NIKE, Inc. reported that revenues for the fiscal first quarter ended August 31, 2003 increased 8.0% to $3.0 billion, versus $2.8 billion for the same period last year. First quarter net income totaled $261.2 million, or $0.98 per diluted share, compared to a loss of $48.9 million, or $0.18 loss per diluted share, and $217.2 million, or $0.81 per diluted share before accounting change in the prior year.

Philip H. Knight, Chairman and CEO, said, “Nike's first quarter results reflect another great quarter in which global brand strength and superior product, combined with a favorable currency exchange environment, drove worldwide business results to record levels. This quarter, Nike's sales topped $3 billion, the highest single quarter revenue in our history. Equally important, we again demonstrated our commitment to managing our business for long-term profitability, achieving the highest gross margin percentage in our recent history and delivering 21 percent growth in earnings per share before last year's accounting change. As Nike's global portfolio of businesses continues to expand, we will remain focused on managing both our brand and our business for long-term, profitable growth.”

Futures Orders

The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from September 2003 through January 2004, totaling $3.7 billion, 10.5 percent higher than such orders reported for the same period last year. Approximately three points of this growth were due to changes in currency exchange rates. In addition, approximately four to five points of this growth can be attributed to an earlier start of the spring season for footwear sales in Europe.

By region, futures orders for the USA were down three percent; Europe increased 28 percent; Asia Pacific grew 19 percent; and the Americas increased nine percent. In Europe, seven points of the increase were due to currency exchange rates. Currency exchange contributed to Asia Pacific and the America's growth by two points and three points, respectively.

“Once again, momentum in Nike's international markets continued to fuel the business as international futures increased 23 percent,” Knight added. “While Nike's USA futures declined three percent, we are confident that our largest business, USA footwear, is on the right track based on positive footwear futures growth. In addition, our profitability has grown and consumers are responding to our brand and the full range of Nike's performance and active life product offerings.”

Regional Highlights

USA

During the first quarter, U.S. revenues declined two percent to $1.25 billion versus $1.28 billion for the first quarter of 2003. U.S. athletic footwear revenues declined five percent to $822.4 million. Apparel revenues increased five percent to $346.5 million. Equipment revenues fell four percent to $85.0 million.

Europe

Revenues for the European region (which includes the Middle East and Africa) grew 17 percent to $1.01 billion, up from $869.3 million for the same period last year. Nineteen points of this growth were the result of changes in currency exchange rates. Footwear revenues increased 20 percent to $590.0 million, apparel revenues increased 10 percent to $341.9 million and equipment revenues increased 24 percent to $81.6 million.

Asia Pacific

Revenues in the Asia Pacific region grew 13 percent to $348.3 million compared to $307.8 million a year ago. Four points of this growth were the result of changes in currency exchange rates. Footwear revenues were up 12 percent to $202.8 million; apparel revenues increased 15 percent to $113.3 million and equipment grew 13 percent to $32.2 million.

Americas

Revenues in the Americas region increased eight percent to $153.7 million, an improvement from $142.3 million in the first quarter of 2003. This growth rate reflected a two percent increase due to changes in currency exchange rates. Footwear revenues were up 11 percent to $103.1 million, apparel revenues increased two percent to $39.4 million and equipment improved five percent to $11.2 million.

Other Revenues

Other revenues, which include Nike Golf, Bauer Nike Hockey Inc., Cole Haan(R), and Hurley International LLC, grew 32 percent to $255.5 million from $194.2 million last year.

Income Statement Review

Gross margins were 43.0 percent compared to 41.4 percent last year. Selling and administrative expenses were 28.7 percent of first quarter revenues, compared to 28.8 percent last year. The effective tax rate for the first quarter was 34.8 percent.

Balance Sheet Review

At quarter end, global inventories stood at $1.5 billion, an increase of four percent from August 31, 2002. Cash and short-term investments were $997.8 million at the end of the quarter, compared to $430.0 million last year. This cash and investments balance does not reflect the acquisition of Converse, Inc., which was completed on September 4, 2003 for approximately $305 million.

Share Repurchase

During the quarter, the Company purchased a total of 1,706,500 shares for approximately $89.5 million in conjunction with the Company's second four-year, $1 billion share repurchase program that was approved by the Board of Directors in June 2000.

                                  NIKE, Inc.
                      CONSOLIDATED FINANCIAL STATEMENTS
                    FOR THE QUARTER ENDED AUGUST 31, 2003
                     (In millions, except per share data)

     INCOME                                          QUARTER ENDING
     STATEMENT *                           8/31/2003    8/31/2002       % Chg

    Revenues                               $3,024.9      $2,796.3         8%
    Cost of Sales                           1,723.4       1,639.2         5%
    Gross Margin                            1,301.5       1,157.1        12%
                                               43.0%         41.4%

    SG&A                                      869.6         804.8         8%
                                               28.7%         28.8%

    Interest Expense, net                       7.5           7.2         4%
    Other                                      23.8          11.0       116%

    Income before income taxes and
     cumulative effect of accounting change   400.6         334.1        20%
    Income Taxes                              139.4         116.9        19%
                                               34.8%         35.0%

    Income before cumulative effect of
     accounting change                        261.2         217.2        20%

    Cumulative effect of accounting change,
     net of income taxes                         --         266.1
    Net Income/(loss)                        $261.2        $(48.9)

    Diluted EPS - before accounting change    $0.98         $0.81        21%
    Cumulative effect of accounting change       --         (0.99)
                                              $0.98        $(0.18)
    Basic EPS - before accounting change      $0.99         $0.82        21%
    Cumulative effect of accounting change       --         (1.00)
                                              $0.99        $(0.18)