33,543
Property and equipment, net                          5,772       5,337
Intangible assets, net                               7,017       2,550

                                                   $48,553     $41,430



LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Accounts payable                                 $ 5,911     $ 2,772
  Accrued expenses                                   5,831       4,171

         Total current liabilities                  11,742       6,943
Deferred income taxes                                  263         213
Stockholders' equity
    common stock, $.01 par value,
    10,000,000 shares
    authorized, issued and
    outstanding 7,245,511 in 1999,
    and 7,241,951 in 1998                               72          72
   Additional paid-in capital                       25,711      25,667
   Retained earnings                                10,765       8,535

                                                    36,548      34,274

                                                   $48,553     $41,430


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