The Finish Line, Inc. reported that net sales increased 18% to $361.4 million for fourth quarter ended February 26, 2005 compared to $305.3 million for the year-ago period. Comparable store net sales increased 8% for Q4 on top of a 19% increase reported for Q4 LY

Net income for Q4 was $28.2 million, or 57 cents per diluted share, versus $21.1 million, or 43 cents per diluted share, on a restated basis for Q4 LY, an increase of 33% in diluted income per share.

Full Year Results
Net sales increased 18% to $1.167 billion for fiscal 2005 compared to $985.9 million for fiscal 2005. Comparable store net sales increased 9% for fiscal 2005 on top of a 20% increase for fiscal 2004.

Reported net income for fiscal 2005 was $61.3 million, or $1.24 per diluted share, versus $47.3 million, or 98 cents per diluted share, on a restated basis for fiscal 2004. Included in fiscal 2004 is the benefit from the gain on the tornado insurance settlement of $.01 per diluted share. Excluding the insurance settlement noted above, fiscal 2004 adjusted net income per diluted share would have been 97 cents. As a result, fiscal 2005 earnings per diluted share of $1.24 increased 28% versus comparable earnings of $.97 per diluted share for fiscal 2004. Diluted weighted average shares outstanding were 49,377,000 for fiscal 2005, versus 48,272,000 shares outstanding for fiscal 2004.

Mr. Cohen stated, “fiscal 2005 was a record year for Finish Line and we are pleased to announce a 33% increase in diluted earnings per share for the fourth quarter of fiscal 2005 and a 28% increase in reported diluted earnings per share for the full fiscal year. Our operating margin of 8.3% for fiscal 2005 exceeded our goal of 8.1% we had set at the beginning of the year. In addition, our acquisition of the Man Alive chain effective as of January 29, 2005 offers another growth vehicle for the future.”

Lease Accounting Issues:

Consistent with many other retailers, Finish Line historically has accounted for construction allowances received from landlords on its balance sheets as a reduction of property and equipment, and amortized the allowances over the lives of the related assets. After consultation with its independent auditors and its Audit Committee, the Company has determined that this method of accounting is not consistent with the views expressed in a letter dated February 7, 2005 from the chief accountant of the SEC to the American Institute of Certified Public Accountants. As a result, Finish Line reclassified construction allowances from property and equipment to deferred rent liabilities on its Balance Sheets for all periods presented. This had the effect of increasing capital expenditures, with an offsetting increase in depreciation and deferred rent on its Statement of Cash Flows. Accordingly, there was no effect on cash.

In addition, the company has determined that its calculation of straight line rents should be modified. The company had recognized straight line expense for leases beginning on the commencement date of the lease, which had the effect of excluding the store build-out periods from the calculation of the period over which it expensed rent. The company restated its results to reflect straight line expense over the lease term including any rent-free build-out periods.

All financial data affected by these changes has been adjusted or restated, as applicable. To reclassify the construction allowances and adjust straight-line rents, property and equipment on the fiscal 2005 Balance Sheet increased by approximately $36.2 million, and the liability for deferred rent increased by approximately $41.6 million. The restatement had no effect on earnings per diluted share for the fourth quarter and fiscal 2005 was affected by a charge to earnings of 1 cent per diluted share. The adjustment to earnings in each of the affected years is a non-cash item. The estimated cumulative effect on Retained Earnings as of the beginning of the year for fiscal 2003 will be a reduction of approximately $2.3 million. The net income effect for fiscal 2003, fiscal 2004, and fiscal 2005 was a charge of $0.4 million, a benefit of $0.1 million and a charge of $0.7 million, respectively.

Inventory and Store Information:
Merchandise inventories on a consolidated basis (including Man Alive) were $241.2 million at February 26, 2005. Finish Line store merchandise inventories were $237.5 million at fiscal year end compared to $192.6 million at February 28, 2004. On a per square foot basis Finish Line store merchandise inventories at fiscal year end increased approximately 11% compared to one year ago.

Finish Line operated 598 stores at February 26, 2005, an increase of 13% over the 531 stores operated one year ago. For the year, Finish Line opened 71 new stores, remodeled 27 existing stores and closed 4 stores with retail square footage increasing 11% to 3,414,000 at February 26, 2005 versus 3,081,000 at February 28, 2004. As of February 26, 2005, Man Alive operated 37 stores totaling 105,000 square feet.

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

                                      As Restated                 As Restated
                           Thirteen Weeks Ended        Fifty-two Weeks Ended
                        February 26,  February 28,  February 26,  February 28,
                           2005          2004          2005          2004
                        ------------  ------------  ------------  ------------
    Net Sales            $361,386      $305,262    $1,166,767      $985,891
    Cost of Sales
     (including
      occupancy
      expenses)           242,046       205,957       798,033       681,561
                        ------------  ------------  ------------  ------------
    Gross profit          119,340        99,305       368,734       304,330

    Selling, general,
     and administrative
     expenses              74,586        65,409       271,787       229,842
    Insurance settlement        -             -             -        (1,228)
    Interest income - net     363           178         1,076           651
                        ------------  ------------  ------------  ------------
    Income before
     income taxes          45,117        34,074        98,023        76,367
    Income taxes           16,920        12,948        36,760        29,020
                        ------------  ------------  ------------  ------------
    Net income            $28,197       $21,126       $61,263       $47,347
                        ============  ============  ============  ============
    Diluted weighted
     average shares
     outstanding (1)       49,601        49,031        49,377        48,272
                        ============  ============  ============  ============
    Diluted net income
     per share (1)          $0.57         $0.43         $1.24         $0.98
                        ============  ============  ============  ============

    Dividends declared
     per share             $0.025             -        $0.075             -
                        ============  ============  ============  ============