OLD TOWN – Phoenix Footwear Group Inc. of Old Town has reported that net income for the second quarter increased by $1,570,045 over the same period last year, while sales of its Trotters and SoftWalk brands grew by 16 percent.

For the second quarter ending June 30, 2002, net income was $342,770 compared to a loss of $1,227,275 for the previous year, or 17 cents versus a loss of 78 cents per fully diluted share.

For the six months ending June 30, 2002, net income was $947,872 compared to a loss of $1,002,921 for the six months ending June 30, 2001, or 49 cents versus a loss of 64 cents per fully diluted share.

Net sales of the company’s Trotters and SoftWalk brands for the second quarter were $8.4 million, an increase of 16 percent compared to $7.2 million in sales during the second quarter of 2001. The net sales comparison excludes $1.2 million in net sales during the 2001 period that were attributable to the Daniel Green and L.B. Evans slipper brands being divested in 2001.

Net sales for the 2002 second-quarter and six-month periods did not include income related to royalties the company expects to receive from its slipper brand divestitures in 2001. This royalty income will be recognized during the fourth quarter of 2002 if sales of these divested brands exceed agreed upon minimums.

Phoenix Footwear Group Inc. designs, develops and markets casual and dress footwear for women and men. Formerly known as Daniel Green Co., Phoenix Footwear Group is now traded on the American Stock Exchange under the symbol PXG.