HAT WORLD COMES OUT ON TOP

Hat World had a strong quarter, with sales up 21% to $98 million. Same store sales rose 6%, matching a 6% gain in the same period last year, driven in part by strong demand for Boston Red Sox products associated with the team's 2005 World Series victory.

The Major League Baseball and NFL categories continued to perform well in the fourth quarter of fiscal 2006. Hat World continues to roll out embroidery machines, which seems to be an attractive add-on business in their larger stores. Because of its versatility, illustrated by successful operations not only in malls, but also in airports, outlets, street locations, tourist destinations and kiosks, they remain confident about Hat World's significant growth potential.

Hat World plans on opening 85 new Lids locations in fiscal 2007 and they hope to grow the chain to at least 900 stores in North America.