Ruger Reports 44-cents Per Share First Quarter Earnings

SOUTHPORT, CONNECTICUT, April 27, 2010–Sturm, Ruger & Company, Inc. (NYSE-RGR), announced that for the first quarter of 2010, the Company reported net sales of $68.3 million and earnings per share of 44¢, compared with sales of $63.5 million and earnings per share of 30¢ in the first quarter of 2009.

Chief Executive Officer Michael O. Fifer made the following comments related to the Company’s first quarter of 2010:

* Our year-over-year performance was highlighted by a 47% increase in earnings and an 8% increase in net sales.

* Demand for our products remained strong in the first quarter of 2010. Estimated sell-through of our products from distributors to retailers in the first quarter of 2010 increased by approximately 8% from the first quarter of 2009 and approximately 21% from the fourth quarter of 2009. This sales growth, despite declines of 4% and 5% in National Instant Criminal Background Check System (NICS) background checks over the same periods, suggests we gained market share.

* Our firearms unit production increased 3% from the fourth quarter of 2009, and 15% from the first quarter of 2009.

* Our backlog grew to 239,900 units and $72 million at the end of the first quarter of 2010, from 181,000 units and $60 million at the end of 2009.

* In January, we launched the SR9c, a compact version of the full-size SR9 striker-fired, semi-automatic pistol. The SR9c has been very popular since its introduction, and it has also generated renewed interest in the full-size SR9 pistol.

* New product introductions, including the new SR9c pistol, remain a strong driver of demand, and products introduced since January 2008 represented $27 million or 39% percent of sales in the first quarter of 2010.

* Cash generated from operations during the first quarter of 2010 was $10 million. At the end of the first quarter of 2010, our cash and equivalents totaled $59 million. Our current ratio is 3.1 to 1 and we have no debt.

* During the first quarter of 2010, capital expenditures totaled $5.7 million, much of it related to tooling and equipment for new products. We expect to invest approximately $12 to $18 million for capital expenditures during 2010.

* At the end of the first quarter of 2010, stockholders’ equity was $103 million, which equates to a book value of $5.39 per share, of which $3.08 per share was cash and equivalents.

Chief Executive Officer Michael O. Fifer issued a letter to Ruger shareholders today, and the Company filed its Quarterly Report on Form 10-Q for the first quarter of 2010. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release.

Both the Quarterly Report on Form 10-Q and the letter to Ruger shareholders on Form 8-K are available on the SEC website at www.sec.gov and the Ruger website at www.ruger.com/corporate/. Investors are urged to read the complete Form 10-Q and the letter to shareholders to ensure that they have adequate information to make informed investment judgments.

About Sturm, Ruger

Sturm, Ruger was founded in 1949 and is one of the nation’s leading manufacturers of high-quality firearms for the commercial sporting market. Sturm, Ruger is headquartered in Southport, CT, with manufacturing facilities located in Newport, NH and Prescott, AZ.