The Finish Line Issues Sales and Earnings Warning

The Finish Line, Inc. has revised sales and earnings guidance for its first quarter ending May 27, 2006 and the year ended March 3, 2007. FINL now expects to report consolidated net sales for Q1 in the range of $285 million to $290 million, compared to $291.3 million reported for the year-ago period.

Comparable store sales are now expected to decline in the range of 7% to 9%, compared to previous guidance for Q1 of $312 million in consolidated net sales and a comparable store decrease in the 1% to 3% range.

FINL is revising Q1 earnings guidance due to the decrease in sales, as well as negative leverage on occupancy costs and selling, general and administrative expenses. The Company's new guidance for Q1 diluted earnings per share is a range of 8 cents to 10 cents compared to previous guidance of 18 cents to 20 cents per diluted share.

Alan H. Cohen, Chairman and CEO stated, “For the quarter we have experienced significant weakness in women's performance running and our kids' footwear departments with both down double digits on a comparable store basis. Comparable sales decreased 8% in March followed by a 6% decrease in April. May comparable sales are expected to decline 9% to 11%. Softgood comparable sales for the quarter are expected to decline low-single-digits.

“We currently anticipate that we will report inventory that is up 4 – 7% per square foot for the Finish Line stores at the end of Q1 compared to Q1LY. We have reduced our planned opening of Finish Line stores from 50 to 45 for the current fiscal year while our plans for Man Alive and Paiva store openings have not changed.”

Given the slowing footwear sales trend, the Company believes it is prudent to reduce its guidance for the remainder of the year. The following table sets forth the company's revised sales and earnings guidance for Fiscal 07:

                    Quarter    Quarter    Quarter    Quarter      Year
                     Ended      Ended      Ended      Ended       Ended
                   05/27/06   08/26/06   11/25/06    03/03/07    03/03/07
  Consolidated
   Net Sales
  (in millions)   $285-$290  $352-$362  $289-$298   $444-$456  $1,370-$1,406

  Comparable
   Sales           Negative   Negative   Negative    Negative    Negative
                      7-9%       3-6%       3-6%        3-6%        4-6%

  Diluted Earnings
   (loss) per
   Share          $.08-$.10  $.25-$.28 ($.04)-($.07) $.58-$.61   $.84-$.95