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                               EXHIBIT (a)(1)(iii)

                             Letter to Stockholders

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ESCALADE LETTERHEAD

February 24, 2000

Dear Stockholder:

     Escalade, Incorporated is offering to purchase up to 700,000 shares of our
common stock (representing approximately 24% of the currently outstanding
shares), at a price not less than $14.50 nor more than $18.00 per share. We are
conducting the offer through a procedure commonly referred to as a "Dutch
Auction." This procedure allows you to select the price within that range at
which you are willing to sell all or a portion of your shares to us.

     Based upon the number of shares tendered and the prices specified by the
tendering stockholders, we will determine the single per share price within that
range that will allow it to buy 700,000 shares (or such lesser number of shares
that are properly tendered). All of the shares that are properly tendered at
prices at or below that purchase price (and are not withdrawn) will, subject to
possible proration, conditional tender and provisions relating to the tender of
"odd lots," be purchased for cash at that purchase price, net to the selling
stockholder. All other shares that have been tendered and not purchased will be
returned to the stockholder.

     If you do not wish to participate in the offer, you do not need to take any
action.

     The offer is explained in detail in the enclosed Offer to Purchase and
Letter of Transmittal. If you want to tender your shares, the instructions on
how to do so are also explained in detail in the enclosed materials. I encourage
you to read these materials carefully before making any decision with respect to
the offer.

     Neither Escalade nor our Board of Directors or senior management makes any
recommendation to any stockholder whether to tender all or any shares. The
executive officers have advised us that they do not intend to tender any shares
in this offer. The remaining directors have not made a final decision as to
whether they will participate in this offer or whether they would tender only a
portion of their shares and not all of their shares.

Sincerely,

/s/Robert E. Griffin
   Chairman of the Board