Mr. Ruger directed the growth of the Company from its incorporation in 1949 to its current position as the nation's largest producer of sporting firearms. Mr. Ruger intends to remain on the Board of Directors as Chairman Emeritus and as a Director and will serve as a consultant to the Company.

In accepting, with great reluctance, Mr. Ruger's resignation as Chairman,
the Board formally recognized the immense contributions he has made to the Company throughout its 51-year history, and his many years of service in providing the citizens of America with the highest-quality sporting firearms. The Company will continue to value his wisdom and counsel as it moves into the 21st century.

In related actions, the Board announced the following management promotions effective immediately. Mr. William B. Ruger, Jr. was elected to the position of Chairman of the Board of Directors and Chief Executive Officer. Mr. Stephen Sanetti was elected Vice Chairman, Senior Executive Vice President and General Counsel. Mr. Erle G. Blanchard was elected to the position of Vice Chairman, President, Chief Operating Officer and Treasurer. The Board also voted to increase the number of Directors to ten and elected Mr. Blanchard as a director of the company.