ROCKY BRANDS, INC.
Company Contact:	Jim McDonald
	Chief Financial Officer
	(740) 753-1951
Investor Relations:	Integrated Corporate Relations, Inc.
	Brendon Frey/Chad Jacobs
	(203) 682-8200

ROCKY BRANDS, INC. ANNOUNCES THIRD QUARTER FISCAL 2007 RESULTS

NELSONVILLE, Ohio, October 23, 2007 — Rocky Brands, Inc. (Nasdaq: RCKY) today announced financial results for its third quarter ended September 30, 2007.

For the third quarter of 2007, net sales increased 5.4% to $82.3 million versus net sales of $78.1 million in the third quarter of 2006. The Company reported net income of $1.1 million, or $0.21 per diluted share versus net income of $4.2 million or $0.76 per diluted share a year ago.

Mike Brooks, Chairman and Chief Executive Officer, commented, “While our third quarter sales were in-line with our projections our earnings were lower than we anticipated due to a combination of factors. During the quarter we experienced a 550 basis point decline in gross margin as a result of significant pricing pressure and an increase in product costs. In addition, we made the strategic decision to increase our retail operating expenses in order to capitalize on the near-term prospects created by the bankruptcy of a key competitor. We are committed to driving further top-line gains in both our wholesale and retail divisions while at the same time evaluating all our opportunities in an effort to return to more normalized margins beginning in 2008.”

Third Quarter Results
Net sales for the third quarter increased to $82.3 million compared to $78.1 million a year ago. The increase in sales was primarily driven by a 25.0% increase in retail revenues, combined with a slight increase in wholesale sales.

Gross profit in the third quarter of 2007 was $29.3 million, or 35.6% of sales, compared to $32.1 million or 41.1% of sales, for the same period last year. The decline was primarily due to pricing pressure and an increase in product costs.

Selling, general and administrative (SG&A) expenses were $25.1 million, or 30.5% of sales, for the third quarter of 2007 compared to $22.6 million, or 28.9% of sales, a year ago. The increase in SG&A was driven by additional selling and distribution expenses to support the future growth of the retail division.

Income from operations was $4.2 million, or 5.1% of net sales, for the period compared to $9.5 million, or 12.2% of net sales, in the prior year.

Funded Debt and Interest Expense
The Company’s funded debt at September 30, 2007 was $122.8 million versus $127.3 million at September 30, 2006. Interest expense was $2.9 million for the third quarter of 2007 versus $2.9 million for the same period last year.

Inventory
Inventory decreased $2.6 million, or 3.0%, to $85.1 million at September 30, 2007 compared with $87.7 million on the same date a year ago. The decrease in inventory is due to our focus on improved inventory management through the scheduling of receipts to more closely coincide with projected shipments and the reduction of discontinued products.

Outlook
The Company stated that based on actual third quarter results and better visibility into the fourth quarter, it now expects net sales for fiscal 2007 to be approximately $280 million compared to its previous guidance of approximately $277 million, and earnings per share of approximately $0.30 versus its previous guidance of approximately $1.16.

About Rocky Brands, Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky Outdoor Gear^®, Georgia Boot^®, Durango^®, Lehigh^®, and the licensed brands Dickies^®, Zumfoot^® and Michelin^®.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and include statements in this press release regarding margins in 2008 (paragraph 3) and expected 2007 revenues and earnings (paragraph 10). These forward-looking statements involve numerous risks and uncertainties, including, without limitation, the various risks inherent in the Company’s business as set forth in periodic reports filed with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2006 (filed March 15, 2007), the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2007 (filed May 9, 2007) and the Company’s quarterly report on Form 10-Q for the quarter ended June 30, 2007 (filed July 31, 2007). One or more of these factors have affected historical results, and could in the future affect the Company’s businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company, or any other person should not regard the inclusion of such information as a representation that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.

Rocky Brands, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

	September 30, 2007			December 31, 2006			September 30, 2006
	Unaudited						Unaudited
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents	$	2,707,273		$	3,731,253		$	2,327,977
Trade receivables-net		81,279,819			65,259,580			81,054,978
Other receivables		1,064,827			1,159,444			987,939
Inventories		85,081,978			77,948,976			87,710,315
Deferred income taxes		3,902,775			3,902,775			133,783
Income tax receivable		2,743,633			3,632,808			10,873
Prepaid expenses		1,494,045			1,581,303			2,320,048
Total current assets		178,274,350			157,216,139			174,545,913
FIXED ASSETS-net		25,233,363			24,349,674			24,245,710
DEFERRED PENSION ASSET		53,866			13,564			1,563,639
IDENTIFIED INTANGIBLES & GOODWILL		61,548,322			61,979,659			62,844,903
OTHER ASSETS		2,618,442			2,796,776			2,815,654
TOTAL ASSETS	$	267,728,343		$	246,355,812		$	266,015,819
LIABILITIES AND SHAREHOLDERS’ EQUITY:
CURRENT LIABILITIES:
Accounts payable	$	15,514,243		$	10,162,291		$	16,290,173
Current maturities-long term debt		318,024			7,288,474			7,282,374
Accrued expenses:
Taxes-other		571,718			552,782			255,598
Other		6,150,386			3,643,503			3,606,520
Total current liabilities		22,554,371			21,647,050			27,434,665
LONG TERM DEBT-less current maturities		122,438,442			103,203,107			120,040,154
DEFERRED INCOME TAXES		17,009,025			17,009,025			13,477,939
DEFERRED LIABILITIES		335,534			368,580			379,144
TOTAL LIABILITIES		162,337,372			142,227,762			161,331,902
SHAREHOLDERS’ EQUITY:
Common stock, no par value; 25,000,000 shares authorized; issued and outstanding September 30, 2007 - 5,488,293; December 31, 2006 - 5,417,198; September 30, 2006 - 5,405,098		53,897,100			53,238,841			52,723,651
Accumulated other comprehensive loss		(916,463	)		(993,182	)		—
Retained earnings		52,410,334			51,882,391			51,960,266
Total shareholders’ equity		105,390,971			104,128,050			104,683,917
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	267,728,343		$	246,355,812		$	266,015,819

Rocky Brands, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2007			2006			2007			2006
NET SALES	$	82,308,547		$	78,114,725		$	202,763,235		$	192,937,394
COST OF GOODS SOLD		53,030,023			45,998,535			123,477,571			111,831,955
GROSS MARGIN		29,278,524			32,116,190			79,285,664			81,105,439
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		25,108,505			22,606,038			70,222,025			65,166,515
INCOME FROM OPERATIONS		4,170,019			9,510,152			9,063,639			15,938,924
OTHER INCOME AND (EXPENSES):
Interest expense		(2,943,139	)		(2,883,656	)		(8,786,060	)		(8,295,285	)
Other-net		131,365			73,056			95,364			131,518
Total other-net		(2,811,774	)		(2,810,600	)		(8,690,696	)		(8,163,767	)
INCOME BEFORE INCOME TAXES		1,358,245			6,699,552			372,943			7,775,157
INCOME TAX EXPENSE/(BENEFIT)		209,000			2,480,000			(155,000	)		2,878,000
NET INCOME	$	1,149,245		$	4,219,552		$	527,943		$	4,897,157
NET INCOME PER SHARE
Basic	$	0.21		$	0.78		$	0.10		$	0.91
Diluted	$	0.21		$	0.76		$	0.09		$	0.88
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic		5,484,923			5,400,647			5,472,233			5,386,254
Diluted		5,594,707			5,553,028			5,590,879			5,588,616