<SEC-DOCUMENT>0001174947-14-000287.txt : 20140731
<SEC-HEADER>0001174947-14-000287.hdr.sgml : 20140731
<ACCEPTANCE-DATETIME>20140731170202
ACCESSION NUMBER:		0001174947-14-000287
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20140730
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20140731
DATE AS OF CHANGE:		20140731

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STURM RUGER & CO INC
		CENTRAL INDEX KEY:			0000095029
		STANDARD INDUSTRIAL CLASSIFICATION:	ORDNANCE & ACCESSORIES, (NO VEHICLES/GUIDED MISSILES) [3480]
		IRS NUMBER:				060633559
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10435
		FILM NUMBER:		141006998

	BUSINESS ADDRESS:	
		STREET 1:		1 LACEY PLACE
		CITY:			SOUTHPORT
		STATE:			CT
		ZIP:			06490
		BUSINESS PHONE:		2032597843

	MAIL ADDRESS:	
		STREET 2:		1 LACEY PLACE
		CITY:			SOUTHPORT
		STATE:			CT
		ZIP:			06490
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rgr0731148k.htm
<DESCRIPTION>FORM 8-K
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<P STYLE="font: bold 15pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 12pt">UNITED STATES</FONT></P>

<P STYLE="font: bold 15pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 12pt">SECURITIES
AND EXCHANGE COMMISSION</FONT></P>

<P STYLE="font: 15pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>Washington,
D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 15pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>FORM 8-K</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>CURRENT REPORT</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>Pursuant to
Section 13 or 15(d) of the</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>Securities
Exchange Act of 1934</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>Date of Report
(Date of earliest event reported)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>July 30, 2014</B></FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>STURM, RUGER &amp; COMPANY, INC.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">(Exact Name of
Registrant as Specified in its Charter)</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 35%; padding-right: 4pt; padding-left: 4pt"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>DELAWARE</B></FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">(State
        or Other Jurisdiction of Incorporation)</FONT></P></TD>
    <TD STYLE="width: 33%; padding-right: 4pt; padding-left: 4pt"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>001-10435</B></FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">(Commission
        File Number)</FONT></P></TD>
    <TD STYLE="width: 32%; padding-right: 4pt; padding-left: 4pt"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>06-0633559</B></FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">(IRS
        Employer Identification Number)</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: center"><FONT STYLE="font-size: 10pt"><B>ONE
LACEY PLACE, SOUTHPORT, CONNECTICUT 06890</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: center"><FONT STYLE="font-size: 10pt">(Address
of Principal Executive Offices) (Zip Code)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">Registrant&rsquo;s
telephone number, including area code <B>(203) 259-7843</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (<I>see</I> General Instruction A.2. below):</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Wingdings">o </FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Wingdings">o </FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Wingdings">o </FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Wingdings">o </FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Item 7.01. Regulation FD Disclosure.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">We are furnishing
this Report on Form 8-K in connection with the disclosure of information during a conference call and webcast on July 30, 2014
discussing our second quarter 2014 financial results. The transcript of the conference call and webcast is included as Exhibit
99.1 to this Report on Form 8-K.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The information
in this Report on Form 8-K (including the exhibit) is furnished pursuant to Item 7.01 and shall not be deemed to be &ldquo;filed&rdquo;
for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that
section. This Report on Form 8-K will not be deemed an admission as to the materiality of any information in the Report that is
required to be disclosed solely by Regulation FD.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The text included
with this Report on Form 8-K and the replay of the conference call and webcast on July 30, 2014 is available on our website located
at www.ruger.com/corporate, although we reserve the right to discontinue that availability at any time.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Certain
statements contained in this Report on Form 8-K (including the exhibit) may be deemed to be forward-looking statements under federal
securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking
statements include, but are not limited to, statements regarding market demand, sales levels of firearms, anticipated castings
sales and earnings, the need for external financing for operations or capital expenditures, the results of pending litigation
against the Company, the impact of future firearms control and environmental legislation, and accounting estimates. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes
no obligation to publish revised forward-looking statements to reflect events or circumstances after the date such forward-looking
statements are made or to reflect the occurrence of subsequent unanticipated events.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"></FONT></P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt"><U>Exhibit No</U>.</FONT></TD><TD><FONT STYLE="font-size: 10pt"><U>Description</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><FONT STYLE="font-size: 10pt">99.1</FONT></TD><TD><FONT STYLE="font-size: 10pt">Transcript of conference call and webcast conducted on July 30, 2014.</FONT></TD></TR></TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>


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<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">SIGNATURES</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, hereunto duly authorized.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3"><FONT STYLE="font-family: Times New Roman, Times, Serif">STURM, RUGER &amp; COMPANY, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">/S/ THOMAS A. DINEEN</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 55%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Name:</FONT></TD>
    <TD STYLE="width: 34%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Thomas A. Dineen</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Title:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Principal Financial Officer,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Principal Accounting Officer,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Vice President, Treasurer and </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Chief Financial <FONT STYLE="font-family: Times New Roman, Times, Serif">Officer</FONT></TD></TR>
</TABLE>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Dated: July 30, 2014</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <td style="border-bottom: #006595 1pt solid; font:  bold 18pt Times New Roman, Times, Serif; padding-right: 0.25in; padding-left: 0.25in; text-align: left; color: #003399"><font style="font: normal 18pt Knowledge Light,sans-serif; color: #BCBEC0">THOMSON REUTERS STREETEVENTS</font></td></tr>
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    <td style="border-bottom: #006595 1pt solid; font:  bold 10pt Times New Roman, Times, Serif; padding-right: 0.25in; padding-left: 0.25in; text-align: left; color: #003399"><font style="font: 32pt Knowledge Medium,sans-serif; color: white">EDITED TRANSCRIPT</font></td></tr>
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    <td style="border-bottom: #006595 1pt solid; font:  bold 18pt Times New Roman, Times, Serif; padding-right: 0.25in; padding-left: 0.25in; text-align: left; color: #003399"><font style="font: normal 18pt Knowledge Light,sans-serif; color: white">RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</font></td></tr>
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    <td style="border-bottom: #006595 1pt solid; font:  bold 28pt Times New Roman, Times, Serif; padding-right: 0.25in; padding-left: 0.25in; text-align: left; color: #003399">&nbsp;</td></tr>
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    <td style="border-bottom: #006595 1pt solid; font:  bold 18pt Times New Roman, Times, Serif; padding-right: 0.25in; padding-left: 0.25in; text-align: left; color: #003399"><font style="font: normal 18pt Knowledge Light,sans-serif; color: white">EVENT DATE/TIME: JULY 30, 2014 / 01:00PM&nbsp;&nbsp;GMT </font></td></tr>
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
</TABLE>
<P STYLE="color: #003399; font:  bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="color: #6B9915; font: bold 9pt Arial Narrow, Helvetica, Sans-Serif; margin: 0 0 3pt; text-transform: uppercase">CORPORATE
PARTICIPANTS</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">Michael Fifer<FONT STYLE="font-weight: normal"><I>
Sturm, Ruger &amp; Co., Inc. - CEO</I></FONT></P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">Kevin Reid<FONT STYLE="font-weight: normal"><I>
Sturm, Ruger &amp; Co., Inc. - General Counsel</I></FONT></P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">Tom Dineen<FONT STYLE="font-weight: normal"><I>
Sturm, Ruger &amp; Co., Inc. - VP, Treasurer, CFO</I></FONT></P>

<P STYLE="color: #6B9915; font: bold 9pt Arial Narrow, Helvetica, Sans-Serif; margin: 0 0 3pt; text-transform: uppercase">&nbsp;</P>

<P STYLE="color: #6B9915; font: bold 9pt Arial Narrow, Helvetica, Sans-Serif; margin: 0 0 3pt; text-transform: uppercase">CONFERENCE
CALL PARTICIPANTS</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">Andrea James<FONT STYLE="font-weight: normal"><I>
Dougherty &amp; Co. - Analyst</I></FONT></P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">Brian Ruttenbur<FONT STYLE="font-weight: normal"><I>
CRT Capital - Analyst</I></FONT></P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">Brian Rafn<FONT STYLE="font-weight: normal"><I>
Morgan Dempsey Capital Management - Analyst</I></FONT></P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">Scott Hamann<FONT STYLE="font-weight: normal"><I>
KeyBanc Capital Markets - Analyst</I></FONT></P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">Achai Vonramoore<FONT STYLE="font-weight: normal"><I>
Cohen - Analyst</I></FONT></P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">David Bronstein<FONT STYLE="font-weight: normal"><I>
Kkb Capital - Analyst</I></FONT></P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 0 0 4pt; text-align: left">Jay Li<FONT STYLE="font-weight: normal"><I>
Trafelet Brokaw - Analyst</I></FONT></P>

<P STYLE="color: #6B9915; font: bold 9pt Arial Narrow, Helvetica, Sans-Serif; margin: 0 0 3pt; text-transform: uppercase">&nbsp;</P>

<P STYLE="color: #6B9915; font: bold 9pt Arial Narrow, Helvetica, Sans-Serif; margin: 0 0 3pt; text-transform: uppercase">PRESENTATION</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Good
day, ladies and gentlemen, and welcome to the second quarter 2014 Sturm, Ruger earnings conference call. My name is Kim, and I
will be your conference operator for today.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">At
this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions).
As a reminder, this conference is being recorded for replay purposes.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
would now like to turn the conference over to your host for today, Mr. Michael Fifer, Chief Executive Officer. Please proceed.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Welcome
to the Sturm, Ruger and Company second quarter 2014 conference call. I'd like to ask Kevin Reid, our General Counsel, to read the
caution on forward-looking statements, which will be followed by a quick overview of the second quarter, and then we can get into
your questions. Kevin?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Kevin Reid <I> - Sturm,
Ruger &amp; Co., Inc. - General Counsel </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thanks,
Mike. We want to remind everyone that statements made in the course of this meeting that state the Company's or management's intentions,
hopes, beliefs, expectations, or predictions of the future are forward-looking statements.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">It
is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking
statements is contained from time to time in the Company's SEC filings, including, but not limited to, the Company's reports on
form 10K for the year ended December 31st, 2013, and form 10Q for the quarter ended June 28th, 2014. Copies of these documents
may be obtained by contacting the Company or the SEC or on the Company's website at www.ruger.com/corporate or, of course, at the
SEC website at www.sec.gov.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We
do reference non-GAAP EBITDA. Please note that the reconciliation of GAAP net income to non-GAAP EBITDA can be found in our form
10K for the year ended December 31st, 2013, and our form 10Q for the quarter ended June 28th, 2014, which are also posted to our
website.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Furthermore,
the Company disclaims all responsibility to update forward-looking statements. Mike?</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thank
you, Kevin. First, the financial results for the second quarter of 2014. Net sales were $153.7 million, and fully diluted earnings
were $1.12 per share. For the corresponding period in 2013, net sells were $179.5 million, and fully diluted earnings were $1.63
per share.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">For
the first half of 2014, net sales were $323.5 million, and fully diluted earnings were $2.34 per share. For the corresponding period
in 2013, net sales were $335.4 million, and fully diluted earnings were $2.83 per share.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">The
second quarter of 2013, that's last year, was the high water mark in the Company's history, and, frankly, we're facing tough year-over-year
comparisons now. Our sales decreased 14% from the second quarter of 2013, due to a reduction in demand for firearms and firearms
accessories. Are earnings decreased 31%, and our EBITDA decreased 25% from the second quarter of 2013.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">The
main drivers of the reduced operating margins were the reduced sales of firearms and firearms accessories and increased depreciation
expense. The impact on earnings of the reduced firearms sales and reduced firearms accessories sales were about equal, offset somewhat
by our 2014 price increase for firearms.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Last
year, our firearms accessories sales were the highest they've ever been, and, as a category, they are our most profitable products.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">As
we've discussed before with respect to depreciation, at the end of 2013, the Company lowered its estimate of the useful life of
machinery and equipment from 10 years to 7 years to be more inline with our experience in the factories. This change, which became
effective December 31, 2013 resulted in increased depreciation expense of $2 million in the second quarter and $4 million in the
first half of 2014. We also have more depreciation expense because we've been adding equipment to support our rapid growth in recent
years.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Demand.
During the first half of 2014, there was a significant industry-wide reduction in firearms demand. We reported to you after the
first quarter that Ruger was not as adversely affected as the whole industry.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">In
the second quarter, however, the reduction in firearms demand affected Ruger too, with Ruger experiencing a 31% year-over-year
reduction in the estimated sell-through of Ruger products from the independent distributors to retailers.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">During
the same period, the NICS background checks decreased 12%. As a reminder, NICS refers to the National Instant Criminal Background
Check System numbers as adjusted by the National Shooting Sports Foundation.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">The
estimated sell-through of our products from distributors to retailers in the second quarter was adversely impacted by three main
factors. First, the reduction in overall industry demand, second, the aggressive price discounting of many of our competitors,
while we maintained our price discipline, and, third, the absence of significant new product introductions from Ruger [in] the
first half of the year.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">While
demand in the second quarter was disappointing, it is important to note that the estimated sell-through of our products for the
first half of the year was the second highest in the Company's history, exceeding even the estimated sell-through from the first
half of 2012, by 83,100 units, or 10%.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">New
products. We believe that new product introductions are a strong driver of demand, and were $57.1 million or 18% of firearm sales
in the first half of 2014.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">As
a reminder, we define new products as only those that were introduced in the past two years, and we include only major new products
and not minor line extensions.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We
did not launch any significant new products in the first half of 2014. However, yesterday, we launched the new LC9s, our new striker-fired
lightweight compact pistol. Several distributors have already called in and reported to us that they have sold through all of the
units that we shipped them for the launch.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">That
just reinforces our belief that new product development generates the highest return on investment but only after the new products
are launched.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We
are in a phase now where we have been making significant investments in R&amp;D and the capital expenditures to develop and support
new products, but we've been experiencing delays and have not met our planned launch schedules.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We
remain committed to new products. We will not cut costs or corners for short-term gains or risk jeopardizing our long-term strategy
of driving demand through innovation.</FONT></P>

<P>&nbsp;
<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Inventory
and production. Total unit production in the first half of 2014 increased 7% from the first half of 2013, although, in the second
quarter, production rates were reduced several times in response to the decline in estimated sell-through of our products from
the independent distributors to retailers.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We
review this sell-through for each of our product families twice a month in an effort to regulate production and mitigate increases
in inventory. Recently, each of those reviews has typically resulted in further incremental reductions to one or more product lines.
However, at our most recent review and for the first time in many months, in addition to a few more reductions, we also increased
production rates on one of our major product lines, the Ruger American Rifle.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">The
Company's finished goods inventory increased by 75,400 units during the first half of 2014. This is the first significant replenishment
of finished goods inventory in several years. Additional replenishment of finished goods inventory could increase the FIFO value
of finished goods inventory by as much as $10 million.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Distributor
inventories of the Company's products increased by 120,800 units during the first half of 2014, and we believe they now approximate
a reasonable level to support rapid fulfillment of retailer demand.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">As
demand began to slow in the second quarter, the Company managed its labor expense by limiting the hiring of new employees, reducing
overtime hours, and allowing attrition to reduce its total employee base. These efforts continue.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Furthermore,
the Company's compensation structure includes a significant performance base incentive component for all employees. During a period
of declining demand and results, this will further reduce labor expense.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Balance
sheet and cash flow. Our balance sheet at June 28th, 2014 was strong. Our cash totaled $47 million. Our current ratio is 2.3 to
1, and we have no debt.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">On
June 28th, 2014, stockholders equity was $207.1 million, which equates to a book value of $10.67 per share, of which $2.44 per
share was cash.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">In
the first half of 2014, we generated $36 million of cash from operations. We reinvested $23 million of that back into the Company
in the form of capital expenditures.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">With
the slowdown in demand, we have recently started to curtail capital investments by cancellation or delay of purchase orders and
the redeployment of manufactured equipment from mature production lines to new production lines for products currently in development.
We estimate that the capital expenditures in 2014, will approximate $40 million as we continue to prioritize new product development.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Cash
returned to shareholders. In the first half of 2014, we returned $20 million to our shareholders through the payment of dividends.
An additional $9 million in dividends will be paid to shareholders on August 29th, 2014, as our Board of Directors yesterday declared
a $0.45 per share quarterly dividend.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">As
a reminder, our dividend varies each quarter, as our practice is to pay a dividend of approximately 40% of net income.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Stock
repurchase authorization. Yesterday, the Board of Directors expanded its authorization to repurchase shares of common stock from
$25 million to $100 million. It is important to note that raising the repurchase authorization to $100 million does not mean we
are committed to buying $100 million of stock. We believe that the market should set the price of the stock and if it is trading
in the range of its average historical earnings multiples, then the Company should sit on the sideline. Shareholders interested
in purchasing stock should not have to compete with the Company to acquire more shares.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">But
if the stock price drops below the average of historical earnings multiples, that it is appropriate for the Company to step in
and opportunistically repurchase shares. The key is to create value for current and future shareholders too, and not just for the
exiting shareholders.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Those
were the highlights of the second quarter. I'd now like to respond to your questions to these results. As I've mentioned before,
please don't spend a lot of time asking forward-looking questions because I'm very unlikely to answer them. I don't know anything
more about the future than you do. But I am happy to discuss the results that we reported.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Operator,
can we please have the first question?</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
</TABLE>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="color: #6B9915; font: bold 9pt Arial Narrow, Helvetica, Sans-Serif; margin: 0 0 3pt; text-transform: uppercase">QUESTION
AND ANSWER</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">(Operator
Instructions) Andrea James from Dougherty and Company.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Andrea James <I> - Dougherty
&amp; Co. - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thanks
for the admonishment not to ask anything forward-looking.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Mike,
can you talk about what's going on with some of the delays in your new product introduction? You historically have been really
good at that, and it sounds like you've been having some trouble since the beginning of the year.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Andrea,
I don't think the troubles or challenges we face are any different than any other new product introduction. It's just all the sine
waves have merged together and we've, unfortunately, missed the planned launches we had for first and second quarter.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">However,
we've got a lot of great products stacked up and we're pleased to have launched the LC9s yesterday. I noticed that on all the forums
and boards, it's getting a lot of attention. People are pretty excited about it, especially when they see the graph of the dramatic
improvement in trigger pull.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
keep in mind that Ruger is known for very rugged and reliable products. They're safe. They operate well. We're very proud of them.
And we do extensive testing that I think goes well beyond anything our competitors do. And in the process of that testing, we find
things to improve. And we want to improve them before the consumers find them and decide to improve them.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">As
you may know, one of our large competitors just had a very unfortunate and embarrassing situation where they had to recall an entire
pistol product line and they don't have a fix for it and they're promising maybe some months in the future they'll send a replacement
gun to each person who owned one.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We're
not going to do that. We're avoiding that by really putting these guns through the ringer.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">You
may recall from an earlier conference call, I said there was one gun we launched only a year after we'd originally planned and
only after an additional 600,000 rounds of testing went on. So we make doggone sure our guns are ready for market when they come
out.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Andrea James <I> - Dougherty
&amp; Co. - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thank
you for the color there. And then your sell-through dropped by more than the NICS. Is there a market share read-through there,
do you think?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Absolutely.
We did a very good job with our promotions in the spring. Retailers brought in a lot of Ruger product. And I think you could probably
say that in Q1, we probably picked up some shelf space.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">But
what happened in Q2 was that there was a lot of, frankly, panic from our competitors. There are price deals that we hear about
each week, some of them that just they're staggering to hear, hard to believe.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
we've had retailers call us up and say, I've got to cost average my product. I've got to take this deal from Competitor X or Competitor
Y. They're embarrassed. They're apologetic. And they say, don't worry about it, you'll get all the shelf space back when this foolishness
ends. And I believe them.</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Andrea James <I> - Dougherty
&amp; Co. - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">You're
just refusing to race to the bottom on the pricing then?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Correct,
because I don't think we need to with our products. I think they're really good. And very important is, we have trained the wholesale
distributors and the retailers that their investment in Ruger inventory is safe. They don't have to worry about buying a Ruger
today and then next week we'll panic and cut the price by 20%. They know if they buy Ruger, it's safe, they can keep it on the
shelf, they don't have to worry about it.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Right
now, you went through kind of a classic phase in a down market where the competitor started putting out small deals, then they
put our medium-sized deals, and the retailers responded by buying them. And now the deals, in some cases, have gotten so stupid,
the retailers won't buy them at any price because they're terrified about what comes next. They don't want any inventory from some
of the competitors. And that hasn't happened once with Ruger.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Andrea James <I> - Dougherty
&amp; Co. - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I'm
sorry to hog the line. One final, and then I'll hop off. So you have a large backlog that you're drawing down upon. The sales surprised
me, a little bit lower in the quarter than what I expected because I thought you could still continue to sell against that backlog.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Is
it that you're giving the folks more time to take delivery on the hyper orders that they had placed? Or sort of what's going on
with the backlog, I guess I'd like to better understand?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Well,
remember, we don't manage the business by backlog, in fact, don't even pay a whole lot of attention to it. We focus on sell-through
and inventory levels.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
for years now, we've been trying to get the wholesalers to stock inventory to a level where they'd have six turns, maybe eight
turns at the high side. And frankly, for years, it was double digits and reached almost 40 turns at one point a year and a half
ago.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so we watch very carefully SKU by SKU what their inventory is, what their turns are, and we manage to that. We want them to carry
every product. We want them to carry a reasonable amount of it.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
we don't want to stuff the channel and we don't want to tie up dollars in slow-moving inventory. There's no point in me taking
them from six turns to three turns, because then if I come out with a new product, they don't have any cash to buy it.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
it's kind of a Golden Rule thing - we treat them the way we'd want to be treated. We're very, very respectful of their inventory
dollars and we probably work as hard or harder than they do to manage those inventory dollars. We want them to have a good representation
of Ruger, but not too much.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
now, as you see, just like we did in 2010, we are calibrating our production rates to manage that inventory at the distribution.
So I really don't care what the backlog is. Just because I've got the order on the books doesn't mean I'm going to ship it and
stuff it down their throat.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Andrea James <I> - Dougherty
&amp; Co. - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thank
you.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Brian
Ruttenbur from CRT Capital.</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
</TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Ruttenbur <I> -
CRT Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Couple
questions around gross margins. Trying to understand, in the quarter, you talk about gross margins were down sequentially year-over-year
for a variety of reasons, and it's mix of business, it's accessories, depreciation.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Can
you maybe breakdown in the quarter how much of that was mix versus accessories versus depreciation? And was any of this one time?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">The
only bit of it that you could consider one time, although it's going to occur a few more times before it's over, perhaps, is the
depreciation. Remember when we changed the estimated useful lives from 10 to 7, we had pieces of equipment out there that had seven
and a half, eight years, eight and a half, nine years. And so we had to, I think the word would be accelerate their depreciation
somewhat.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
in addition to -- so if you look at our depreciation, I think was up in the range of about $4 million for the quarter, half of
that was directly attributable to the change in estimated useful life. And I've disclosed that number each quarter just so you
can understand and account for it however you want to. And then understand the difference, the balance is just because I've been
buying a lot more equipment in recent years to support this incredible growth rate we've shown you.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Now,
that sort of gets your arms around depreciation. And as I just said a minute ago, the rest of it was largely reduction in firearms
units sold and reduction in accessories.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Now,
our accessories business is much, much smaller than our firearms business. And last year, however, it spiked. Because why? Because
the politicians were all trying to grab a headline, and so everybody's going to run out and limit magazine sales, for example.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
what did the consumers do? They went out of their way to buy every magazine they could get their hands on for fear that it would
be outlawed. And they wanted to get them so they could be grandfathered.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
frankly, the margins on magazines are spectacular, and they spiked to all-time record high, and, therefore, were a big driver in
addition to the firearms volume of earnings.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
this year, with the year-over-year comparison, you have a decline of magazines to sort of more normal levels and they're not creating
that huge boost to earnings. And so when viewed in a year-over-year comparison, before I take into account the firearms price increase,
the decline in firearms sales and the decline in accessories sales, although from a revenue perspective, they are of completely
different magnitudes, from an earnings perspective, they are really nearly identical.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
really, the big story here is the difference in the firearms accessories, and, primarily, magazines. And to a lesser degree, it's
the kind of expected reduction and a little bit of deleveraging from the firearms sales.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Ruttenbur <I> -
CRT Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
And as a follow-up to try and further understand the market, you're refusing to lower prices. What are the competitors giving?
As an example, if you buy X amount, there's a 20% discount. What kind of discounts are going on out there that are going to either,
A, the distributors, or, B, the end retailers?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Well,
for example, there's a fairly large company that's offering a hundred dollars cash rebate back on its guns. And I believe at one
point it was both the consumer got a hundred bucks back and the retailer got a hundred bucks back. And I can't believe they had
that much margin in the gun to start with.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Said
to me, that's just real panic. They're just trying to trade dollars and convert that inventory to cash.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We've
got a strong balance sheet. We don't have to do that kind of foolishness.</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Ruttenbur <I> -
CRT Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
And then last question, in terms of, I guess it's a little bit of unvisibility, and I'm trying not to ask a forward-looking question,
yet ask one, is to try and understand your visibility in terms of your units.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Only
units ordered in the quarter were 145,000, yet, you produced 552,000. Is this kind of a one-time event? That's a big dip, big differential
between units ordered and units produced.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Do
you anticipate that going forward or is this one time in nature?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Again,
I don't pay any attention to what was ordered. So the comparison you'd want to do is units produced to units sold through from
distributors to retailers. And the units sold through is substantially more than the units they ordered.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
I certainly hope it's a low-water mark, but I don't know that it is. I mean, typically, the third quarter is a low-water mark in
a normal year.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">But
even if the NICS checks started to rebound here, say on August 1st, this is a hypothetical, you've got, I believe fair amount of
inventory at the retailer level. You've got healthy inventories at the wholesaler level. So the retail-to-consumer sell-through
is going to pick up before the wholesale-to-retail, retailer sell-through picks up. And that will pick up before the wholesalers
come back to the manufacturers and ask for more product.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
even if it all rebounded tomorrow, there's going to be some lag before the wholesalers get to enjoy it and then a little bit more
lag before the manufacturers get to enjoy it. That's just typical.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so I wouldn't be at all surprised to see that even if the sell-through starts to pick up, it'll be a little while before wholesalers
ask for a lot more product.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Remember,
we had to basically force them to get into that six to eight turn range. They like 20 turn. They would much rather cross stock
product and take orders. And it's not a natural act to go back to actually selling product and warehousing product and running
credit. I don't know why anybody would be a wholesaler. It can't be that much fun.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Ruttenbur <I> -
CRT Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Last
question. Do you have any further plans to shift production from the northeast to the south? Is that something that you're seeing
your cost advantage -- I see a lot, you know, Freedom Group, others, are moving more protection down south.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Is
that a plan that you're going to pursue further where you're going to increase your production where the growth is going to be
in your southern manufacturing?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">No.
But as the Company grows, which I fully expect it to with more new products coming down the pike, some of that growth will occur,
probably most of the growth, net growth, will occur down in the south. But there are some cases where we might have a product line
from one of the more mature factories down to the south, but only to make room for a new product in one of those factories.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We
try to keep the new products where they're developed, because you've got all the engineers there and the support for it and the
knowledge. And we try only to move mature products that are pretty stable.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">But
we actually have product development teams at all three factories and expect new products from all of them in the coming years.</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Ruttenbur <I> -
CRT Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Great.
Thank you very much.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Brian
Rafn from Morgan Dempsey Capital Management.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Give
me a sense from the standpoint now that we're seeing a little more ebb and flow and more of kind of maybe a normalized demand in
the cycle, how does that affect any plans to move from the integrated furnace to some of the mini furnaces? Or is that kind of
on hold and still kind of in a testing?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Well,
we actually got a little bit of an opportunity when we discontinued the P95, which used a lot of castings. And before some of our
new products come on that will also use a number of castings, got a little dip in the capacity requirements.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so we used that to bring on mini foundry number two and actually shut down mini foundry number one so we could move it and take
advantage of some lessons learned and make it yet more efficient. And we've got a small window here, I think a month or two, to
finish that work before we get mini foundry number one back up, hopefully coincident with getting some new products starting to
move. And so I think we've got a bright future on the foundry side.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
Mike, is there any plans sometime in the future for putting a foundry down in Mayodan?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
think if we run out of capacity up north, which has all the infrastructure build, then it would make sense to do one down south
because we have the space and we have lower utility costs there.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">But
foundries are a bit unique in that they have an enormous amount of infrastructure overhead to support them. And so they come in
kind of big increments. They don't come in small ones. And while you might say that the utilities and lower labor costs and space
costs in the south would justify it all, it's a lot more complicated than that, and you've got to take into account how much overhead.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
it's still, for now anyway, cheaper to keep an incremental mini foundry up north than it is to stick it down South.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Yes,
okay. What is your sense, and you've talked about this in the past, though, of kind of motivating the wholesale dealers back to
a sense of religion relative to six to eight turns and to hold inventory and [to do] credits? What is kind of your ability? I mean,
you guys have always maintained that discipline, and I think you're looking for a reciprocity there. How much effect do you really
have?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
far, I think we're doing pretty good. These fellows have made a lot of money. Ruger was either their most profitable or second-most
profitable line for many years now, and I don't think they've forgotten that. And they are not worried about the value of their
investment in Ruger inventory, and that means a lot to them as well.</FONT></P>

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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
</TABLE>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
I think it's a pretty good, pretty strong relationship, and they count on us. And we've let them down a little bit on new products.
But they've seen their business grow tremendously with each of our new product introductions.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And,
in fact, on the LC9s, guys have already been calling this morning wanting more of them. They're upset about the amount of -- we
build thousands of guns before we launch. Well, they've already sold through their allocation. They're upset. They want more because
this is sort of a bright light right now in an otherwise dim period.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">They
love new products, and Ruger has probably been the most successful company in the industry viewed over several years in terms of
launching new products. And they know we've got, we're fairly sure, more engineers than anybody else and we're spending more on
it. We're more committed to it. And so they know what side their bread's buttered on. They're pretty happy with Ruger.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
And then from the standpoint --</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Oh,
actually, Brian, let me throw one more thing in that's really, really important.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We're
one of the only manufacturers that's true two-step. We don't screw them. We don't sell direct. We don't go around them. We're not
also selling to buying groups. We're committed to wholesale. And I think that matters to them as well.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
All right. Good point. Good point. Mike, relative to staffing engineers, you got Mayodan now. Are you looking at building any more
design teams as you go into 2014 here?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Absolutely.
The more bad news I hear from our competitors, although it's annoying in the short term, it makes a heck of an opportunity to accept
resumes from their best engineers.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
And then I'll ask one more. Are you seeing any commodity, raw materials, [feed] stock inflation, wood, two-point steel, castings,
ceramics, anything?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">No.
You just have the usual inflation on steel. As the overall worldwide economy improves, steel gets a little more expensive, the
lead times go out a little bit. But at this point it's not a problem at all.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
we actually got some wood that was headed towards one of our competitors and we wanted it, and we were able to snag it.</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">That's
good. All right. I'll get back in line. Thanks, Mike.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Scott
Hamann from KeyBanc Capital Markets.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Just
in terms of what you're seeing out there in the industry, you talked about some of the promos due to the excess inventory competitors
have. Have you seen some of the overall competitive inventory levels come down or the promotions start to ease at this point or
is that still going on?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
don't really have enough data on competitors' inventory to comment on that, I really don't.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
And then, is the -- did you have those thousand shipments in the second quarter of the LCP9s or was that kind of early third quarter?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">That
was early third quarter. What we typically will do is we will tell the distributors 10 days ahead of telling the public and we'll
tell them what their allocation of the new product is. And without exception, they're all hungry to get it.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Then
we ship it to them so that [it's] in their warehouse when we tell the retailers. And then they immediately solicit orders from
the retailers. And the key is so that once the retailers find out it starts to leak, and we want to have it at the retail stores
for that weekend. So that somebody who learns on Tuesday or Wednesday about the LC9s can race out to a store on Friday afternoon
or Saturday morning and it's there waiting for them. So that's our whole plan. So we wait not to the very last minute to ship,
but pretty close.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
And can you give us a sense on the cost structure as we kind of think about the breakdown between fixed and variable costs and
maybe how that kind of flows through COGS and the operating expenses?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">That's
an awfully broad general question. I honestly don't think I can be a lot of help on that one.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Is
this just like the rule of thumb like maybe X percent is kind of fixed and, I mean any -- no?</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">That's
kind of too much detail for somebody like me to have at his fingertips here. There is some deleveraging as things come down. And
also, hidden in there it might look like deleveraging but it isn't really, is the amount we are investing in new products. Some
of it's capitalized, but not much - really, just the equipment. And the rest all gets expensed.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
new products, as I mentioned, are absolutely our highest return on investments, but not until you start shipping them. While they're
in development and they're in testing, they're just a big old drain.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
And then just finally on the inventory question at the distributor level, I think you highlighted a target, maybe it was last quarter,
and it seems like you got closer but maybe not quite there, but I think the industry's maybe been a little bit softer.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
do you feel like you're at the appropriate level right now with that distributor inventory, such that you don't need to get to
that, I think the number was 360 - you can correct me if I'm wrong - going forward?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Yes.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
Thanks.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">[Achai
Vonramoore] from Cohen.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Achai Vonramoore <I> -
Cohen - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thank
you very much for taking my question. Mike, could you give us some color on the split in your business between long guns and handguns
in terms of sales, what you're seeing in terms of discounting, and maybe in terms of inventory levels?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We
don't actually disclose that information in terms of sales or specific inventory levels. But both have been major contributors.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">It's
funny, even that goes in cycles. What I first got to the Company, I think long guns were a larger contributor. And then there was
a period of time after we started introducing small concealed-carry firearms, that the handguns kind of took the lead. And then
we came out with some new exciting long guns, and then they came back in.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so both are significant contributors. They're both very important to our business.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">In
terms of inventory levels, we go right down to the specific SKU. We dramatically emphasize mixed-model production. Look, a year
ago, all you had to do was produce as many guns as you could. And we actually took some families and we eliminated SKUs so that
we could be more efficient and produce more units.</FONT></P>

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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">But
as the market shifted and there started to be a decline in demand, suddenly, the most important thing you could do for a retailer
was give them a whole variety of guns. Rather than just a whole lot of, say 4 SKUs, he needed 12 SKUs in that family.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so we shifted gears away from just chasing volume to really focusing on mixed-model production. And we look at it literally down
to the individual SKU. And if there's an item on order which a wholesaler doesn't have in inventory, we're building that product.
We're going to make sure they have available to them.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so we really carefully manage the production and the inventory of every single item.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Achai Vonramoore <I> -
Cohen - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
guess the point of the question was that the NICS data looks like it's been coming off much more for long guns than hand guns.
Can you give us any color without obviously disclosing percent of change, just general color in terms of relative strength of one
or the other of those two sectors?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Well,
perhaps I can give you another way of looking at it. If you look at the last cycle we went through, which was a huge run-up in
early 2009, and then a big let off in late 2009, and then kind of a slower recovery in 2010, our observation during that period
was that the long guns, particularly MSRs, ran up the fastest in early 2009, and then they declined the fastest.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
the handguns seemed to be much less affected. They didn't climb as fast and they didn't decline as fast either. And a difference
that we're observing now is that I would say both categories are behaving in a more similar fashion.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Again,
MSRs did go up the fastest last year answer they did come down the fastest. But handguns saw a little bit of it too, unlike in
2009, 2010, when we did not observe that on the handgun side.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Achai Vonramoore <I> -
Cohen - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Terrific.
And last one, can you give us any color in terms of the increasing availability of ammo? What impact has that had on your business?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Well,
the unavailability is what impacts us. And .22 Long rifle still continues to be the biggest challenge for us. We still have people
telling us, consumers telling us they're deferring purchases of our rimfire products because they're still struggling to find ammo.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">But
certainly, on other centerfire ammos, whether it's .223 for the rifles or nine millimeter for the handguns, that appears to be
coming much more available and the prices seem to be coming off their peaks. But we still need rimfire ammo out there.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Achai Vonramoore <I> -
Cohen - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thank
you very much.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">David
Bronstein from Kkb Capital.</FONT></P>

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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">David Bronstein <I> -
Kkb Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">That
last comment on ammo got me thinking a little bit. Could you elaborate more on ammo availability and its effect on overall demand
for firearms in the industry? And is this going to be -- I mean, is this a real structural problem going forward? Or is this something
that ammo will become available in the near future? What's going on in the industry as far as the ammo requirement?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I'm
not sure I can add much color to what I already gave. I would say that there certainly was a period when ranges were complaining
bitterly that they couldn't get the ammo to support all their guests coming to the range. And I haven't really heard those complaints
recently.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
still hear complaints about rimfire ammunition. And I think, now we're really stretching way beyond any expertise and into some
conjecture here. But I think that the ammo manufacturers have been somewhat reluctant to increase their capacity for rimfire ammunition
because it was historically their lowest margin product. And so they've all been a little bit reluctant.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">But
ammo is, ultimately, a bit of a commodity, and most commodity markets respond to demand. And so while I have absolutely no idea
what the firearms manufacturers are -- I mean the ammo manufacturers are planning, I wouldn't be shocked if that some day a new
rimfire line comes online. I mean, it would be against human nature if they manage to resist forever.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">David Bronstein <I> -
Kkb Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
The other question I have relates to market share. I've listened and obviously new product introductions are extremely imported
in terms of product mix. Another thing is accessories are very important in product mix.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">In
terms of accessories, you mentioned that people stocked up on accessories. Do you have any feel for when -- are you starting to
see their stock declining a little bit and increasing or is it still soft? And do you have an idea of what the cycle might be in
terms of accessory recovery?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We
don't have the experience actually to answer that question. We, frankly didn't even separate our accessory sales from the firearm
sales. They're all lumped together, and because it was a small, small part of our business.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
then, during the huge run-up last summer, we actually just thought we were smart, efficient operators doing a good job. And it
wasn't until the decline in the accessory sales and we started digging in deeper that we realized that we had to pay more attention
to their impact.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">It
historically has been a small part of our business. It surprised us very pleasantly last year at how strong it was. It's been frustrating
at how weak it is this year, which is, frankly, back more to normal levels, historical levels for us. And based on that one data
point, I cannot possibly tell you what it's going to do in the future. I don't know.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">David Bronstein <I> -
Kkb Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
Got it. Got it. So basically [you've] only got one data point, so you don't really have a trend or a feel. That's okay.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
certainly will be thrilled and pleased if it happens again, but, who knows?</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">David Bronstein <I> -
Kkb Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Now,
in terms of your competitiveness against your competitors, would you say that you are stable in terms of market share or declining
or increasing market share?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Well,
as I said in Q1, it appeared that we gained market share. Our spring promotions were very well received. And in Q2 when it was
deal of the minute and wait until tomorrow it's an even better deal and the inventory you bought yesterday has now been diminished
in value, we certainly lost the market share there. And not just by the big numbers, but by retailers telling us that we've got
a little less shelf space because they got this load of XYZ product at such a deep deal that now they've got to convert it to cash
because tomorrow it'll be worth less.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so those are the two data points I have. I don't know what's going to happen tomorrow.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">David Bronstein <I> -
Kkb Capital - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Great.
Great. Okay. Well, I appreciate it. Thank you.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Andrea
James from Dougherty and Company.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Andrea James <I> - Dougherty
&amp; Co. - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thanks
for taking my follow-up. Mike, you're obviously handling the questions just great this morning. But I'm just wondering if you do,
in fact, have Tom with you on the call today.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
have all kinds of support staff, including Tom, Chris Killoy, Kevin Reid.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Tom Dineen <I> - Sturm,
Ruger &amp; Co., Inc. - VP, Treasurer, CFO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Good
morning.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Andrea James <I> - Dougherty
&amp; Co. - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
Good morning. I didn't know if you were out or what was going on there, you had been so quiet.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
The other thing is, I was thinking through the share buyback authorization. Are you guys willing to go to a net debt position if
the multiple did contract to a point where it made sense to buy back shares? And then what's your kind of, I guess your comfortable
debt to EBITDA ratio, so?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">The
answer to the first question is yes. The answer to the second question on what ratio is comfortable with us, that's an evolving
question. We haven't formally decided, but I'm sure it will be much less than most other companies out there. We are really conservative.
Cash is king. And we really like a strong balance sheet, as you've noticed over the past few years.</FONT></P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Andrea James <I> - Dougherty
&amp; Co. - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thank
you for taking my follow-up.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Tom's
nodded his head yes.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Jay
Li from Trafelet Brokaw.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Jay Li <I> - Trafelet
Brokaw - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">If
I strip out the depreciation impact that you talked about and I look at your gross margin this year compared to last year for the
second quarter, it implies that for every dollar lost sales, you lost about $0.70 of gross profit.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Could
you help clarify how much of that really comes from the deleveraging and, on average, what your incremental margin should be for
product sales that you either pick up or lose?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">No,
I certainly don't have it analyzed to that many decimal places. But I think if you look at our broad overall margins in the 30s,
anybody with manufacturing experience will probably predict and estimate that the contribution margin is probably 10 points higher
anyway and maybe a little bit more.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
within that margin in the 30s, sometimes low 30s, sometimes high 30s, you ought to assume there's a variety of products ranging
from 25% margins up to 75% margins. But the weighted average is there in the mid-30s. And so the weighted average of the contribution
margin, and by that I mean just the incremental raw material cost and labor cost and energy cost and ignoring all the overhead
absorption, is probably a good 10, 12 points higher than that, and that's what you're observing.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
remember, I said that the, far and away, the highest margin product we have is accessory for firearms, typically magazines.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Jay Li <I> - Trafelet
Brokaw - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
what's the magnitude of the accessories business? I know you mentioned this year a much more normal environment. But in terms of
percentage of the overall revenue, sort of what's the accessory impact in a normal year?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Small.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Jay Li <I> - Trafelet
Brokaw - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
Thank you.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Brian
Rafn from Morgan Dempsey Capital Management.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Let
me ask, Mike, I wasn't able to attend your annual meeting up on the first floor. But from the standpoint of you talking in the
past about acquisitions being needle movers, would you entertain -- there's been so much incremental development in apparel relative
to the firearms industry - the 5.11 Tactical guys, the Blackhawk guys, and there's a whole ensemble of shooters' outfits and all
of that type of thing kind of running around the normal, the gun and the ammunition business.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Would
that be something that you guys would entertain in talking about margins and accessories or is that something that's a little beyond
your scope?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I'd
have to say that's way beyond our skill set. I mean, you've met me and Tom Dineen and Chris Killoy, and you've seen how we dress.
If our wives aren't there to check us in the morning, we're in real trouble.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
As you guys kind of go forward and you get, again, a little more normalized demand, you talked about building a $15 million safety
stock. Should I use average price to wholesaler or should I use your cost of goods sold to back into the units?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Cost
of goods sold. And if you'll note in the current MDNA, I think we talk about, perhaps, an incremental 10 from where we are today.
That'd sort of be the upper limit of my comfort level.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
Okay. As you go forward, Mike, and you now have three plants in, Newport, Prescott, and Mayodan, do you structure production or
development focus at those different plants, up in Newport (technical difficulty) being just, are you going to segment by types
or are there specific specialties? Obviously, some plants have the foundry, Mayodan does not. How do you structure kind of your
production footprint going out over the next few years?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I'm
sorry, Brian, I missed about half the question because you cut out there. But what I think you're asking is, is each factory going
to specialize in specific product lines. And the answer is in two parts.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">At
the moment, revolvers are, perhaps, particularly double-action revolvers, are, perhaps, the most complicated kind of product we
make. And that is currently in Newport, New Hampshire. And there's a lot really skilled, longtime employees doing those. And there's
no compelling reason to move it out because that's not a rapidly growing market anyway. So there's plenty of floor space and equipment
availability and people availability in Newport. So there's no economic reason to move it out of Newport.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">But
with regard to a variety of long guns and handguns, we are already doing it at all three locations. So it'll just be wherever the
skill sets or the engineers are who develop new products. And sometimes that has to do with what the engineers really want to do
and have some special expertise and sometimes it has to do with that's the next project on our long-term project planning list,
and this is the team that just came off a project and so we can assign them.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
</TABLE>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
it's a little bit of luck on who gets what project and also a little bit of responding to their unique skills. It's a mixture of
both.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
with the exception of revolvers, particularly double-action revolvers, we're pretty much going to build all kinds of products at
every plant.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
All right. When you look at new product development, Mike, do you think, as you go forward into 2014 and 2015, you will have --
you always talk about guys vetting ideas and designs and prototypes -- are you going to have more capacity to field more prototype
besides going forward?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
think of it in terms of product development teams. And so we have a long list of products we want to get to. And we're always a
little bit juggling that prior list and we're also looking to see what teams are becoming available and we try to mix up the teams.
The perfect world is two teams become available at the same time, and I kind of shift the guys around so they're working with a
slightly new group of guys and learning new things, because engineers feed off each other. Single-engineer [gentrify], engineer
phrase I like to use is they come in units of five and then they feed off each other, they get excited, they compete with each
other, and good things come out of that kind of mix.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so we sort of look to see who's becoming available, have they got the skill sets and the aptitude for it and what's next on the
project list, and that's how we assign it.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
are we going to have more capacity? I don't know. We have very good retention of our engineers and they're just getting better
every year. And we have an enormous commitment to training our engineers and cross training them and sharing information learned
at one project with guys at other plants on other projects, and we're getting a little bit better at that every year.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so that means that guys who were juniors on a team two years ago can be a leader on a new team and we can bring in some more underneath.
And we also have a huge engineering intern program that we -- even during a downturn like this, we keep it going strong.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So,
I mean, we're planning for the long game here, not the short game. I don't really care that much about next quarter. I care about
the products we can bring out over the next five years.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
intuitively, my feeling is that we're going to have a little more capacity just from our own people. And then, we are getting resumes
from competitors that are, those people working in those other companies, they're getting nervous and so they're starting to toss
resumes towards Ruger, and we're digging through them. I wouldn't be surprised if we added some more.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Again,
we're in this for the long haul. So I'm not shy about hiring another half dozen engineers during a downturn.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
All right. Can you comment, Mike, what is the size of your engineering pool? Is it 50, 60 guys, 80 guys, 100? Where would you be?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">The
order of magnitude is 100.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
All right. And then just kind of finally, what are you guys kind of running labor shifts at the three different plants right now
as you kind of move into the third quarter?</FONT></P>
<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
believe in most plants it hasn't changed a lot. We tend to run machines three shifts and we tend to run assembly on a single shift.
And that ratio really hasn't changed much.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">What
we're doing is, instead of stretching to reach production rates with overtime, we've said, well, I don't need 500 a day of product
X, 350 or 400 would be plenty. And so we're cutting out the overtime that was producing those elevated numbers. So --</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Brian Rafn <I> - Morgan
Dempsey Capital Management - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">All
right. Sounds good. Okay. Thanks, Mike. Appreciate all the comments.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Scott
Hamann from KeyBanc Capital Markets.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Mike,
in terms of Mayodan, where are you now with the ramp of that facility versus where you were last quarter, beginning of the year?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Oh,
versus where we were about 90 days ago, we're moving in the right direction. We've got one product line, which is the Ruger American
Rimfire Rifle, running very well. And we believe, measured on an incremental basis, that that product line is profitable now in
that facility.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We
also have a new hammer forging barrel operation up and running there. We have what we hope will someday be a very significant new
product line under development there. And then we have, yet the next one after that has been started as well.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
I would say more than half our activity there now is dedicated to new products which we're not shipping in that facility. We also
have ShopRuger there, and that's up and running. We moved that out from Arizona to free up space for more production in Arizona
for new product lines. So I'm pretty pleased. It's coming along well.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
Thanks. And then in terms of the accessories business, what's the margin differential between that and the firearms piece?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Huge.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Like
double?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Yes.</FONT></P>
<P>&nbsp;
<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
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<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
it depends what channel we sell it to. Look, for example, early last year, I would say through Q2 of last year, we sold most of
our accessory magazines to the direct-to-consumer online channel, and we sold them at full MSRP. Then, in the third quarter last
year, as the direct-to-consumer channel cooled off, the wholesalers who'd been screaming bloody murder to get those accessories,
we were finally able to fulfill them, but that's at a substantially lower margin because, again, they have to two-step it to the
retailer and there has to be enough margin for that guy to sell it at or below MSRP.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
the unit volumes didn't change dramatically from second to third quarter last year, but the margins changed dramatically on those
magazines. So Q2 last year again was the high-water mark. It was the highest unit volumes we've ever seen and way beyond our dreams
of what we could do on accessories and it was primarily sold to the highest margin channel at the time.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
and now we're kind of back to normal. We sell a few online, we sell a few more through wholesale through two-step. But in any case
it's -- in neither case is it a terribly big number.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
And then, Tom, on the tax rate, being a little bit lower this quarter, can you kind of speak to the reason for that and what we
should expect going forward?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Tom Dineen <I> - Sturm,
Ruger &amp; Co., Inc. - VP, Treasurer, CFO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Yes.
The cause of the change in the tax rate this quarter was we trued up the 2013 domestic production activities deduction. We had
under recognized that in our 2013 financials. As we drafted the 2013 return, realized that that deduction should be higher, and
we recorded it and recognized it in this quarter. Otherwise, nothing else has changed.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">So
the next couple quarters should go back to what the first-quarter rate looked like?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Tom Dineen <I> - Sturm,
Ruger &amp; Co., Inc. - VP, Treasurer, CFO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Yes.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Okay.
And then, Mike, maybe just kind of speak to, I mean, how you think about buybacks and that historic multiple. Can you kind of give
us a sense as to what that multiple looks like?</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">I
can't add any color to the analysis you guys can do yourselves. And I'm not disclosing what we think is a reasonable price. I think
I've given enough color to that.</FONT></P>

<P>&nbsp;
<P>&nbsp;
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    <TD STYLE="width: 100%; padding-top: 2pt; padding-bottom: 4pt; font:  bold 12pt Times New Roman, Times, Serif; text-align: left; color: #003399"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; color: white">JULY 30, 2014 / 01:00PM  GMT, RGR - Q2 2014 Sturm Ruger &amp; Co Inc Earnings Call</FONT></TD></TR>
</TABLE>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Look,
we're going to -- our plan is to file a 10b5-1, stick it out there with a tranche at a, what I believe to be a below-market multiple,
another tranche at a bit more below-market multiple, and another tranche at a, are you kidding me kind of multiple.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
opportunistically, look, I know this will come as a shock to you guys, but my feeling is that the stock market overreacts all the
time. It overreacts high. It overreacts low. I went to school and learned about efficient markets, and I've been stunned at the
amount of emotional markets rather than efficient markets I have observed.</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">And
so if the stock price gets a substantially below what I feel is reasonable for our long-term outlook for earnings, then we're going
to opportunistically buy stock. But if it's anywhere within a reasonable multiple, I'm not going to compete with our shareholders.
Let them do it. I'd rather save up the money and give them a good dividend down the road.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Scott Hamann <I> - KeyBanc
Capital Markets - Analyst </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Fair
enough. Thanks, Mike.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Ladies
and gentlemen, that concludes our question and answer session. I will now turn the conference back to Michael Fifer.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Michael Fifer <I> - Sturm,
Ruger &amp; Co., Inc. - CEO </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Thank
you very much and look forward to talking to you in about 90 days.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 8pt Times New Roman, Times, Serif; margin: 4pt 0; border-top: #003399 0.25pt solid">Operator<I> </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Ladies
and gentlemen, that concludes today's conference. Thank you for your participation. You may now disconnect and have a great day.</FONT></P>


<P STYLE="font:  8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

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