Global Sports, Inc. Reports Third Quarter Results

GLOBAL SPORTS, INC. (NASDAQ: GSPT), an Internet company that develops and operates the online businesses of leading sporting goods retailers, announced today operating results for the third quarter ended September 30, 1999 and the launch of its initial four Web sites. The company also commented on recent important milestones. Yesterday the grand opening of the e-Commerce Web site for The Sports Authority (www.TheSportsAuthority.com) was announced and today, the grand opening of the e-Commerce Web site for The Athlete’s Foot (www.TheAthletesFoot.com) is being announced. In addition, Global Sports has soft launched the e-Commerce sites for, Sport Chalet (www.SportChalet.com), and MC Sports (www.MCSports.com) and expects the grand opening of these sites to occur in the near future. The Company anticipates launching the e-Commerce site for its fifth, as of yet unnamed, retail partner during the fourth quarter of 1999.

Third Quarter Financial Results

Results from continuing operations for the third quarter ended September 30, 1999 consist only of the operating expenses of the company’s e-Commerce operations for the third quarter of 1999 and interest income, as the sites did not become operational until the fourth quarter of 1999. Results from discontinued operations consist of the combined operating performance of Global Sports, Inc.‘s Branded and Off Price & Action Sports divisions.

Operating expenses from continuing operations for the third quarter ended September 30, 1999, net of interest income of approximately $300,000, totaled $7.9 million. Operating expenses consist of Web site development costs of $5.4 million, general and administrative expenses of $1.8 million, and approximately $1.0 million of non-cash compensation expense. Excluding the impact of the non-cash compensation, the operating loss for the period was $6.9 million. Diluted EPS from continuing operations for the third quarter ended September 30, 1999, excluding the impact of non-cash compensation, was a loss of $(0.41). Including the impact of the non-cash compensation resulted in a loss per share of $(0.47). Average shares during the period were 16.9 million and actual shares outstanding at the end of the quarter were 18.4 million.

Third Quarter Highlights

Global Sports, Inc. accomplished many important milestones during the quarter ended September 30, 1999, including the following:

- On September 27, 1999, the Company announced its plans to launch a comprehensive consumer-to-consumer sporting goods auction as part of the www.TheSportsAuthority.com Web site.

- On September 27, 1999 Global Sports announced that it signed a definitive agreement to sell its Off Price & Action Sports division.

- On September 30, 1999, Global Sports, The Sports Authority, and WebMD, Inc., a leading provider of healthcare information on the Internet, announced an exclusive alliance to create a comprehensive sports medicine and fitness e-Commerce channel on WebMD and its network of health content channels. In addition, WebMD committed extensive promotional resources to specifically drive traffic to the new e-Commerce channels.

- Also in the third quarter of 1999, Global Sports announced that it hired Arthur H. Miller, Esq. as executive vice president and general counsel.

Global Sports Recent Announcements

Following are some highlights from announcements made during the fourth quarter of 1999:

- On November 9, 1999, Global Sports’ retail partner The Sports Authority (NYSE:TSA) announced the grand opening of its e-Commerce store: TheSportsAuthority.com, and today, Global Sports’ retail partner The Athlete’s Foot is announcing the grand opening of its e-Commerce store: The AthletesFoot.com. In addition, Global Sports has soft launched the Web sites for Sport Chalet (NASDAQ: SPCH), and MC Sports.

- On October 4, 1999, Global Sports and Yahoo! Inc, a leading global Internet Company, signed a marketing agreement whereby the e-Tail sites of Global Sports’ retail partners will be prominently featured throughout the Yahoo! network of properties, allowing Yahoo!‘s millions of users to easily access Global Sports’ multiple and unique Web sites. In addition, Global Sports and Yahoo! will team up to provide merchandising for the Sports and Recreation section of the Yahoo! Shopping service for Global Sports’ retail partners.

- On October 15, 1999 Global Sports announced an e-Commerce marketing agreement with Rodale, Inc., the publisher of such well-known publications as Men’s Health, Prevention, New Woman, and Runner’s World.

Commenting on the results for the quarter and the Company’s recent accomplishments, Chairman and Chief Executive Officer Michael G. Rubin said, “Our results for the third quarter were in-line with our expectations and represent important investments in the development of Global Sports. More importantly, with the recent launch of the company’s first four Web sites and the current rollout of important marketing programs, we are excited to be truly operating our breakthrough e-Commerce model. We look forward to reporting on these results in the future.”

Global Sports, Inc. (http://www.GS-Interactive.com) is an e-Tail company that operates under exclusive long-term agreements the Internet businesses of leading sporting goods retailers, including The Sports Authority, The Athlete’s Foot, Sport Chalet, and MC Sports. On July 23, 1999 SOFTBANK Capital Partners LP invested $80 million into Global Sports, Inc. Global Sports, Inc. shares are included in the Russell 2000 index.

Contact:

Media Contact:
Dana Stein
Director of Corporate Communications
(610) 768-0900
steind@globalsportsinc.com


Investor Contact:
Michael R. Conn
Senior Vice President Strategic Development
(610) 768-0900
Connm@Globalsportsinc.com