Finish Line Reports Third Quarter Results $.02 Better Than Consensus Estimate.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--Jan. 3, 2002

Alan H. Cohen, President and Chief Executive Officer of The Finish Line, Inc. (Nasdaq:FINL) announced results for the third quarter representing the thirteen weeks ended December 1, 2001.

THIRD QUARTER RESULTS:

Net sales increased 6% (six percent) to $142.3 million for the thirteen weeks ended December 1, 2001 (the "third quarter" or "Q3") compared to $134.5 million reported for the thirteen weeks last year ended November 25, 2000 ("Q3 LY"). Comparable store net sales increased 8% (eight percent) for Q3.

Net loss for the quarter decreased 27% (twenty seven percent) to $1.8 million compared to a net loss of $2.5 million for Q3 LY. Diluted loss per share was $.07, which is a decrease of 30% (thirty percent) compared to the $.10 per share loss reported for Q3 LY. Diluted weighted average shares outstanding were 24,549,000 for the thirteen weeks ended December 1, 2001, versus 24,679,000 shares outstanding for Q3 LY.

YEAR-TO-DATE RESULTS:

Net sales increased 6% (six percent) to $499.9 million for the thirty-nine weeks ended December 1, 2001 ("YTD") compared to $471.7 million for the thirty-nine weeks last year ended November 25, 2000 ("YTD LY"). Comparable store net sales increased approximately 3% (three percent) for YTD. Net income YTD increased 13% (thirteen percent) to $9.5 million compared to net income of $8.4 million for YTD LY. Diluted earnings per share were $.38, which is an increase of 12% (twelve percent) compared to $.34 per share reported for YTD LY. Diluted weighted average shares outstanding were 24,660,000 for the thirty-nine weeks ended December 1, 2001, versus 24,682,000 shares outstanding for YTD LY.

Merchandise inventories were $167.1 million at December 1, 2001 compared to $145.5 million at March 3, 2001. On a per square foot basis merchandise inventories at the end of Q3 decreased approximately 7% (negative seven percent) compared to one year ago.

The Company operated 454 stores at December 1, 2001, an increase of 3% (three percent) over the 441 stores operated one year ago. For the year, the Company has opened 27 new stores; remodeled 5 existing stores and closed 9 stores. Total retail square footage increased 2% (two percent) to 2,717,000 at December 1, 2001 versus 2,674,000 square feet at the end Q3 LY.

Mr. Cohen stated, "Our diluted loss per share of $.07 is slightly better than the guidance range of a loss of $.08- $.10 we announced in our December 6th sales release. Our footwear sales for the quarter performed above plan as all categories (Men's, Women's and Children's) showed strength with double-digit comparable store sales gains. During the quarter the apparel category continued to be negatively affected by the promotional retail environment and the unseasonably warm weather.'

`Our balance sheet remains strong with over $35 million in cash and marketable securities and no interest bearing debt. Our stockholders' equity is $233.2 million, which equates to $9.45 per diluted share."

CONFERENCE CALL:

The Company is hosting a live conference call at 8:30 am (ET) on Friday January 4th. Interested parties may participate in the call by calling 1-706-634-5566 (conference leader is Steve Schneider and conference ID No. is 2793829). Those interested in listening to the call on the web can do so at www.finishline.com/ourcompany.asp.

The Company will make available a replay of the live conference call by calling 1-706-645-9291 (Conference ID No. 2793829). This replay will be available commencing at approximately 9:45 ET on Friday, January 4th and will remain available through January 7th. In addition, the replay will be available on the web at www.finishline.com/ourcompany.asp.

The Company has experienced, and expects to continue to experience, significant variability in net sales and comparable store net sales from quarter to quarter. Therefore, the results of the periods presented herein are not necessarily indicative of the results to be expected for any other future period or year.

Certain statements contained in this press release regard matters that are not historical facts and are forward looking statements (as such term is defined in the rules promulgated pursuant to the Securities Act of 1933, as amended). Because such forward looking statements contain risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward looking statements. Factors that could cause actual results to differ materially include, but are not limited to: changing consumer preferences; the Company's inability to successfully market its footwear, apparel, accessories and other merchandise; price, product and other competition from other retailers (including internet and direct manufacturer sales); the unavailability of products; the Company's ability to successfully execute and benefit from its repositioning plan; the inability to locate and obtain favorable lease terms for the Company's stores; the loss of key employees, general economic conditions and adverse factors impacting the retail athletic industry; management of growth, and the other risks detailed in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to release publicly the results of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

The Finish Line is a specialty retailer of men's, women's and children's brand name athletic and lifestyle footwear, activewear and accessories. The Company currently operates 451 stores in 43 states.

                         The Finish Line, Inc.
             Consolidated Statements of Income (Unaudited)
            (In thousands, except per share and store data)

                      Thirteen     Thirteen    Thirty-nine Thirty-nine
                      Weeks Ended  Weeks Ended Weeks Ended Weeks Ended
                      December     November    December    November
                      1, 2001      25, 2000    1, 2001     25, 2000
                      ----------   ----------  ----------  ----------
Net Sales              $142,266     $134,503    $499,867    $471,702
Cost of Sales
 (including occupancy
 expenses)              107,297      101,378     365,589     344,687
                      ----------   ----------  ----------  ----------
Gross profit             34,969       33,125     134,278     127,015

Selling, general,
 and administrative
 expenses                38,748       37,404     122,038     114,457
Repositioning
 charge reversal           (549)           -      (1,209)          -
Interest income(net)        387          328       1,325         720
                      ----------   ----------  ----------  ----------
Income before
 income taxes            (2,843)      (3,951)     14,774      13,278
Income taxes             (1,023)      (1,462)      5,319       4,913
                      ----------   ----------  ----------  ----------
Net income              ($1,820)     ($2,489)     $9,455      $8,365
                      ==========   ==========  ==========  ==========
Diluted weighted
 average shares
 outstanding             24,549       24,679      24,660      24,682
                      ==========   ==========  ==========  ==========
Diluted net income
 per share               ($0.07)      ($0.10)      $0.38       $0.34
                      ==========   ==========  ==========  ==========
Number of stores open
 at end of period           454          441


                 Condensed Consolidated Balance Sheet

                                  December 1,          March 3,
ASSETS                                2001               2001
-----------------------------------------------------------------
                                  (Unaudited)

Cash and cash equivalents            $ 30,406           $ 45,422
Marketable securities                   5,500              6,513
Merchandise inventories               167,094            145,503
Other current assets                   21,323             10,709
Property and equipment, net            91,838             94,474
Other assets                            7,603              6,247
                             -----------------  -----------------
Total assets                         $323,764           $308,868
                             =================  =================

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities                  $ 82,241           $ 74,507
Deferred rent payments                  8,324              7,614
Stockholders' equity                  233,199            226,747
                               ---------------  -----------------
Total liabilities and
 stockholders' equity                $323,764           $308,868
                               ===============  =================