Big 5 Sporting Goods Corporation reported for the 2004 fiscal fourth quarter, net sales increased by 13.4%, to $217.6 million from $191.8 million in the corresponding 13-week fourth quarter of 2003. On a comparative 13-week basis for both fiscal 2004 and 2003, net sales increased 6.0% and same store sales increased 2.6%.

The 2.6% same store sales increase represented the Company’s thirty-sixth consecutive quarterly increase in same store sales over comparable prior periods and includes a 0.5% negative impact from the effect of a sales return allowance that was implemented in the fiscal third quarter of 2004. Net income for the 2004 fourth quarter increased to $11.6 million, or $0.51 per diluted share, compared with net income, as preliminarily
restated, of $8.6 million, or $0.37 per diluted share, in the same period last year. Net income for the 2004 fourth fiscal quarter includes a charge of $0.8 million, net of taxes, or $0.03 per diluted share, associated with the
redemption of $33.1 million principal amount of the Company’s 10.875% senior
notes, and net income for the 2003 fourth fiscal quarter includes a charge of
$1.2 million, net of taxes, or $0.06 per diluted share, associated with the
redemption of $35.0 million principal amount of these notes.

For fiscal 2004, which included 53 weeks, net sales increased by
$69.2 million, or 9.8%, to $778.9 million from $709.7 million for the
corresponding 52-week fiscal year 2003. On a comparative 52-week basis for
both fiscal 2004 and 2003, net sales increased 7.8% and same store sales
increased 3.5%. The 3.5% same store sales increase includes a 0.4% negative
impact from the effect of a sales return allowance that was implemented in the
fiscal third quarter of 2004. Net income for fiscal 2004 increased to
$34.2 million, or $1.50 per diluted share, compared with net income for fiscal
2003, as preliminarily restated, of $24.9 million, or $1.10 per diluted share.
Net income for fiscal 2004 includes a charge of $1.3 million, net of taxes, or
$0.06 per diluted share, associated with the redemption of $48.1 million
principal amount of the Company’s 10.875% senior notes, and net income for
fiscal 2003 includes a charge of $2.1 million, net of taxes, or $0.09 per
diluted share, associated with the redemption of $55.0 million principal
amount of these notes.

Steven G. Miller, Big 5’s Chairman, President and Chief Executive Officer,
said, “We are pleased to report the continuation of our consistently strong
performance for the fourth quarter and full year of 2004. We are particularly
pleased to have achieved our fourth quarter results despite unseasonably warm
and dry weather in the majority of our markets during the weeks preceding
Christmas, which negatively impacted our winter categories. Our apparel
category was down in the low single digits for the quarter, but that softness
was more than offset by our performance in the hardgoods category, which was
up in the low single digits, and our performance in the footwear category,
which was up in the mid-to-high single digit range. Our ability to
consistently generate significant cash flow from operations, combined with our
significant borrowing capacity under our bank facility, enabled us during the
fourth quarter to pay off the remaining $33.1 million of our 10.875% senior
notes, which had an original principal amount of $131.0 million in 1997. We
believe we are well positioned to continue our strong performance in 2005.”

Big 5’s results are preliminary because, during the course of the year-end
closing process, the Company identified the need to correct prior period
reconciliations of certain accounts within its accounts payable. Management
has made an internal evaluation of the resulting impact and has included
preliminary financial results reflecting these estimates. In addition, Big 5
and its Audit Committee are, in consultation with its independent registered
public accounting firm, KPMG LLP, reviewing prior financial statements filed
with the Securities and Exchange Commission to determine if any other
adjustments or corrections are necessary. Big 5 has not identified any other
necessary adjustments at this time.

Accounting Restatements

In the course of its annual year-end closing process, Big 5 identified an
error in an account within accounts payable as reported in its financial
statements. This account reflects as credits items received into inventory at
Big 5’s distribution center. Credits in this accounts payable account are
cleared as the Company’s receiving documentation is matched against vendor
invoices or, in the case of inventory paid for by prior draws on letters of
credit, commercial invoices. The process of clearing credits related to
commercial invoices involves matching those credits in the accounts payable
account against corresponding items, in a separate accounts payable
contra-liability account, which were previously entered at the time draws were
made against letters of credit.

The error occurred when certain credits in the accounts payable account
related to commercial invoices were not matched on a timely basis with the
corresponding letter of credit items in the contra-liability account as
required by Big 5’s established accounting procedures. Certain of the
Company’s accounting personnel failed to understand that, even though vendors
had already been paid by prior draws on letters of credit and inventories had
been properly accounted for, timely reconciliation of all related commercial
invoices still was necessary for proper internal bookkeeping. This failure
created unmatched credits in accounts payable for each of the Company’s 2000,
2001, 2002 and 2003 fiscal years, which were erroneously assumed to be
over-accruals. These assumed over-accruals were reversed at year end and
included in net income. This resulted in an understatement of accounts
payable and an overstatement of net income, as well as a corresponding
overstatement of stockholders equity, for each of these periods.

As a result, Big 5’s management and its Audit Committee have recommended,
and its Board of Directors has approved, the review and restatement of its
financial statements for fiscal 2001, 2002 and 2003. The accompanying
preliminary financial statements include adjustments that resulted from
changes to address the matters described above. The expected impact on net
income is $1.2 million for 2001, $2.1 million for 2002 and $1.4 million for
2003. The adjustments reflected in the attached preliminary financial
statements are being reviewed by the Company and its independent registered
public accounting firm and could change. Accordingly, investors are cautioned
not to rely on the Company’s historical financial statements for such periods.

These non-cash adjustments of net income do not have any impact on:

     * the Company's previously reported net sales or same store sales;
     * the Company's previously reported assets, including cash;
     * the Company's previously reported cash flows from operating activities;
       or
     * the Company's compliance with financial covenants contained in its bank
       credit agreement.

Additionally, the Company anticipates a refund or credit of approximately
$3.2 million attributable to an over-payment of income taxes for the affected
periods.

“While our prior fiscal year 2004 full year and fourth quarter guidance
was impacted by $0.06 per share, these accounting adjustments do not affect
the Company’s underlying business or business prospects,” explained Charles
Kirk, Big 5’s Senior Vice President and Chief Financial Officer. “We have
corrected our internal controls associated with these accounting adjustments.
Further, as all public companies are doing at this time, we are in the process
of completing a full review of our internal controls as dictated by
Sarbanes-Oxley requirements. Management brought this situation to the
attention of the Audit Committee of the Company’s Board of Directors as soon
as it became aware of it and its potential effect on the Company’s financial
statements, and is working with the Audit Committee and KPMG LLP, to review
those effects and to take appropriate corrective action. We anticipate the
review of this matter will be concluded promptly and permit a timely filing of
our Annual Report on Form 10-K for fiscal 2004.”

Declaration of Quarterly Cash Dividend

Big 5 also announced that its Board of Directors has voted to declare a
cash dividend, at an annual rate of $0.28 per share of outstanding common
stock. The next quarterly dividend, of $0.07 per share, will be paid on March
15, 2005, to stockholders of record as of March 1, 2005.

Store Openings

During the fiscal 2004 fourth quarter, Big 5 opened 11 new stores,
including three each in Arizona, California and Colorado, and one each in New
Mexico and Utah. These openings brought the Company’s year-end store count to
309 versus 293 at the end of fiscal 2003. The Company anticipates opening
between 16 and 20 stores in fiscal 2005.

EPS Guidance

Big 5 expects to realize same store sales growth in the low single-digit
range for the first fiscal quarter of 2005, resulting in earnings per diluted
share in the range of $0.32 to $0.35. For the 2005 fiscal year, the Company
currently expects to realize same store sales growth in the low single-digit
range, resulting in earnings per diluted share of $1.70 to $1.80. This
full-year guidance excludes $0.09 per diluted share associated with expenses
related to the Company’s transition to its new distribution center, most of
which are expected to be incurred in the third and fourth quarters of fiscal
2005. The Company now anticipates total capital expenditures for its new
distribution center to be approximately $22.5 million, of which $8.2 million
has been expended through fiscal 2004.

                         BIG 5 SPORTING GOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Preliminary and Unaudited)
(in thousands, except earnings per share data)

As As
Previously Preliminarily
Reported Restated
14 Weeks Ended 13 Weeks Ended 13 Weeks Ended
Jan. 2, Dec. 28, Dec. 28,
2005 2003 2003

Net sales $217,595 $191,823 $191,823
Cost of goods sold, buying
and occupancy 139,767 121,554 123,849
Gross profit 77,828 70,269 67,974

Selling and administrative 52,839 46,807 46,807
Depreciation and amortization 3,306 2,784 2,784

Operating income 21,683 20,678 18,383
Premium and unamortized
financing fees related
to redemption of debt 1,275 1,901 1,901
Interest expense, net 1,639 2,661 2,661

Income before income taxes 18,769 16,116 13,821
Income tax 7,164 6,189 5,269

Net income $11,605 $9,927 $8,552

Earnings per share:
Basic $0.51 $0.44 $0.38

Diluted $0.51 $0.43 $0.37