Shoe Pavilion,Inc. announced a net loss of $1.2 million or
($0.18) per share, for the third quarter ended September 27, 2003 compared to a net loss of $104,000 or ($0.02) per share, for the third quarter of 2002. Net sales increased 13.9% to $21.6 million for the quarter from net sales of $19.0 million for the same period in 2002.


The net loss for the nine months ended September 27, 2003 was $2.8 million or ($0.40) per share, compared to net income of $501,000 or $0.07 per share, for the same period in 2002. Net sales for the nine months ended September 27, 2003 were $61.3 million, a 2.8% decrease from net sales of $63.1 million for the nine months ended September 28, 2002.

Comparable store net sales increased 4.7% for the third quarter
ended September 27, 2003 from the same period last year and decreased
4.1% for the nine months ended September 27, 2003 from the same period
last year.

During the quarter ended September 27, 2003 the Company closed
three stores. Since the end of the quarter the Company opened two new
stores bringing the total number of stores the Company operates to 86.

                          Shoe Pavilion, Inc.
            Condensed Consolidated Statements of Operations
                              (Unaudited)

(In thousands, except
 per share amounts and
 number of stores)
                       Thirteen weeks ended    Thirty-nine weeks ended
                      -----------------------  -----------------------
                        Sept. 27,   Sept. 28,    Sept. 27,   Sept. 28,
                            2003        2002         2003        2002
                      ----------- -----------  ----------- -----------

Net sales             $   21,581  $   18,952   $   61,326  $   63,107
Cost of sales and
 related occupancy
 expenses                 15,444      12,901       44,820      42,542
                      ----------- -----------  ----------- -----------
    Gross profit           6,137       6,051       16,506      20,565
Selling, general and
 administrative
 expenses                  8,096       6,184       20,910      19,724
                      ----------- -----------  ----------- -----------
    Income (loss)
     from operations      (1,959)       (133)      (4,404)        841
Interest expense             (47)        (33)        (183)        (95)
Other income (expense)        --          (3)          --          67
                      ----------- -----------  ----------- -----------
Income (loss) before
 taxes                    (2,006)       (169)      (4,587)        813
Income tax provision
 (benefit)                  (803)        (65)      (1,835)        312
                      ----------- -----------  ----------- -----------
Net income (loss)     $   (1,203) $     (104)  $   (2,752) $      501
                      =========== ===========  =========== ===========

Earnings (loss) per
 share:
Basic                 $    (0.18) $    (0.02)  $    (0.40) $     0.07
Diluted               $    (0.18) $    (0.02)  $    (0.40) $     0.07