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Gadzooks Reports January Sales Results, Completion of Financing Facility

From: ASAP

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Gadzooks, Inc. (Nasdaq: GADZ) today announced that sales for the four weeks of fiscal January ended January 31, 2004 decreased 21.9 percent to $13.2 million from $16.9 million for January 2003. For the January period, the Company's seventh month as a female-only concept, comparable store sales decreased 19.2 percent compared to a 7.7 percent decrease for the prior January.

Sales for the 13 weeks of the fourth quarter ended January 31, 2004 decreased 27.6 percent to $70.1 million from $96.8 million for the fourth quarter of fiscal 2002. Comparable store sales declined 24.8 percent for the quarter, versus a 3.1 percent decrease for the last quarter of fiscal 2002.

For the 52 weeks of fiscal 2003, total sales decreased 20.6 percent to $258.5 million from $325.5 million for the comparable period of fiscal 2002. Comparable store sales have declined 19.3 percent for the 52 weeks of fiscal 2003, versus a 3.4 percent decrease for the 52 weeks of fiscal 2002.

The Company also announced that it closed a one-year agreement with its pre-petition lender, Wells Fargo Retail Finance, LLC to provide a $30 million post-petition, Debtor-in-Possession financing facility. As of February 4, 2004, the new facility provided $4.2 million of incremental financing.

Dallas-based Gadzooks is a specialty retailer of casual clothing, accessories and shoes for 16-22 year-old females. Gadzooks currently operates 408 stores in 41 states.

This material includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include estimates, targets, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward- looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. There are many factors that could cause forward-looking statements not to be correct, including the cautionary statements contained in this material and risks and uncertainties inherent in the Company's business set forth in the filings of the Company with the Securities and Exchange Commission, including without limitation the Company's most recent Annual Report on Form 10-K, the registration statement filed on Form S-3 in October 2003 and the quarterly report filed on Form 10-Q for the Company's fiscal quarter ended November 1, 2003. The Company does not undertake any obligation to update any forward-looking statements contained in this material.

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