Lowrance Fiscal 2004 Net Income Jumps 89% to a Record $2.20 Per Share on a 27% Increase in Sales; Fourth Quarter Net Income Increases 65% to $0.51 Per Share

Business Wire, August 26, 2004

TULSA, Okla. -- Lowrance Electronics, Inc. (NASDAQ:LEIX) today announced that net income for the year ended July 31, 2004, increased 89% to a record $8,756,000, or $2.20 per diluted share, compared to net income of $4,645,000, or $1.19 per diluted share, in fiscal 2003. Net sales increased 27% to $111,861,000, compared to $88,297,000 last year.

For the fourth quarter ended July 31, 2004, net income increased 65% to $2,047,000, or $0.51 per diluted share, compared to net income of $1,239,000, or $0.31 per diluted share, for the same period in fiscal 2003. Net sales for the fourth quarter increased 17% to $27,061,000, compared to $23,214,000 for the same quarter of fiscal 2003.

"This year Lowrance introduced over 30 SONAR and GPS products, more than double the Company's new product introduction rate just two years ago. Our rapid product development pace, supported by a 25% increase in research and development expenditures, has led to increased sales and significantly improved profitability," said Darrell Lowrance, Lowrance's president and CEO.

"The strong product development schedule continues again this year, with the addition of thirteen design engineers and the planned introduction of a record number of new, state-of-the-art SONAR and GPS products in fiscal 2005. New product introductions planned for delivery later this year include multi-purpose boat networking capabilities for SONAR and GPS products and a color turn-by-turn automotive navigation GPS product. Of the nine new handheld and portable GPS products scheduled for fiscal 2005, over half will include the audible turn-by-turn driving instruction capabilities," he said.

Lowrance's continuing fast pace of new product introductions helped increase fourth quarter sales 17%, raising gross profit to 43% of sales, compared to 40% of sales in the same period last year. The strong sales gains boosted operating income 61%, to $2,576,000, or nearly 10% of sales, compared to $1,602,000, or 7% of sales, in the comparable quarter of fiscal 2003.

About Lowrance Electronics

Lowrance Electronics, Inc. (www.lowrance.com) designs, manufactures and markets SONAR and GPS products, digital mapping systems and other accessories under the brand names "Lowrance"(R) and "Eagle"(R) Electronics and "Lowrance Avionics"(R). These products are used in the following primary product markets: marine, general consumer (which includes outdoor recreational use and vehicular navigational systems) and aviation.

This press release may include certain statements concerning expectations for the future that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that are difficult to predict and many of which are beyond management's control, including factors discussed in the Company's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. While the Company makes these statements and projections in good faith, neither the Company nor its management can guarantee that anticipated future results will be achieved. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

LOWRANCE ELECTRONICS, INC.
      CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
               (in thousands, except per share amounts)

                                    Three Months      Twelve Months
                                         Ended             Ended
                                       July 31,          July 31,
                                    2004     2003     2004     2003

NET SALES                          $27,061  23,214  $111,861  $88,297
COST OF SALES                       15,528  13,923    64,557   51,036

 Gross profit                       11,533   9,291    47,304   37,261

OPERATING EXPENSES:
 Selling and administrative          7,465   6,523    28,742   25,189
 Research and development            1,492   1,166     5,252    4,191

 Total operating expenses            8,957   7,689    33,994   29,380

 Operating income                    2,576   1,602    13,310    7,881

OTHER EXPENSES:
 Interest                              131     232       689      989
 Other                                 (18)      7       192       30

 Total other expenses                  113     239       881    1,019

INCOME BEFORE INCOME TAXES           2,463   1,363    12,429    6,862

PROVISION FOR INCOME TAXES             416     124     3,673    2,217

NET INCOME                           2,047   1,239    $8,756   $4,645

NET INCOME PER COMMON SHARE
 Basic                               $0.54   $0.33     $2.33    $1.23
 Diluted                             $0.51   $0.31     $2.20    $1.19

WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING
 Basic                               3,761   3,761     3,761    3,761
 Diluted                             3,988   3,932     3,979    3,893

DIVIDENDS                             $941      --    $1,881       --

COMPREHENSIVE INCOME
 Net Income                         $2,047  $1,239    $8,756   $4,645
 Foreign currency translation
  adjustment, net of tax               (14)     49       141      259

 Comprehensive income               $2,033  $1,288    $8,897   $4,904


                      LOWRANCE ELECTRONICS, INC.
                     CONSOLIDATED BALANCE SHEETS

                                                       July 31,
                     ASSETS                         2004       2003
                                                    (in thousands)
CURRENT ASSETS:
 Cash and cash equivalents                         $ 1,412    $ 1,206
 Trade accounts receivable, net                     10,276      8,431
 Inventories                                        23,821     15,941
 Current deferred income taxes                       1,107        894
 Prepaid expenses                                    2,041      1,290
  Total current assets                              38,657     27,762

PROPERTY, PLANT AND EQUIPMENT, net                  10,005      7,593
OTHER ASSETS                                            81         62

  TOTAL ASSETS                                    $ 48,743   $ 35,417


      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
 Current maturities of long-term debt              $ 1,874    $ 2,061
 Accounts payable                                    6,072      2,951
 Accrued liabilities:
   Compensation and benefits                         3,175      2,704
   Product costs                                     1,968      1,004
   Accrued taxes                                       671         --
   Other                                             1,119        893
  Total current liabilities                         14,879      9,613

LONG-TERM DEBT, less current maturities              6,040      5,825
DEFERRED INCOME TAXES                                1,169        371

STOCKHOLDERS' EQUITY:
 Common stock, $.10 par value, 10,000,000
  shares authorized, 3,761,196 shares issued
  and outstanding at July 31, 2004 and 2003            377        377
 Paid-in capital                                     7,449      7,418
 Retained earnings                                  18,721     11,846
 Accumulated other comprehensive income (loss)         108        (33)
  Total stockholders' equity                        26,655     19,608

  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $ 48,743   $ 35,417