Russell (RML) 8-K Fourth Quarter and Year End Results

Exhibit 99.1

For Immediate Release:	Contact:	Roger Holliday (Financial)
		(678) 742-8181
		Nancy Young (Media)
		(678) 742-8118

RUSSELL CORPORATION REPORTS

FOURTH QUARTER AND YEAR END RESULTS

Sales increase 6.2% for the quarter, 10.5% for the year

EPS of $0.36 in the quarter and $1.03 for full year

Exceeds guidance due to favorable tax expense

Reiterates 2006 annual estimates

ATLANTA, GA (February 16, 2006) – Russell Corporation (NYSE: RML) today reported fiscal 2005 fourth quarter sales of $354.6 million, an increase of 6.2% over the $334.0 million reported in the same period a year ago. The Company reported earnings of $11.8 million, or $0.36 per diluted share, versus $0.31 per diluted share reported in the fourth quarter of 2004. Net income in the fourth quarter of 2005 was impacted by a tax benefit in the quarter.

Sales for the quarter ended December 31, 2005 included $27 million in incremental sales from Brooks, the only acquisition owned for less than a year. Beyond Brooks, sales gains were strongest in the Artwear business, which experienced growth in the quarter in the mid-teens.

Gross profit for the fourth quarter of 2005 was $99.9 million, or a 28.2% gross margin as a percent of sales, versus a gross profit of $97.1 million, or a 29.1% gross margin, in the prior year. The positive impact of increased unit volumes in Artwear and higher margins associated with Brooks was generally offset by a shift in product mix and increased year-over-year costs for polyester, transportation and energy. Losses at Huffy Sports also negatively affected results.

For the 2005 fourth quarter, selling, general and administrative expenses (“SG&A”) were up $6.2 million to $79.9 million. Excluding the SG&A associated with Brooks, these expenses were lower than a year ago. For the quarter, the Company reported operating income of $19.5 million, versus $24.9 million in the same quarter last year.

During the quarter, the Company recognized the majority of its profits in lower tax countries. The Company benefited from significantly improved profitability in its RLA Manufacturing subsidiary, responsible for the management of Russell’s Latin American manufacturing operations. Additionally, Spalding experienced a greater proportion of its profits outside the U.S. through its international licensing subsidiary, based in Ireland. With a greater proportion of profits in these areas, the effective tax rate was significantly reduced in the quarter versus prior year. The Company also benefited from a one-time resolution of certain tax matters relating to previous years.

Year-to-date Results

For the full year ended December 31, 2005, net sales increased $136.4 million to $1.435 billion, a 10.5% increase over the prior year’s sales of $1.298 billion. Excluding the sales from acquisitions owned for less than a year, sales were $1.271 billion.

“As indicated earlier, we were disappointed in our 2005 financial results. Despite certain areas of our business having record performances, such as international apparel and Brooks, we did experience disappointing sales overall in our Sporting Goods segment. Unfilled orders earlier in the year contributed to weaker sales results for the balance of the year for Russell Athletic. Additionally, sales weakness in Mossy Oak continued throughout the year, with declines of approximately 20 percent from 2004,” said Jack Ward, chairman and chief executive officer.

Gross profit was $393.6 million, or a 27.4% gross margin as a percent of sales, for fiscal 2005 versus a gross profit of $363.9 million, or a 28.0% gross margin, in the prior year. SG&A expenses for fiscal 2005 were $311.1 million, or 21.7% of net sales, versus $270.3 million, or 20.8% of net sales, in fiscal 2004. Excluding the acquisitions owned for less than a year, SG&A was 21.0% of sales in 2005.

Operating income in 2005 was $84.4 million versus $100.8 million last year. With the impact of the tax benefit in the fourth quarter, the effective rate for the year was approximately 21%, yielding net income for fiscal 2005 of $34.4 million, or $1.03 per share on a fully diluted basis. Net income for 2004 was $47.9 million, or $1.46 per diluted share.

Outlook

“We feel positive about our many growth opportunities and our cost reduction initiatives outlined in January. We also have already begun to see the benefits from our lean manufacturing initiatives and have experienced a broad base of support for these efforts throughout our operations,” said Ward. “Russell’s brands remain solidly positioned with our customers, and we continue to build on our reputation for quality, authenticity and performance, particularly with our primary brands, Spalding, Russell Athletic, Jerzees and Brooks.”

The Company reaffirmed its previous annual guidance for 2006. Russell expects sales for fiscal 2006 to be in the $1.450 to $1.480 billion range. As previously announced, Russell expects GAAP earnings per fully diluted share of $0.32 to $0.59, as charges associated with the previously announced restructuring are estimated to be in the $0.66 to $0.78 range for 2006. Excluding those charges, ongoing earnings are expected to be in the $1.10 to $1.25 range.

Additionally, the Company expects to record an effective tax rate for 2006 of 30% or less.

The Company reported that it expects to report a loss in the first quarter of 2006 in the range of $0.29 to $0.41, as approximately half of the expected 2006 restructuring charges are scheduled to impact the first quarter. Ongoing earnings are expected to be in a range from ($0.02) to $0.04 per share for the quarter reflecting the Company’s planned shift to the FIFO (First In First Out) method for accounting for inventory.

Conference Call Information

A conference call is scheduled for today at 8:30 a.m. Eastern Time to discuss the 2005 financial results and 2006 plans. To listen, please call the conference call line at (877) 264-7865 domestically, and (706) 634-4719, internationally, prior to the scheduled start time and use conference ID number 4708755. This conference call will also be broadcast live on the Internet. A link to the broadcast can be found on the Investor Relations homepage of the Company’s website athttp://www.russellcorp.com.

If you are unable to participate in this conference call, a replay will be available through February 23, 2006 by dialing (800) 642-1687 domestically and (706) 645-9291 internationally and entering 4708755. Alternatively, a link to the replay of the call will be available on the Investor Relations homepage of the Company’s website through May 25, 2006.

About Russell Corporation

Russell Corporation is a leading branded athletic and sporting goods company marketing athletic apparel, uniforms, footwear and equipment for a wide variety of sports, outdoor and fitness activities. The Company’s major brands included in the Sporting Goods Segment are: Russell Athletic^®, Spalding^®, Brooks^®, Huffy Sports^®, Bike^®, Moving Comfort^®, AAI^® and Mossy Oak^®. The predominant brand in the Activewear segment is JERZEES^®. The Company’s common stock is listed on the New York Stock Exchange under the symbol RML and its web site address ishttp://www.russellcorp.com.

Forward-Looking Statement

This Press Release includes certain “forward-looking” statements (as defined by the Private Securities Litigation Reform Act of 1995 (the “Act”)) that describe our beliefs concerning future business conditions, prospects, growth opportunities, and the outlook for the Company based upon currently available information. Wherever possible, we have identified these statements by words such as “anticipate”, “believe”, “intend”, “expect”, “continue”, “could”, “may”, “plan”, “project”, “predict”, “will” and similar expressions. We include such statements because we believe it is important to communicate our future expectations to our shareholders, and we therefore make such statements in reliance upon the safe harbor provisions of the Act. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, any projections of sales and earnings. These forward-looking statements are based upon assumptions that we believe are reasonable. Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to: (a) the ultimate cost of the restructuring, and our ability to complete the restructuring and achieve cost reductions within the projected time frame and with the expected savings; (b) factors impacting our ability to achieve sales growth, including inherent risks in the marketplace associated with new products, the effectiveness of increased marketing efforts, significant competitive activity and related pricing pressures; and (c) other risk factors listed in our reports filed with the Securities and Exchange Commission from time to time. We undertake no obligation to revise the forward-looking statements included in this Press Release to reflect any future events or circumstances. Our actual results, performance or achievements could differ materially from the results expressed or implied by any forward-looking statements contained in this Press Release.

RUSSELL CORPORATION

Consolidated Statements of Income

(In Thousands Except Share and Per Share Amounts)

	Quarter-to-Date						Year-to-Date
	13 Weeks Ended December 31, 2005			13 Weeks Ended January 1, 2005			52 Weeks Ended December 31, 2005			52 Weeks Ended January 1, 2005
	(Unaudited)			(Unaudited)			(Unaudited)			(1)
Net sales	$	354,631		$	334,032		$	1,434,605		$	1,298,252
Cost of goods sold		254,771			236,933			1,041,037			934,372
Gross profit		99,860			97,099			393,568			363,880
Selling, general and administrative expenses		79,866			73,695			311,070			270,305
Other (income) expense - net		479			(1,476	)		(1,874	)		(7,216	)
Operating income		19,515			24,880			84,372			100,791
Interest expense, net		9,817			7,680			39,153			30,843
Non-controlling interests		255			1,081			1,820			2,021
Income before income taxes		9,443			16,119			43,399			67,927
Provision (benefit) for income taxes		(2,382	)		5,815			8,969			19,991
Net income	$	11,825		$	10,304		$	34,430		$	47,936
Weighted-average common shares outstanding:
Basic		32,237,863			32,750,260			33,057,179			32,668,376
Diluted		33,239,330			33,000,155			33,293,900			32,897,559
Net income per common share:
Basic	$	0.37		$	0.31		$	1.04		$	1.47
Diluted	$	0.36		$	0.31		$	1.03		$	1.46

(1) Derived from the audited financial statements as of January 1, 2005

RUSSELL CORPORATION

Consolidated Balance Sheets

(In Thousands Except Share and Per Share Amounts)

		December 31, 2005			January 1, 2005
		(Unaudited)			(1)
ASSETS
Current assets:	��
Cash		$	42,600		$	29,816
Accounts receivable, net			229,552			212,063
Inventories			440,318			411,701
Prepaid expenses and other current assets			25,270			17,737
Income tax receivable			5,897			6,101
Total current assets			743,637			677,418
Property, plant & equipment, net			315,721			322,890
Other assets			252,482			253,801
Total assets		$	1,311,840		$	1,254,109
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	207,804		$	190,422
Deferred income taxes			14,829			4,054
Short-term debt			2,689			18,190
Current maturities of long-term debt			2,067			6,938
Total current liabilities			227,389			219,604
Long-term debt, less current maturities			398,797			372,921
Deferred liabilities:
Income taxes			9,139			20,286
Pension and other			72,435			64,351
Non-controlling interests			15,242			14,096
Commitments and contingencies			—			—
Stockholders’ equity:
Common stock, par value $.01 per share; authorized
150,000,000 shares, issued 41,419,958 shares			414			414
Paid-in capital			35,833			40,716
Retained earnings			784,958			755,799
Treasury stock, at cost			(190,212	)		(201,171	)
Accumulated other comprehensive loss			(42,155	)		(32,907	)
Total stockholders’ equity			588,838			562,851
Total liabilities & stockholders’ equity		$	1,311,840		$	1,254,109

(1) Derived from the audited financial statements as of January 1, 2005

RUSSELL CORPORATION

Consolidated Statements of Cash Flows

(In Thousands)

	52 Weeks Ended December 31, 2005			52 Weeks Ended January 1, 2005
	(Unaudited)			(1)
Operating Activities:
Net income	$	34,430		$	47,936
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		48,599			46,627
Amortization		3,734			1,395
Earnings of non-controlling interests		1,820			2,021
Provision for deferred income taxes		4,333			(1,708	)
Gain on sale of assets		(533	)		(5,387	)
Other		5,309			8,548
Changes in operating assets & liabilities:
Trade accounts receivable		(25,853	)		(8,664	)
Inventories		(32,549	)		(26,194	)
Prepaid expenses and other current assets		(7,313	)		1,164
Other assets		(2,006	)		7,037
Accounts payable and accrued expenses		23,912			6,378
Income taxes		622			8,137
Pension and other deferred liabilities		(7,682	)		(6,001	)
Net cash provided by operating activities		46,823			81,289
Investing Activities:
Purchases of property, plant & equipment		(42,471	)		(35,494	)
Proceeds from the sale of property, plant & equipment and other assets		2,996			13,697
Net cash refund from (paid for) acquisitions, joint ventures and other		1,031			(158,370	)
Other		(46	)		1,769
Net cash used in investing activities		(38,490	)		(178,398	)
Financing Activities:
Borrowings on credit facility and other – net		18,437			91,307
(Payments) borrowings on short-term debt		(12,839	)		9,692
Dividends on common stock		(5,271	)		(5,216	)
Treasury stock re-issued		5,057			3,839
Cost of common stock for treasury		(709	)		(80	)
Net cash provided by financing activities		4,675			99,542
Effect of exchange rate changes on cash		(224	)		(592	)
Net increase in cash		12,784			1,841
Increase in cash from consolidating Frontier Yarns, LLC		—			7,859
Cash balance at beginning of period		29,816			20,116
Cash balance at end of period	$	42,600		$	29,816

(1) Derived from the audited financial statements as of January 1, 2005

RUSSELL CORPORATION

FINANCIAL DATA BY REPORTABLE SEGMENT

(in thousands)

	Quarter-to-Date						Year-to-Date
	13 Weeks Ended December 31, 2005			13 Weeks Ended January 1, 2005			52 Weeks Ended December 31, 2005			52 Weeks Ended January 1, 2005
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
NET SALES
Sporting Goods	$	169,802		$	144,906		$	699,708		$	582,967
Activewear		170,675			174,582			674,177			658,763
All Other		14,154			14,544			60,720			56,522
TOTAL NET SALES	$	354,631		$	334,032		$	1,434,605		$	1,298,252
SEGMENT OPERATING INCOME
Sporting Goods	$	4,350		$	10,306		$	41,184		$	58,810
Activewear		19,768			16,299			54,092			52,100
All Other		1,163			2,763			6,422			7,050
TOTAL SEGMENT OPERATING INCOME	$	25,281		$	29,368		$	101,698		$	117,960
Reconciliation of total segment operating income to consolidated income before income taxes:
Total Segment operating Income	$	25,281		$	29,368		$	101,698		$	117,960
Unallocated amounts:
Corporate Expenses		(6,021	)		(5,569	)		(19,146	)		(19,190	)
Interest Expense, net		(9,817	)		(7,680	)		(39,153	)		(30,843	)
CONSOLIDATED INCOME BEFORE INCOME TAXES	$	9,443		$	16,119		$	43,399		$	67,927