PLAINFIELD, Ind., May 22

Fiscal First Quarter Results

For the first quarter of fiscal 2003, the Company reported a GAAP net loss of $2.6 million, or $0.15 per share, compared with a GAAP net loss of $414,000, or $0.02 per share in the prior year’s first fiscal quarter. Excluding the $282,000 (net of tax) reduction in earnings from the Company’s required adoption of Emerging Issues Task Force Consensus No. 02-16 (EITF 02-16), which addresses the classification of cash consideration received from vendors as either a reduction to advertising expense or an adjustment to cost of sales, the net loss in the first quarter of 2003 was $2.3 million, or $0.13 per share, in line with the Company’s most recent guidance. A description of EITF 02-16 is included in the Company’s current report on Form 8-K filed with the SEC today.

As previously reported, net sales rose 14.2 percent to $129.6 million in the 2003 first quarter, from the $113.5 million reported in the first quarter of 2002. Comparable store sales decreased 6.3 percent. Gross margin decreased to 26.0 percent of net sales for the first quarter of 2003 versus 27.8 percent in the 2002 first quarter. The change in gross margin was primarily the result of higher store occupancy costs and higher markdowns. Selling, general and administrative expenses as a percent of net sales increased to 28.9 percent for the first quarter 2003 versus 28.0 percent in the first quarter of 2002. A decrease in payroll costs as a percent of net sales was more than offset primarily by higher depreciation cost and also higher costs for information systems and insurance.

Robert B. Mang, Chief Executive Officer and Chairman of the Company, commented, “The retail environment remains challenging and we are committed to focusing our priorities on improving top line sales, managing our inventory levels and expense control. We continue to believe our commitment to expanding our presence and selectively opening stores in new and existing markets will positively position us for market share gains in the future.”

New Stores

During the first quarter of fiscal 2003, the Company opened new stores in Peoria, IL and Orland Park (Chicago), IL. On May 15, 2003, the Company also opened a new store in Greenwood, IN replacing the previous Greenwood store, which suffered tornado damage last year. The addition of these three stores brings the total stores in operation to 37 versus the 28 stores at this time last year.

Galyan’s has signed leases for the remaining six new store locations expected to be opened in 2003, which include the Company’s entry into the New York metropolitan market with two stores; one additional store in the Chicago market; and its entry into the Cleveland, Ohio; Richmond, Virginia and Omaha, Nebraska markets.

Outlook

For the second quarter, Galyan’s expects sales in the range of $171 million to $177 million, which assumes comparable store sales in the low single digit negative range. EPS on a fully diluted basis is expected to be between $0.16 and $0.22. The impact of EITF 02-16 is expected to be a loss of approximately $0.02 per share on a fully diluted basis for the second quarter and is included in the second quarter outlook above.

As a result of initiatives we have in place and the fact that we are up against weaker second half comparable store sales last year, we expect improved comparable stores sales in the second half of fiscal year 2003. However, if current trends continue for the balance of the year, Galyan’s would expect sales for fiscal year 2003 to be in the range of $720 million to $735 million, which assumes comparable store sales in the range of low to mid- single digit negative, and EPS on a fully diluted basis of $1.02 to $1.17. The impact of EITF 02-16 is expected to be a loss of approximately $0.07 per share on a fullly diluted basis for the fiscal year 2003 and is included in the fiscal year outlook above.

Quarterly Call Information

Robert B. Mang, Chief Executive Officer and Chairman of the Company, will host the Company’s quarterly conference call today, May 22, 2003, to discuss the results and outlook at 2:00 p.m. EDT. The conference call will be available to all interested parties via a Webcast from www.galyans.com, www.firstcallevents.com or by phone at (888) 381-5770.

For those who cannot listen to the live broadcast, a replay of the call will be available until 6:00 p.m. EDT on May 29, 2003, at (800) 315-4166, or over the Internet at www.galyans.com.

About Galyan’s Sports and Outdoor Adventure

Galyan’s is a specialty retailer that offers a broad range of products that appeal to consumers with active lifestyles, from the casual consumer to the serious sports enthusiast. Galyan’s operates 37 stores in 17 states and offers outdoor and athletic equipment, apparel, footwear and accessories, as well as casual apparel and footwear.