Footstar Athletic Comp Store Sales Dip 0.4% in Q4 on JFF Weakness

Footstar, Inc. reported sales for it's fiscal 2003 fourth quarter and full year, which refected a 53-week sales period versus 52 weeks in 2002. The 14-week Q4 period
saw comparable store sales decline 6.0% over the same 14-week period in 2002. Comparable store sales for the Athletic segment decreased 0.4% and at Meldisco decreased 10.4%.

Total sales for the fiscal 2003 fourth quarter were $508.3 million, a decrease of 10.2% from $566.3 million in the fiscal year 2002 fourth quarter. Total sales for the Athletic segment increased 4.7% to $235.6 million from $225.0 million, and total sales for the Meldisco segment declined 20.1% to $272.7 million from $341.3 million.

On an adjusted basis over the same thirteen week period that comprised fiscal year 2002, Footstar total sales were $481.7 million, down 14.9%, Athletic segment sales were $221.2 million, down 1.7%, and Meldisco segment sales were $260.5 million, or down 23.7%.

The overall sales decline reflects fewer Kmart and J. Baker stores in operation at Meldisco than in the prior year period, as well as the decline in comparable store sales which resulted, in part, from reduced traffic at Kmart.

For the fifty-three week period ended January 3, 2004, the
Company's comparable store sales declined 3.8% versus the same 53-week period in 2002. Comparable store sales for the Athletic segment rose 0.5% and comparable store sales at Meldisco were down by 7.7%.

In the Athletic segment, fiscal year 2003 Footaction comparable store sales were up mid single digits, and Just For Feet comparable store sales were down high single digits.

The Company's total sales for the fifty-three week period ended January 3, 2004 were $1,988.8 million, a decrease of 13.5% from $2,299.9 million in fiscal year 2002, again, reflecting fewer stores in operation at Meldisco as well as negative comparable store sales at
Meldisco.

Total sales in the Company's Athletic segment increased 2.0% to $973.2 million from $953.9 million and total sales for Meldisco declined 24.5% to $1,015.6 million from $1,346.0 million.

On an adjusted basis over the same fifty-two week period that comprised fiscal year 2002, Footstar total sales were $1,962.2 million, down 14.7%, Athletic segment sales were $958.8 million, up 0.5% and Meldisco segment sales were $1,003.4 million, down 25.5%.

                            Footstar, Inc.
                        Comparable Store Sales
                        Change from Prior Year

                           Fourteen Weeks          Fifty-three Weeks
                               Ended                      Ended
                         January 3, 2004(a)        January 3, 2004(b)
----------------------------------------------------------------------
Athletic segment              (0.4%)                       0.5%
----------------------------------------------------------------------
Meldisco                     (10.4%)                      (7.7%)
----------------------------------------------------------------------
Footstar, Inc.                (6.0%)                      (3.8%)
----------------------------------------------------------------------

(a) Comparable store sales for the fourth quarter of fiscal 2003
    compares sales for the 14 week period against sales for the same
    14 weeks in the prior year.

(b) Comparable store sales for fiscal 2003 compares sales for the 53
    week period against sales for the same 53 weeks in the prior year.