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Press Release

Sturm, Ruger & Company, Inc. (NYSE: RGR) announced today that the Federal Trade Commission ("FTC") issued a letter on August 22, 2003 closing its investigation of a number of members of the firearms industry without action. This investigation commenced in August, 2000. Its stated purpose was to investigate whether any members of the firearms industry had violated Section 5 of the FTC Act by illegally conspiring to boycott Smith & Wesson after that company concluded an agreement with the Clinton Administration in March, 2000.

In that agreement, since abrogated by the present administration, Smith & Wesson agreed to undertake controversial gun-control type measures demanded by prior HUD officials and certain city mayors and state attorneys general as a condition for their dismissal of Smith & Wesson from then-pending and threatened litigation. Smith & Wesson officials later called the agreement impractical and unenforceable, and it was withdrawn by mutual consent of the parties.

The Smith & Wesson agreement itself created considerable concern among firearms owners, some of whom unilaterally decided not to purchase Smith & Wesson products unless Smith & Wesson repudiated this agreement. Certain public officials apparently misapprehended this grass-roots gun owner reaction as an industry-sponsored boycott of Smith & Wesson by its competitors for anti-competitive purposes, and initiated this investigation by the FTC and certain state attorneys general.

"Sturm, Ruger & Company, Inc. has always conducted its business affairs in a lawful manner and has completely cooperated with the FTC in its investigation concerning the Smith & Wesson agreement and its aftermath" said Sturm, Ruger & Co. President Stephen L. Sanetti. "We have the highest professional regard for our competitor Smith & Wesson. We are glad that, after a lengthy and comprehensive investigation, this matter is finally closed."

-------------------------------------------------------------------------------- Sturm, Ruger is the nationís leading manufacturer of high-quality firearms for recreation and law enforcement, and a major producer of precision steel and titanium investment castings components for consumer industries. Sturm, Ruger is headquartered in Southport, CT, with plants and foundries located in Newport, NH and Prescott, AZ. Sturm, Ruger & Co., Inc.


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