American Eagle Outfitters
AEO
#4165
Rank
$2.96 B
Marketcap
$17.71
Share price
-1.45%
Change (1 day)
4.48%
Change (1 year)
Text size:
<HTML>
<HEAD>
<TITLE>FORM 10-K 405</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">
<P> <FONT
SIZE="2"></FONT></P>
<DIV ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B><FONT
SIZE="3">UNITED STATES</FONT></B></FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>SECURITIES AND
EXCHANGE COMMISSION</B></FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>Washington, D.C.
20549-0001</B></FONT></DIV>
<DIV><FONT
SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><FONT
SIZE="5">FORM 10-K</FONT></B></FONT></DIV>
<DIV><FONT
SIZE="3">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="3" COLOR="#000000" FACE="Wingdings"><B>&#120;</B></FONT><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;&nbsp;
&nbsp;ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE</B></FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>SECURITIES
EXCHANGE ACT OF 1934</B></FONT></DIV>
<DIV><FONT
SIZE="3">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>For the Fiscal
Year Ended January 29, 2000</B></FONT></DIV>
<DIV><FONT
SIZE="3">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>OR</B></FONT></DIV>
<DIV><FONT
SIZE="3">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="3" COLOR="#000000" FACE="Wingdings"><B>&#168;</B></FONT><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;&nbsp;
&nbsp;TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE</B></FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>SECURITIES
EXCHANGE ACT OF 1934</B></FONT></DIV>
<DIV><FONT
SIZE="3">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>Commission File
Number: 0-23760</B></FONT></DIV>
<DIV><FONT
SIZE="3">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="5" COLOR="#000000" FACE="'Times New Roman', Times"><B><FONT
SIZE="6">American Eagle Outfitters, Inc.
<BR>
</FONT></B></FONT><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(Exact name of
registrant as specified in its charter)</B></FONT></DIV>
<DIV><FONT
SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="670" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="324"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman',
Times"><B>Delaware</B></FONT></TH>
<TH WIDTH="10"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="340"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>No.
13-2721761</B></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="324" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(State or other
jurisdiction of incorporation or organization)</FONT></TD>
<TD WIDTH="10"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="340"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(I.R.S. Employer
Identification No.)</FONT></TD>
</TR>
</TABLE>
<DIV><FONT
SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="670" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>150 Thorn Hill
Drive, Warrendale, PA</B></FONT></TH>
<TH><FONT
SIZE="1">&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B><FONT
SIZE="2">15086-7528</FONT></B></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="307" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(Address of
principal executive offices)</FONT></TD>
<TD><FONT
SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(Zip
Code)</FONT></TD>
</TR>
</TABLE>
<DIV><FONT
SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Registrant's telephone number,
including area code: (724) 776-4857</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Securities registered pursuant
to Section 12(b) of the Act: None</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Securities registered pursuant
to Section 12(g) of the Act: Common Shares, without par value</FONT></DIV>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="44%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top" WIDTH="56%"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Title of class)</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT
SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Indicate by check mark whether
the registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months, and (2) has been subject to the filing requirements for at least the
past 90 days. YES&nbsp;&nbsp;</FONT><FONT
SIZE="3" COLOR="#000000" FACE="Wingdings"><B>&#120;</B></FONT><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;
&nbsp;</B></FONT><FONT
COLOR="#000000" FACE="'Times New Roman', Times"> NO&nbsp;<U> &nbsp;&nbsp;&nbsp;
&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Indicate by check mark if
disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is
not contained herein, and will not be contained, to the best of registrant's
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.
</FONT><FONT
COLOR="#000000" FACE="Wingdings">&#120;</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Aggregate market value of
voting stock held by non-affiliates of the registrant, 21,391,503 Common
Shares, based on the $37.94 closing sale price on April 1, 2000 was
$811,540,145.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Indicate the number of shares
outstanding of each of the registrant's classes of common stock, as of the
latest practicable date: 47,010,494 Common Shares were outstanding at April
1, 2000.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>DOCUMENTS INCORPORATED BY
REFERENCE</B></FONT>&nbsp;</DIV>
<DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Part III&#151;Proxy Statement
for 2000 Annual Meeting of Stockholders, in part, as indicated.</FONT></DIV>
<P></P>
<P><FONT
COLOR="#000000" FACE="'Times New Roman', Times"> <B>PART I
<BR>
</B></FONT><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 1.&nbsp;&nbsp;&nbsp;
&nbsp;BUSINESS.</B></FONT></P>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Overview</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We are a specialty retailer of
all-American casual apparel, accessories, and footwear for men and women
between the ages of 16 and 34. We source, design, and market a versatile
line of timeless and relaxed clothing classics like jeans, khakis, and
T-shirts under our American Eagle Outfitters&reg; and AE&reg; brand names
for exclusive sale in our American Eagle Outfitters stores. As of January
29, 2000, we operated 466 stores in 45 states and the District of
Columbia.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We opened our first American
Eagle Outfitters store in 1977. We are currently one of the largest
retailers targeting the highly favorable teenage demographic. We appeal to
our growing consumer base by selling attractively priced fashionable items
that reflect our lifestyle-based retail branding strategy. Our lifestyle
brand concept is incorporated in every aspect of our retail operations. Our
designers interpret fashion trends and develop merchandise that has fresh,
collegiate appeal for our target customer. Our store layout and design are
uniform and convey a natural and youthful brand image. We utilize strong
visual representations of active youth in our in-store print advertising.
Other marketing, advertising and promotional programs further reinforce our
classic American Eagle brand image. We believe the combination of these
efforts has created a strong brand identity for American Eagle Outfitters
&reg;.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Organization and
History</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Until January 2, 1994, our
business was operated by Retail Ventures, Inc. and Natco Industries, Inc.,
two corporations owned principally by members of the Jerome Schottenstein
family. Effective on that date, we obtained all of the operating assets and
liabilities of the American Eagle Outfitters&reg; operations in exchange for
the issuance of shares of our common stock. We lease our office and
distribution center from a partnership owned by the Schottenstein Family and
Schottenstein Stores Corporation. Shottenstein Stores Corporation also
continues to provide us with certain corporate services. See Note 3 of Notes
to Consolidated Financial Statements. On November 2, 1998, we changed our
state of incorporation from Ohio to Delaware. Effective on April 7, 1999, we
completed a plan of reorganization to achieve certain corporate objectives
and to implement a holding company structure. As part of this
reorganization, we changed our name from Natco Industries, Inc. to American
Eagle Outfitters, Inc. and our predecessor, formerly known as American Eagle
Outfitters, Inc. changed its' name to AE Stores Company and became our
wholly owned operating subsidiary. The transaction did not have a
significant impact on our financial statements.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In Fiscal 1999, we formed
Eagle Trading Company, a Mexican distribution subsidiary with operations
near Mexico City, Mexico.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Effective January 31, 2000, we
acquired importing operations from Schottenstein Stores Corporation. The
purpose of the acquisition is to integrate the expertise of the importing
operation into our supply chain process.</FONT></DIV>
<P><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Our financial year is a 52/53
week year that ends on the Saturday nearest to January 31. For tax purposes,
we report on a July year-end. As used herein, "Fiscal 1999", "Fiscal
1998", "Fiscal 1997" and "Fiscal 1996" refer to the respective 52-week
periods ended January 29, 2000, January 30, 1999, January 31, 1998 and
February 1, 1997. "Transition 1996" refers to the twenty-seven week period
from July 30, 1995 to February 3, 1996. "Fiscal 2000" refers to the 53-week
period ending January 27, 2001.</FONT> </P>
<DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Our principal offices are
located at 150 Thorn Hill Drive, Warrendale, Pennsylvania 15086-7528 and our
telephone number is (724) 776-4857.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Brand and Merchandising
Strategies</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Over the past several years,
we have focused on several core brand and merchandising strategies to
differentiate ourselves from our competition, improve our profitability and
increase sales. These strategies include:</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Build the American Eagle
Outfitters Brand.</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Several years ago, we
sharpened the definition of our target customer. Since then we have been
focused on our AE brand strategy to provide overall value through the entire
shopping experience&#151;marketing, service, merchandise quality, price,
fashion, and shopping environment. We created a focused brand image based on
a youthful active lifestyle, classic American styles and affordability. Our
brand image is communicated through all aspects of our operations, from
merchandising to marketing to our store environment.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In Fiscal 1998, we began
selling merchandise on our internet site, <I>ae.com</I>, and launched our
catalog, <I>AE Magazine</I>. In Fiscal 1999, we experienced increased
customer traffic on our internet site, and increased the number and
circulation of our catalogs. Increased marketing initiatives further
strengthen our brand image. In 1999, we announced several internet
partnerships, which link our website to websites of other companies, such as
<I>barnesandnoble.com, ESPN, reel.com, </I>and <I>CDNow</I>. We believe
these partnerships will add customer traffic and provide complimentary
services for our internet customers. Magazine advertising is also an
important part of our brand building strategy. We advertise in magazines
such as <I>Mademoiselle, Seventeen, Spin, Teen People</I>, <I>In Style</I>
and <I>ESPN</I>, whose readers match a segment of the demographic profile of
our target customer range.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In order to continue to build
brand recognition, we have allocated more resources to marketing. In Fiscal
1999, we spent $27.2 million, or 3.3% of sales, on advertising and marketing
which was an increase of almost 66% from $16.4 million, or 2.8% of sales in
the prior year.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Merchandising
Strategies</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">An integral part of our
strategy is to offer merchandise that reinforces our brand image and serves
our target customer through items which are fashion-right and value-priced
to drive added sales. We strive to intelligently source merchandise
production in order to maximize merchandise margins.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We provide great quality
apparel, footwear, and accessories at affordable prices. We believe our
prices are competitive with or lower than those of comparable mall-based
retailers. We have established relationships with key manufacturers through
our own sourcing company to ensure the quality of our goods. Our sourcing
and merchandise strategies allow us to execute our affordable pricing
strategy while maintaining high quality standards.</FONT></DIV>
<DIV></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Growth
Strategies</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Our growth strategies are
focused on developing and expanding the visibility and availability of a
strong brand throughout the United States. The principal elements of our
growth strategies include:</FONT></DIV>
<P></P>
<DIV ALIGN="left"> <P><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Geographical
Growth</I></FONT></P>
</DIV>
<DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Our primary store expansion
strategy is to continue our geographic expansion throughout the United
States and to fill-in existing markets. We currently operate in 45 states,
with the highest concentration of locations in Ohio, Pennsylvania, New York,
Michigan, Illinois, and Virginia. We opened 80 stores in Fiscal 1999,
increasing our store base by nearly 22% and our selling square footage by
over 27%. Of our 80 new stores we opened in Fiscal 1999, 27 stores, or
approximately 34%, are in new markets in the Northwest and
Southwest.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The table below shows certain
information relating to our historic store growth:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE ALIGN="center" CELLSPACING=0 CELLPADDING=0 WIDTH="690">
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1997</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1996</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Transition
<BR>
1996</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center">&nbsp;</TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Stores at beginning of
period</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">386</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">332</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">303</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">272</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">266</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Stores opened during the
period</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">80</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">56</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">36</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">38</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">11</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Stores closed during the
period</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(2</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(7</FONT></TD>
<TD> )</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(7</FONT></TD>
<TD>)</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(5</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></DIV>
</TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Total Stores at End of
Period</B></FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">466</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">386</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">332</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">303</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">272</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Continue to Invest in Our
Distribution Facility</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">To support our store expansion
strategy, we increased our distribution capacity. Over the past two years,
we have invested approximately $9.5 million to upgrade and expand our
distribution center and headquarters facility by 120,000 square feet. This
investment has lowered our unit payroll costs by 8% in Fiscal 1998 and by an
additional 12% in Fiscal 1999.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Mall Types</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The American Eagle brand
offers customers fashionable merchandise at value-oriented prices, appealing
to a broad income demographic. Therefore, we can operate profitably in a
variety of mall types. While substantially all stores to be opened in Fiscal
2000 will be in regional shopping malls, we believe that selected street
locations in high traffic urban settings and university towns, as well as
airports and strip centers, provide attractive expansion
opportunities.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Flagship
Stores</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In 1999, we opened two
"flagship" stores, which are larger stores where we offer our customers a
broader merchandise selection and more exciting store environment. In July
1999, our first flagship store in San Francisco opened. The store is 8,400
gross square feet, representing our largest store. In December 1999, we
opened our second flagship store in the Georgetown area of Washington, D.C.
This store is approximately 8,000 gross square feet.</FONT></DIV>
<P><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Direct to Consumer
Opportunities</I></FONT></P>
<DIV ALIGN="left"></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In Fiscal 1998, we began
selling merchandise through our internet site, <I>ae.com</I>, and launched
our catalog, <I>AE Magazine</I>, to further promote sales through
alternative distribution channels. Our internet site is an extension of the
AE lifestyle that we convey in our stores and our catalog. We offer
approximately 80% of our apparel through <I>ae.com</I> and we also provide
movie clips, horoscopes, and book selections, all carefully selected and
edited for our target customer. Since inception, we have experienced an
increase in traffic on our internet site. We also increased our circulation
for our catalogs to a total of 4.0 million in Fiscal 1999 from 0.9 million
in Fiscal 1998. Fiscal 1999 also included an additional holiday
catalog.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Remodel
Opportunities</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We believe significant
opportunities exist to improve our sales productivity because we are in the
early stages of the development of our brand. Our brand provides
opportunities for expansion of existing product categories into additional
markets, as well as expansion into complimentary product lines. For example,
women's apparel has increased as a percentage of total sales from 24% in
Fiscal 1995 to 53% in Fiscal 1999. Additionally, in Fiscal 1999, we
introduced personal care products in 75 of our stores, including a unisex
fragrance, <I>Alive</I>.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In order to maintain a
balanced presentation in each merchandise category and to accommodate
additional product categories, we are seeking larger new store locations and
increasing selling square footage in store remodels. Our new stores planned
for Fiscal 2000 will average over 5,500 square feet compared to 4,800 for
Fiscal 1999 openings. We remodeled 25 stores in Fiscal 1999, and we tested a
new store design in five locations. We believe this new format will improve
the overall shopping experience for our customers by providing innovative
design features and incorporating the latest store technologies.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Merchandise
Categories</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We design and sell virtually
all of our merchandise under our own brands. Our merchandising strategy
focuses on providing a carefully selected, in-season, merchandise assortment
within our principal merchandise groups: mens and womens apparel, footwear
and accessories. Merchandise is regularly updated with new styles, colors
and fabrics. We offer quality fashionable interpretations of fundamental
wardrobe items such as jeans, sweaters, khakis, T-shirts, woven shirts, and
fleece.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"> <P><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The following table shows the
approximate percentage of net sales attributable to each merchandise
group:</FONT></P>
<FONT
SIZE="1">&nbsp;</FONT></DIV>
<TABLE ALIGN="center" CELLSPACING=0 CELLPADDING=0 WIDTH="690">
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1997</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1996</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Transition
<BR>
1996</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Men's apparel</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">39</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">40</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">41</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">36</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">52</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Women's apparel</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">53</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">52</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">50</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">47</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">20</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Footwear and accessories
&#151;men's and women's</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">17</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">18</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
</TR>
</TABLE>
<P> </P>
<DIV ALIGN="left"> <P><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Store
Operations</B></FONT></P>
</DIV>
<DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Our store operations are
managed by an Executive Vice President and Director of Store Operations,
seven regional managers and fifty-two district managers, each of whom
supervises an average of nine stores. A typical store has a store manager,
two assistant store managers, four full-time and six to twelve part-time
sales associates, depending on the season. The hiring and training of new
employees is the responsibility of the store manager and district manager,
and we have established training and operations procedures to assist
them.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Our continued success is
dependent in part on our ability to attract, retain, and motivate qualified
employees. Our attractive incentive compensation program and creative
training program are vital to this success. Sales associates are trained to
provide superior customer service in order to maximize sales, and to ensure
that store merchandising plans are executed properly and to minimize
inventory shrinkage. We utilize <I>AE Digital University</I>, a
state-of-the-art in-store training curriculum to provide on-site training
and skills development to sales associates and managers.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">During Fiscal 1998, we
implemented staff scheduling software to improve productivity and customer
service by better aligning store staffing with expected customer traffic. In
Fiscal 1999, this software, along with other technical and planning process
improvements, has contributed to improving the productivity of store payroll
expense.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">To ensure that we maximize our
investment when we expand into new markets, we have a dedicated "new store
opening" team. This team combines the expertise of experienced store
managers and marketing and visual professionals so that we open new stores
to achieve maximum productivity.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Regional, district, and store
managers receive performance bonuses based on sales, payroll, and shrinkage
goals for their stores. Sales associates and assistant managers are eligible
for a number of incentives, including cash awards and prizes for achieving
certain sales goals. In Fiscal 1997, we introduced <I>AE Rewards</I>, an
incentive program that enables hourly sales associates to earn points for
achieving sales goals. These points can be redeemed for a variety of prizes
that they can select from an awards catalog.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Store
Environment</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We consider our stores and
in-store marketing as principal elements that signify and convey the image
of our brand. Our store design, furniture, fixtures and music are carefully
coordinated to create a store environment that is consistent with the
casual, fashionable image of the brand. To promote consistency and name
recognition, our stores are designed to be substantially identical, with a
warm and casual ambiance created by the use of worn hardwood floors, light
colored wooden fixtures and off white walls. Large in-store photographs
depict young people enjoying an active, casual lifestyle with friends and
family and reflect our casual, "live your life" attitude. We believe that
our store ambiance is welcoming and comfortable and promotes a pleasant
shopping experience. We believe that our current store design in the
majority of our stores is effective, meeting the needs of our target
customer. However, we understand that we must evolve and react quickly to
the rapidly changing retail environment. Accordingly, in Fiscal 1999, we
developed a new AE store design, which was reflected in five stores opened
in 1999. The new format enhances the casual atmosphere of our store by
providing comfortable seating areas, stools in the checkout area, enhanced
music systems and video screens to invite the customer to relax and enjoy
their shopping experience. We feel that this enhanced format will improve
the overall shopping experience of our customers. Beginning in Fiscal 2000,
all new stores will reflect this re-design format.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We regularly refurbish and
renovate our stores to provide better customer service and upgrade to our
newest store design, particularly in connection with lease renewals. In
Fiscal 1999, we renovated 25 older stores at a total cost of $9.4 million.
Also, we spent $1.4 million in fixture and leasehold retrofits to existing
stores.</FONT></DIV>
<P>&nbsp;</P>
<P><FONT
SIZE="2"></FONT></P>
<P><B><FONT
FACE="Times New Roman">Store Locations</FONT></B></P>
<P><FONT
FACE="Times New Roman">Our stores average approximately 4,400 gross square
feet and approximately 3,500 on a selling square foot basis. At January 29,
2000, we operated 466 stores in 45 states and the District of Columbia shown
below:</FONT></P>
<P>
<TABLE WIDTH="690" CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Alabama</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Indiana</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Missouri</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Oregon</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">11 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">14 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">12 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">3 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Arkansas</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Iowa</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Nebraska</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Pennsylvania</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">3 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">12 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">4 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">36 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">California</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Kansas</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Nevada</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Rhode Island</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">3 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">5 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">3 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">1 store</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Colorado</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Kentucky</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">New Hampshire</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">South Carolina</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">5 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">6 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">4 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">8 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Connecticut</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Louisiana</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">New Jersey</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">South Dakota</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">9 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">8 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">16 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">2 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Delaware</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Maine</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">New Mexico</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Tennessee</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">1 store</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">1 store</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">2 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">14 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">District of Columbia</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Maryland</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">New York</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Texas</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">1 store</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">12 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">28 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">21 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Florida</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Massachusetts</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">North Carolina</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Utah</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">20 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">16 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">18 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">5 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Georgia</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Michigan</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">North Dakota</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Vermont</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">16 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">22 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">3 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">2 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Idaho</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Minnesota</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Ohio</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Virginia</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">1 store</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">10 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">28 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">21 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Illinois</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Mississippi</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Oklahoma</FONT></U></B></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Washington</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">22 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">5 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="178"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">5 stores</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">10 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"><B>&#160; </B></TD>
<TD VALIGN="TOP" WIDTH="176"><B>&#160; </B></TD>
<TD VALIGN="TOP" WIDTH="178"><B>&#160; </B></TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">West Virginia</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&#160; </TD>
<TD VALIGN="TOP" WIDTH="176">&#160; </TD>
<TD VALIGN="TOP" WIDTH="178">&#160; </TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">7 stores</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175"><B>&#160; </B></TD>
<TD VALIGN="TOP" WIDTH="176"><B>&#160; </B></TD>
<TD VALIGN="TOP" WIDTH="178"><B>&#160; </B></TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><B><U><FONT
FACE="Times New Roman">Wisconsin</FONT></U></B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="178">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="176">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="175">&#160; </TD>
<TD VALIGN="TOP" WIDTH="176">&#160; </TD>
<TD VALIGN="TOP" WIDTH="178">&#160; </TD>
<TD VALIGN="TOP" WIDTH="176"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">10 stores</FONT></P>
</TD>
</TR>
</TABLE>
<P><B></B></P>
<P><B><FONT
FACE="Times New Roman">Purchasing</FONT></B></P>
<P><FONT
FACE="Times New Roman">We purchase merchandise from approximately 110 North
American and foreign suppliers who either manufacture their own merchandise
or supply merchandise manufactured by others, or both. During Fiscal 1999,
approximately 21% of our merchandise was purchased from North American
suppliers and the remaining 79% from foreign suppliers. Since we rely on a
small number of overseas sources for a significant portion of our purchases,
any event causing the disruption of imports including the insolvency of a
significant supplier, the imposition of additional import restrictions, or
political or economic disruptions in a country where our vendor factories
are located, could have a material adverse affect on our operations. We do
not maintain any long-term or exclusive commitments or arrangements to
purchase from any single supplier. </FONT></P>
<P><FONT
FACE="Times New Roman">All of our suppliers receive a vendor compliance manual
that describes our quality standards and shipping instructions. We maintain
a quality control department at our distribution center to inspect incoming
merchandise shipments for uniformity of sizes and colors, and for overall
quality of manufacturing. Periodic quality inspections are also made by our
employees at manufacturing facilities in the United States and
internationally to identify potential problems prior to shipment of
merchandise. Additionally, our merchant group works directly with many
factories to address quality control issues before merchandise is
shipped.</FONT></P>
<P><FONT
FACE="Times New Roman"><B>Merchandise Design</B></FONT></P>
<P><B><FONT
FACE="Times New Roman"></FONT></B><FONT
FACE="Times New Roman">A key element of our business strategy is to design
products geared to a well-defined customer group and which embody the image
of a casual, youthful lifestyle. Our internal design group is divided
primarily into separate mens and womens design teams. The product
development process begins with senior management in the merchandising and
design areas, who develop seasonal merchandise themes and concepts. These
design themes and concepts are developed through domestic and foreign
travel, retail shopping and an awareness of fashions and activities
currently favored by the young, active segment of the population. These
themes and concepts are then used to create items for the merchandise line
that are then developed by the designers. The designers collaborate with our
buyers to create a coordinated merchandise presentation for each season,
which is augmented by periodic, in-season merchandise updates.</FONT></P>
<P><B><FONT
FACE="Times New Roman">Merchandise Inventory, Replenishment and
Distribution</FONT></B></P>
<P><FONT
FACE="Times New Roman">Purchase orders, executed by our buyers, are entered
into the computerized merchandise data system at the time of order.
Merchandise is normally shipped directly from vendors to our central
distribution center near Pittsburgh, PA. Upon receipt, merchandise is
entered into the merchandise data system, then processed and prepared for
shipment to the stores or forwarded to a warehouse holding area to be used
as store replenishment goods. The allocation of merchandise among stores
varies based upon a number of factors relating to the specific
characteristics of each store such as geographic location, customer
demographics or store size. Merchandise is shipped to the stores two to
three times per week depending upon the season and store
requirements.</FONT></P>
<P><FONT
FACE="Times New Roman">The specialty retail apparel business fluctuates
according to changes in the economy and customer preferences, dictated by
fashion and season. These fluctuations especially affect the inventory owned
by apparel retailers, since merchandise usually must be ordered well in
advance of its selling season. While we endeavor to test many merchandise
items before ordering large quantities, we are still vulnerable to changing
fashion trends and fluctuations in customer demands. In addition, the
cyclical nature of the retail business requires that we carry a significant
amount of inventory, especially prior to peak selling seasons, when we build
up our inventory levels. We enter into agreements for the manufacture and
purchase of our private label apparel well in advance of the applicable
selling season. As a result, we are vulnerable to changes in consumer
demand, pricing shifts, and the timing and selection of merchandise
purchases.</FONT></P>
<P><FONT
FACE="Times New Roman">We continually review our inventory levels in order to
identify slow-moving merchandise and generally use markdowns to clear this
merchandise. Markdowns may occur when inventory exceeds customer demand for
reasons of style, seasonal adaptation, changes in customer preference, lack
of consumer acceptance of fashion items, competition, or we determine that
the inventory in stock will not sell at its currently ticketed price. Such
markdowns may have an adverse impact on our earnings, depending on the
extent and amount of inventory affected.</FONT></P>
<P><B><FONT
FACE="Times New Roman">Customer Credit</FONT></B></P>
<P><FONT
FACE="Times New Roman">We offer our customers an American Eagle Outfitters
private label credit card. We have no liability to the card issuer for bad
debt expense, provided that purchases are made in accordance with the
issuing banks' procedures. We believe that providing in-store credit through
use of our proprietary credit card promotes incremental sales and encourages
customer loyalty. Our credit card holders receive special promotional offers
and advance notice of all in-store sales events. The names and addresses of
these preferred customers are added to our customer database which is used
primarily for direct mail purposes.<B> </B>Customers may also pay for their
purchases with American Express&#174;, Discover&#174;, MasterCard&#174;, Visa
&#174;, cash or check. During Fiscal 1999, approximately 48% of all
purchases were paid for with credit cards.</FONT></P>
<P><FONT
FACE="Times New Roman">In November 1998, we replaced our gift certificate
program with stored value gift cards. Gift cards with values from $10 to
$200 can be purchased. When the recipient uses the gift card, the value of
the purchase is electronically deducted and any remaining value can be used
for future purchases. During Fiscal 1999, we sold 98% more in gift cards and
certificates than the prior year. In connection with stored value cards and
gift certificates, a deferred revenue amount is established upon the
purchase of the card by the customer and revenue is recognized upon
redemption and purchase of the merchandise.</FONT></P>
<P><B><FONT
FACE="Times New Roman">Marketing and Advertising</FONT></B></P>
<P><FONT
FACE="Times New Roman">Our marketing and advertising strategies are designed
to increase consumer recognition of our merchandise and establish American
Eagle Outfitters as a differentiated lifestyle brand. We currently focus our
advertising efforts on direct mail, in-store signage, promotional events,
and print media. Seasonally, we review and consider other means of
advertising. </FONT></P>
<P></P>
<P><FONT
FACE="Times New Roman">In-store advertising is primarily communicated through
large graphics that portray men and women engaged in activities associated
with an active lifestyle. Promotions, contests and gifts with purchase are
also offered to customers, often in conjunction with corporate partners
whose target customer demographics are similar to ours. Examples of
co-marketing efforts include music compact discs produced in conjunction
with a national music magazine and contests for prizes including mountain
bikes, four-wheel drive vehicles and vacation trips.</FONT></P>
<P><FONT
FACE="Times New Roman">We utilize direct mail to announce upcoming sales, the
arrival of new merchandise and to promote our image. Promotional materials
are also included in the monthly statement for our private label credit
card. We use our own list of customers and database mining techniques to
target direct mail materials to existing and potential customers.</FONT></P>
<P><FONT
FACE="Times New Roman">We also utilize print advertising to build recognition
of our brand. Our print ads appear in nationwide publications with reader
demographic profiles that match a segment of our target customer
range.</FONT></P>
<P><B><FONT
FACE="Times New Roman">Information Systems</FONT></B></P>
<P><FONT
FACE="Times New Roman">Our computer information systems consist of a full
range of retail financial and merchandising systems which include
merchandise planning, distribution center processing, inventory allocation,
shipment processing, in-store systems, sales reporting, and financial
processing and reporting.</FONT></P>
<P><FONT
FACE="Times New Roman">In Fiscal 1999, our computer disaster recovery planning
was expanded to cover all aspects of our business and we now have a detailed
execution plan in the event of a major business disruption. During 1999, we
made significant technological improvements in our stores including testing
of in-store computers, implementing thermal printers, installing hand-held
devices in our stores to increase efficiency in price changes and
re-ticketing merchandise. A new merchandise allocation software application
was implemented to support increased sales volumes. We initiated the
planning, design, and testing of a new warehouse management system to be
fully implemented in Spring 2000. We standardized hardware and software for
both our home office and field personnel.</FONT></P>
<P><FONT
FACE="Times New Roman"> In June 1999, we completed the testing and
implementation of software and systems to ensure that they successfully
responded to the Year 2000 change. As a result of these efforts, we
experienced no significant disruptions in mission critical information
technology and non-information technology systems. We will continue to
monitor our mission critical computer applications and those of our
suppliers and business partners throughout the year 2000 to ensure that any
latent Year 2000 matters that may arise are addressed promptly. </FONT></P>
<P><FONT
FACE="Times New Roman">During 2000, we plan to install in-store computers in
all our stores to link them with the home office. We will modify our
programs related to our hand-held devices to encompass inventory receiving
and transfer processing. We will begin implementation of supply chain
software and begin creating a data warehouse for our organization.</FONT></P>
<P><B><FONT
FACE="Times New Roman">Competition</FONT></B></P>
<P><FONT
FACE="Times New Roman">The retail apparel industry is very competitive. We
compete primarily on the basis of quality, fashion, service, selection and
price. We compete with various divisions of The Limited and The Gap, as well
as with retail chains such as Abercrombie &amp; Fitch, The Buckle, Pacific
Sunwear, and other national, regional and local retailers catering to a
youthful customer. We also compete with the casual apparel and footwear
departments of department stores, often in the same mall as our stores. Many
of our competitors are considerably larger and have substantially greater
financing, marketing, and other resources. </FONT></P>
<P><B><FONT
FACE="Times New Roman">Trademarks and Service Marks</FONT></B></P>
<P><FONT
FACE="Times New Roman">We have registered American Eagle Outfitters&#174; in
the U.S. Patent and Trademark Office (&quot;PTO&quot;) as a trademark for
clothing products and for a variety of non-clothing products, and as a
service mark for retail clothing store service. We have also registered AE
&#174; as a trademark for clothing products, and AEO&#174; as a trademark
for clothing products and a variety of non-clothing products. AE&#174; is
pending for a variety of non-clothing and personal care items. American
Eagle has applied to the PTO for the registration of AE&#153; as a trademark
for footwear that will be registered in the near future, and AE Khaki&#153;,
and AE Supply&#153; as trademarks for clothing products. Additionally, the
on-line retail clothing trademark, @e, is registered as a
trademark.</FONT></P>
<P><FONT
FACE="Times New Roman"><B>Employees</B></FONT></P>
<P></P>
<P><B><FONT
FACE="Times New Roman"></FONT></B></P>
<P><FONT
FACE="Times New Roman">As of March 1, 2000, we had 8,149 employees, of whom
1,754 were full-time salaried employees, 609 were full-time hourly employees
and 5,786 were part-time and seasonal hourly employees. We consider our
relationship with our employees to be satisfactory.</FONT></P>
<P><B><FONT
FACE="Times New Roman">ITEM 2.&nbsp;&nbsp;&nbsp;
&nbsp;PROPERTIES.</FONT></B></P>
<P><FONT
FACE="Times New Roman">We rent our headquarters and distribution facilities
near Pittsburgh, PA from Linmar Realty Company (</FONT><FONT
FACE="Courier New">&quot;</FONT><FONT
FACE="Times New Roman">Linmar</FONT><FONT
FACE="Courier New">&quot;</FONT><FONT
FACE="Times New Roman">), a related party. Our headquarters and distribution
center occupy approximately 430,000 square feet, 49,000 square feet of which
is used for executive, administrative and buying offices. This includes an
expansion of 120,000 square feet in September 1999. As a result of this
expansion, a new lease was entered into which expires on December 31, 2020.
We also lease additional office space comprising approximately 20,000 square
feet near Pittsburgh, PA and approximately 15,000 square feet for our design
and production offices in New York, NY. These leases expire in August 2004
and October 2008, respectively. In addition, we lease a distribution
facility near Mexico City, Mexico for approximately 42,000 square
feet.</FONT></P>
<P><FONT
FACE="Times New Roman">All of our stores are leased. The store leases
generally have terms of approximately 10 years. Most of these leases provide
for base rent and require the payment of a percentage of sales as additional
rent when sales reach specified levels. Under our store leases, we are
typically responsible for maintenance and common area charges, real estate
taxes and certain other expenses. We have generally been successful in
negotiating renewals as leases near expiration. </FONT></P>
<P><B><FONT
FACE="Times New Roman">ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL
PROCEEDINGS.</FONT></B></P>
<P><FONT
FACE="Times New Roman">We are subject to various claims and legal actions that
arise in the ordinary course of our business. We believe that such claims
and legal actions, individually and in the aggregate, will not have a
material adverse effect on our business or our financial
condition.</FONT></P>
<P><B><FONT
FACE="Times New Roman">ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;SUBMISSION OF MATTERS TO
A VOTE OF SECURITY HOLDERS.</FONT></B></P>
<P><FONT
FACE="Times New Roman">Not applicable.</FONT></P>
<P><B><FONT
FACE="Times New Roman">PART II</FONT></B></P>

<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2% NOWRAP><B><FONT
FACE="Times New Roman">ITEM 5. </FONT></B></TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%><B><FONT
FACE="Times New Roman">MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS.</FONT></B></TD>
</TR>
</TABLE>
<P><FONT
FACE="Times New Roman">Our stock is traded on the Nasdaq National Market under
the symbol</FONT><FONT
FACE="Courier New"> &quot;</FONT><FONT
FACE="Times New Roman">AEOS</FONT><FONT
FACE="Courier New">&quot;</FONT><FONT
FACE="Times New Roman">. The following table sets forth the range of high and
low sales prices of the common stock as reported on The Nasdaq National
Market during the periods indicated. As of March 20, 2000, there were 197
stockholders of record. However, when including associates who own shares
through the Company's 401(k) retirement plan and employee stock purchase
plan and others holding shares in broker accounts under street name, the
Company estimates the shareholder base at approximately 20,000. The
following information reflects the January 1998, May 1998, and May 1999
stock splits.</FONT></P>
<P></P>
<P>
<TABLE WIDTH="500" CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>
<TR>
<TH VALIGN="bottom"> <DIV ALIGN="left"><FONT
FACE="Times New Roman"></FONT><FONT
FACE="Times New Roman" SIZE="2">For the Quarters Ended</FONT> </DIV>
<HR NOSHADE ALIGN="left" WIDTH="60%" SIZE="1"> </TH>
<TH VALIGN="TOP" COLSPAN="5"> <FONT
FACE="Times New Roman" SIZE="2">Market Price</FONT> <HR NOSHADE
ALIGN="right" WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TH VALIGN="TOP"></TH>
<TH VALIGN="TOP" COLSPAN="2"> <FONT
FACE="Times New Roman" SIZE="2">High</FONT> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TH>
<TH VALIGN="bottom"></TH>
<TH VALIGN="bottom" COLSPAN="2"> <FONT
FACE="Times New Roman" SIZE="2">Low</FONT> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">April 1998</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">20.79</FONT></P>
</TD>
<TD VALIGN="TOP">&nbsp;&nbsp;</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">7.75</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">July 1998</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">26.75</FONT></P>
</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">16.57</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">October 1998</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">27.31</FONT></P>
</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">14.13</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">January 1999</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">34.19</FONT></P>
</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">21.88</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP">&#160; </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">April 1999</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">43.88</FONT></P>
</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">31.31</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">July 1999</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">51.69</FONT></P>
</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">37.88</FONT> </TD>
</TR>
<TR>
<TD VALIGN="TOP" HEIGHT="20"> <P><FONT
FACE="Times New Roman">October 1999</FONT> </TD>
<TD VALIGN="TOP" HEIGHT="20"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP" HEIGHT="20"> <P ALIGN="right"><FONT
FACE="Times New Roman">57.63</FONT> </TD>
<TD VALIGN="TOP" HEIGHT="20">&nbsp;</TD>
<TD VALIGN="TOP" HEIGHT="20"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP" HEIGHT="20"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">32.69</FONT> </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">January 2000</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">49.63</FONT></P>
</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; <FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">34.56</FONT></P>
</TD>
</TR>
</TABLE>
<P><FONT
FACE="Times New Roman">We have never paid cash dividends and presently
anticipate that all of our future earnings will be retained for the
development of our business and the share repurchase program (See Note 12 of
the Consolidated Financial Statements). We do not anticipate paying cash
dividends in the foreseeable future. The payment of any future dividends
will be at the discretion of our Board of Directors and will be based on
future earnings, financial condition, capital requirements and other
relevant factors.</FONT></P>
<P>&nbsp; </P>
<P><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> </FONT><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 6.&nbsp;&nbsp;&nbsp;
&nbsp;SELECTED CONSOLIDATED FINANCIAL DATA.</B></FONT></P>
<DIV ALIGN="center">&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B><FONT
SIZE="5">Selected Consolidated Financial Data</FONT><FONT
SIZE="4">
<BR>
</FONT> (dollars and shares in thousands, except per share amounts and square
foot data)</B></FONT></DIV>
<DIV ALIGN="center">&nbsp;</DIV>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
<TD WIDTH="28%" ALIGN="LEFT">&nbsp;</TD>
<TD ALIGN="RIGHT" COLSPAN="10"> <DIV ALIGN="center"><B>For the Years
Ended</B></DIV>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="28%" ALIGN="LEFT">&nbsp;</TD>
<TD ALIGN="RIGHT" COLSPAN="10"> <HR NOSHADE WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="28%" ALIGN="LEFT" HEIGHT="37">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH="14%" ALIGN="RIGHT" HEIGHT="37"> <DIV ALIGN="center"><B>January
29,</B></DIV>
</TD>
<TD WIDTH="2%" ALIGN="LEFT" HEIGHT="37"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD WIDTH="13%" ALIGN="RIGHT" HEIGHT="37"> <DIV ALIGN="center"><B>January
30,</B></DIV>
</TD>
<TD WIDTH="2%" ALIGN="LEFT" HEIGHT="37"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD WIDTH="12%" ALIGN="RIGHT" HEIGHT="37"> <DIV ALIGN="center"><B>January
31,</B></DIV>
</TD>
<TD WIDTH="2%" ALIGN="LEFT" HEIGHT="37"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD WIDTH="11%" ALIGN="RIGHT" HEIGHT="37"> <DIV ALIGN="center"><B>February
1,</B></DIV>
</TD>
<TD WIDTH="2%" ALIGN="LEFT" HEIGHT="37"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD WIDTH="11%" ALIGN="RIGHT" HEIGHT="37"> <DIV ALIGN="center"><B>February
3,</B></DIV>
</TD>
<TD WIDTH="3%" ALIGN="LEFT" HEIGHT="37">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%"> <DIV ALIGN="center"><B>2000</B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="2%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="RIGHT" WIDTH="13%"> <DIV ALIGN="center"><B>1999</B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="2%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="RIGHT" WIDTH="12%"> <DIV ALIGN="center"><B>1998</B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="2%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="RIGHT" WIDTH="11%"> <DIV ALIGN="center"><B>1997</B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="2%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="RIGHT" WIDTH="11%"> <DIV ALIGN="center"><B>1996(2)</B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%"> <HR NOSHADE SIZE="1" WIDTH="100%"> </TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%"> <HR NOSHADE SIZE="1" WIDTH="100%"> </TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%"> <HR NOSHADE SIZE="1" WIDTH="100%"> </TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%"> <HR NOSHADE SIZE="1" WIDTH="100%"> </TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%"> <HR NOSHADE SIZE="1" WIDTH="100%"> </TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="2%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="RIGHT" WIDTH="13%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="2%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="RIGHT" WIDTH="12%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="2%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="RIGHT" WIDTH="11%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="2%"> <DIV ALIGN="center"><B></B></DIV>
</TD>
<TD ALIGN="RIGHT" WIDTH="11%"> <DIV ALIGN="center"><B>(Unaudited)</B></DIV>
</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Net sales (1)</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;832,104</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;587,600</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;405,713</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;326,404</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;340,323</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Gross profit</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;356,508</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;234,511</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;136,967</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;98,756</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;90,908</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Gross profit as a percentage of sales</TD>
<TD ALIGN="RIGHT" WIDTH="14%">42.8</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="13%">39.9</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="12%">33.8</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="11%">30.3</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="11%">26.7</TD>
<TD ALIGN="LEFT" WIDTH="3%">%</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Operating income (loss) (1)</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;149,514</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87,053</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31,120</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;8,859</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">($ 1,073</TD>
<TD ALIGN="LEFT" WIDTH="3%">)</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Net income (loss)</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90,660</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54,118</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,537</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;5,925</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">($ 1,334</TD>
<TD ALIGN="LEFT" WIDTH="3%">)</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Net income (loss) as a percentage of sales</TD>
<TD ALIGN="RIGHT" WIDTH="14%">10.9</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="13%">9.2</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="12%">4.8</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="11%">1.8</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="11%">(0.4</TD>
<TD ALIGN="LEFT" WIDTH="3%">%)</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Basic earnings (loss) per share</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;1.96</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;1.20</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.44</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;0.13</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">($ 0.03</TD>
<TD ALIGN="LEFT" WIDTH="3%">)</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Diluted earnings (loss) per share</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;1.86</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;1.13</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.43</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;0.13</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">($ 0.03</TD>
<TD ALIGN="LEFT" WIDTH="3%">)</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Weighted average basic shares outstanding</TD>
<TD ALIGN="RIGHT" WIDTH="14%">46,370</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">45,281</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">44,181</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">43,899</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">43,890</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Weighted average diluted shares outstanding</TD>
<TD ALIGN="RIGHT" WIDTH="14%">48,742</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">47,952</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">45,633</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">45,388</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">43,890</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Total assets</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;354,628</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;210,948</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;144,795</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;110,438</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;95,363</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Total cash and short-term investments</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;168,492</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,300</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48,359</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;34,326</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;19,986</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Working capital</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;174,137</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94,753</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48,486</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;34,378</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;24,775</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Stockholders' equity</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;264,501</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;151,197</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90,808</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;71,056</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;63,796</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Average return on stockholders' equity</TD>
<TD ALIGN="RIGHT" WIDTH="14%">43.6</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="13%">44.7</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="12%">24.1</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="11%">8.8</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="11%">(2.3</TD>
<TD ALIGN="LEFT" WIDTH="3%">%)</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Current ratio</TD>
<TD ALIGN="RIGHT" WIDTH="14%">2.97</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">2.59</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">1.90</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">1.87</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">1.78</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Total non-current liabilities</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;1,702</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">--</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">--</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">--</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">--</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Long term debt</TD>
<TD ALIGN="RIGHT" WIDTH="14%">--</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">--</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">--</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">--</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">--</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Total stores at year-end</TD>
<TD ALIGN="RIGHT" WIDTH="14%">466</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">386</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">332</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">303</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">273</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Comparable store sales increase (decrease)</TD>
<TD ALIGN="RIGHT" WIDTH="14%">20.9</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="13%">32.1</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="12%">15.1</TD>
<TD ALIGN="LEFT" WIDTH="2%">%</TD>
<TD ALIGN="RIGHT" WIDTH="11%">(1.8</TD>
<TD ALIGN="LEFT" WIDTH="2%">%)</TD>
<TD ALIGN="RIGHT" WIDTH="11%">6.6</TD>
<TD ALIGN="LEFT" WIDTH="3%">%</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Net sales per average selling square foot
(3)</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;569</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;497</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;391</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;340</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;381</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Total selling square feet at end of period</TD>
<TD ALIGN="RIGHT" WIDTH="14%">1,625,731</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">1,276,889</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">1,080,657</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">990,980</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">916,796</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Net sales per average gross square foot (3)</TD>
<TD ALIGN="RIGHT" WIDTH="14%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;451</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;388</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;303</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;261</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;288</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="14%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">&nbsp;</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT" WIDTH="28%">Total gross square feet at end of period</TD>
<TD ALIGN="RIGHT" WIDTH="14%">2,039,380</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="13%">1,624,933</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="12%">1,393,361</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">1,285,598</TD>
<TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
<TD ALIGN="RIGHT" WIDTH="11%">1,200,816</TD>
<TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
</TR>
</TABLE>
<P>&nbsp;</P>

<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2%><FONT
FACE="Times New Roman">(1)</FONT></TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%><FONT
FACE="Times New Roman">The prior year amounts have been reclassified to
conform to the January 29, 2000 classifications.</FONT> </TD>
</TR>
</TABLE>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2%><FONT
FACE="Times New Roman">(2)</FONT></TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%><FONT
FACE="Times New Roman">The 53-week period ended February 3, 1996 includes 9
months of sales, or $21.5 million, from outlet stores sold in October
1995. It also includes 6 months of operations from the year ended July 29,
1995, representing $113.7 million of net sales, $13.7 million of operating
loss, and $8.4 million of net loss.</FONT></TD>
</TR>
</TABLE>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2%><FONT
FACE="Times New Roman">(3)</FONT></TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%><FONT
FACE="Times New Roman">Average net sales per square foot is calculated using
retail sales for the period divided by the straight average of the
beginning and ending square footage for the period.</FONT></TD>
</TR>
</TABLE>
<P></P>
<P><B><FONT
FACE="Times New Roman"></FONT></B></P>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0 HEIGHT="20">
<TR VALIGN=TOP>
<TD WIDTH=2% NOWRAP><B><FONT
FACE="Times New Roman">ITEM 7. </FONT></B></TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%><B><FONT
FACE="Times New Roman">MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION.</FONT></B></TD>
</TR>
</TABLE>
<P><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>O</B></FONT><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>verview</B></FONT></P>
<DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We achieved record sales and
earnings for the year ended January 29, 2000 ("Fiscal 1999"). Our record
sales and profitability resulted from our focus on several brand and
merchandise strategies developed to enhance our brand image and
differentiate us from our competition. During Fiscal 1999, we emphasized
these brand and merchandising strategies:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">invested in our brand
through increased marketing efforts,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">committed to key merchandise
items that are current, value-priced, intelligently-sourced and carefully
promoted to maximize sales and profitability,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">premiered a new store
design, and</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">increased our focus on AE
Direct, our internet and catalog business.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">During Fiscal 1999, we
continued to expand the non-store distribution of our merchandise by
providing commerce opportunities on our Internet web site, <I>ae.com</I>,
and through catalog promotions. We circulated five catalogs to four million
customers, an increase in distribution of 34% over the prior year. In 1999,
more customers shopped at our internet store, <I>ae.com</I> than ever
before.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We opened 80 new stores,
including 2 flagship stores, and upgraded 25 store locations during 1999. We
premiered a new store design in five locations. Our goal with this design is
to provide a store environment that is inviting and comfortable.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Additionally, we continue to
invest in our distribution infrastructure. Over the past two years, we have
invested approximately $9.5 million to upgrade our distribution center. This
investment has lowered our unit processing costs by 8% in 1998 and by an
additional 12% in 1999. Additionally, we increased our distribution and
headquarters facility by 120,000 square feet. We believe these investments
will continue to improve the efficiency for replenishment and processing of
new orders and increase the capacity of our Warrendale facility to 700
stores.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">As a result of these
initiatives, our sales for Fiscal 1999 increased to $832.1 million compared
to $587.6 million for the year ended January 30, 1999 ("the prior year"
or "Fiscal 1998"), an increase of 41.6%. Comparable store sales increased
20.9% compared to the prior year. This was achieved on top of a 32.1%
comparable store sales increase in Fiscal 1998. Our strong sales performance
was driven primarily by a 42.0% increase over last year in the number of
merchandise units sold. Additionally, gross profit increased to $356.5
million, or 42.8% of sales, for Fiscal 1999, compared to $234.5 million, or
39.9% of sales for the prior year. The increased gross profit reflected
implementation of our brand and merchandising strategies, resulting in
improved merchandise mark-ons, decreased markdowns as a percent of sales,
and improved leveraging of buying, occupancy and warehousing
costs.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Fiscal 1999's record gross
profit translated into significantly improved operating profit and net
income. Operating profit
</FONT><FONT
COLOR="#000000" FACE="'Times New Roman', Times">for Fiscal 1999 increased
71.8% to $149.5 million compared to $87.1 million in the prior year. Net
income for Fiscal 1999 was $90.7 million, or $1.86 per diluted share,
compared to $54.1 million, or $1.13 per diluted share, in the prior year.
Our strong operating performance for the year allowed us to fund working
capital requirements and capital expenditure needs entirely through cash
flow. No borrowings were required under our $100.0 million credit
facility.</FONT></P>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Our balance sheet strengthened
as a result of the record operating performance achieved in Fiscal 1999. As
of January 29, 2000, cash and cash equivalents, including short-term
investments, increased by approximately 98% to $168.5 million from $85.3
million as of January 30, 1999. Inventory was $60.4 million compared with
$49.7 million at the end of the prior year, and increased approximately 1.0%
on a per store basis. Stockholders' equity increased approximately 75% to
$264.5 million, or $5.66 per share, at the end of Fiscal 1999 compared to
$151.2 million, or $3.28 per share, at the end of the prior period. Average
return on stockholders' equity was 43.6% for Fiscal 1999, compared with
44.7% for Fiscal 1998.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Results of
Operations</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">This table shows, for the
periods indicated, the percentage relationship to net sales of the listed
items included in the Company's Consolidated Statements of
Operations.</FONT></DIV>
<DIV>&nbsp;</DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="315"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Fiscal
Years Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE>
</TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="315"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2">&nbsp;</FONT></TH>
<TH WIDTH="69"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="16"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="16"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="315" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net sales</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left"> <DIV ALIGN="left">%</DIV>
</TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="12"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></DIV>
</TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="12"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="315" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Cost of sales, including
certain buying, occupancy and warehousing expenses</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">57.2</FONT></DIV>
</TD>
<TD ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">60.1</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">66.2</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="315">&nbsp;&nbsp;</TD>
<TD WIDTH="69">&nbsp;&nbsp;</TD>
<TD WIDTH="48"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="50"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="49"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="315" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Gross profit</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">42.8</FONT></DIV>
</TD>
<TD ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">39.9</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">33.8</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="315" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Selling, general and
administrative expenses</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">23.4</FONT></DIV>
</TD>
<TD ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">23.6</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">24.3</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="315" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Depreciation and
amortization expense</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1.4</FONT></DIV>
</TD>
<TD ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1.5</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1.8</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="315">&nbsp;&nbsp;</TD>
<TD WIDTH="69">&nbsp;&nbsp;</TD>
<TD WIDTH="48"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="50"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="49"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="315" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Operating income</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">18.0</FONT></DIV>
</TD>
<TD ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">14.8</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">7.7</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="315" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Investment income (expense),
net</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">0.4</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">0.3</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="315">&nbsp;&nbsp;</TD>
<TD WIDTH="69">&nbsp;&nbsp;</TD>
<TD WIDTH="48"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="50"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="49"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="315" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Income before income
taxes</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">18.0</FONT></DIV>
</TD>
<TD ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">15.2</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">8.0</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="315" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Provision for income
taxes</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">7.1</FONT></DIV>
</TD>
<TD ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">6.0</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">3.2</FONT></DIV>
</TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="315">&nbsp;&nbsp;</TD>
<TD WIDTH="69">&nbsp;&nbsp;</TD>
<TD WIDTH="48"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="50"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="49"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="315" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD WIDTH="69">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">10.9</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></DIV>
</TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="50"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">9.2</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="12"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></DIV>
</TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"> <DIV
ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4.8</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="12"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></DIV>
</TD>
</TR>
<TR>
<TD WIDTH="315">&nbsp;&nbsp;</TD>
<TD WIDTH="69">&nbsp;&nbsp;</TD>
<TD WIDTH="48"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="50"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="49"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD WIDTH="12" ALIGN="left" VALIGN="bottom">&nbsp;&nbsp;</TD>
</TR>
</TABLE>
<DIV><FONT
SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT
SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>Comparison of
Fiscal 1999 to Fiscal 1998</B></FONT></DIV>
<P> </P>
<P></P>
<P><B><FONT
FACE="Times New Roman"></FONT></B></P>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net sales increased 41.6% to
$832.1 million from $587.6 million. The increase includes:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$118.8 million from
comparable store sales, representing a 20.9% increase over the prior year,
and</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$125.7 million from new and
noncomparable store sales, and nonstore sales.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The increase resulted
primarily from an increase of 42.0% in units sold. We operated 466 stores at
the end of Fiscal 1999, compared to 386 stores at the end of Fiscal
1998.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Gross profit increased 52.0%
to $356.5 million from $234.5 million. Gross profit as a percent of net
sales increased to 42.8% from 39.9%. The increase in gross profit as a
percent of net sales, was attributable to a 2.1% increase in merchandise
margins as well as a 0.8% improvement in buying, occupancy, and warehousing
costs. The increase in merchandise margins resulted from improved mark-ons
and a decrease in markdowns as a percent of sales. The improvement in
buying, occupancy, and warehousing costs reflects improved leveraging
achieved through comparable store sales growth.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Selling, general and
administrative expenses increased to $194.8 million from $138.8 million. As
a percent of net sales, these expenses decreased to 23.4% from 23.6%. The
$56.0 million increase includes:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$15.4 million in store
operating expenses to support new store growth,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$15.0 million in
compensation and benefit costs related to additional personnel to support
the increased sales volume and incentive programs that reward employees
for the achievement of key performance indicators,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$8.2 million for direct
mail, signage, promotional advertising, and catalog and non-store
advertising,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$7.2 million in additional
outside service costs to support the growing business, including the
non-store business,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$2.6 million related to
equipment costs, primarily leasing store registers and other hardware,
and</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$7.6 million for other
selling, general, and administrative expenses.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Depreciation and amortization
expense increased to $12.2 million from $8.6 million. As a percent of net
sales, these expenses decreased to 1.4% from 1.5%.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">For Fiscal 1999, we had
interest income of $4.4 million, which was offset by investment expense of
$4.6 million. Investment expense resulted from a valuation adjustment
related to a marketable equity security during the fourth quarter of Fiscal
1999. Interest income increased from $2.4 million as a result of higher cash
reserves available for investment. No borrowings were required under the
terms of our line of credit during the current or prior period.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Income before income taxes
increased to $149.4 million from $89.5 million. As a percent of net sales,
income before income taxes increased to 18.0% from 15.2%. The increase in
income before income taxes as a percent of sales was attributable to the
factors noted above.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Comparison of Fiscal 1998
to Fiscal 1997</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net sales increased 44.8% to
$587.6 million from $405.7 million. The increase includes:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$127.3 million from
comparable store sales, representing a 32.1% increase over the prior year,
and</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$54.6 million from new and
noncomparable store sales, and nonstore sales.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The increase resulted from an
increase of 31.6% in units sold, as well as an 8.8% increase in prices. We
operated 386 stores at the end of Fiscal 1998, compared to 332 stores at the
end of Fiscal 1997.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Gross profit increased to
$234.5 million from $137.0 million. Gross profit as a percent of net sales
increased to 39.9% from 33.8%. The increase in gross profit as a percent of
net sales, was attributable to a 3.6% increase in merchandise margins as
well as a 2.5% improvement in buying, occupancy, and warehousing costs. The
increase in merchandise margins resulted from a decrease in markdowns as a
percent of sales, and improved mark-ons. This improvement in buying,
occupancy, and warehousing costs reflects improved leveraging achieved
through comparable store sales growth.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Selling, general and
administrative expenses increased to $138.8 million from $98.5 million. As a
percent of net sales,</FONT><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
</FONT><FONT
COLOR="#000000" FACE="'Times New Roman', Times">these expenses decreased to
23.6% from 24.3%. The $40.3 million increase includes:</FONT></P>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$16.9 million in
compensation costs to support increased sales and new incentive
programs,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$9.0 million for general
services purchased, supplies, and other expenses,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$7.8 million in store
operating expenses to support new store growth,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$5.4 million for increased
promotional advertising, direct mail, catalog and Internet development
costs, and</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1.2 million related to
costs in connection with the Natco merger.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Depreciation and amortization
expense increased to $8.6 million from $7.3 million. As a percent of net
sales, these expenses decreased to 1.5% from 1.8%.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Interest income increased to
$2.4 million from $1.2 million as a result of higher cash reserves available
for investment. No borrowings were required under the terms of our line of
credit during the current or prior period.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Income before income taxes
increased to $89.5 million from $32.3 million. As a percent of net sales,
income before income taxes increased to 15.2% from 8.0%. The increase in
income before income taxes as a percent of sales was attributable to the
factors noted above.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Liquidity and Capital
Resources</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Our primary source of cash in
Fiscal 1999 was from operations. Additionally, maturity of our short-term
investments resulted in proceeds of $38.8 million. Our primary uses of cash
included $124.2 million to purchase short-term investments, $45.6 million in
capital expenditures, and $10.7 million to support inventory increases for
anticipated sales and new store growth. Working capital at year-end was
$174.1 million for Fiscal 1999, $94.8 million for Fiscal 1998, and $48.5
million for Fiscal 1997. The increase in total cash during Fiscal 1999
resulted primarily from the increase in cash provided by operating
activities.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">For Fiscal 1999, the source of
the $132.9 million of cash provided by operating activities was net income
adjusted for non-cash charges for depreciation and amortization. This cash
was used primarily for capital expenditures and to purchase short-term
investments that can be sold at any time. The remainder of the cash flow
provided by operating activities is being retained for new store growth,
store remodels, system enhancements, and other capital expenditures. We fund
merchandise purchases through operating cash flow.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">At January 29, 2000, we had an
unsecured demand lending arrangement with a bank to provide a $100.0 million
line of credit at either the lender's prime lending rate (8.50% at January
29, 2000) or a negotiated rate such as LIBOR. The facility has a limit of
$40.0 million to be used for direct borrowing. No borrowings were required
against the line during Fiscal 1999. At January 29, 2000, letters of credit
in the amount of $56.9 million were outstanding leaving a remaining
available balance on the line of $43.1 million.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Capital expenditures, net of
construction allowances, totaled $45.6 million for Fiscal 1999. These
expenditures included:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$18.8 million related to the
addition of 80 new stores,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$9.4 million for 25
remodeled locations,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$4.0 million in improvements
to our distribution center,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$2.8 million in warehousing
systems costs,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$2.2 million in improvements
to our corporate offices,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1.7 million in systems
improvements,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1.4 million in fixture and
leasehold retrofits to existing stores,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1.1 million related to
future store openings, and</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$4.2 million in other
capital expenditures.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We expect capital expenditures
for Fiscal 2000 to total approximately $118 million. We plan to open
approximately 90 stores during Fiscal 2000 at an estimated cost of $39
million. Additionally, we will select approximately 40 locations to upgrade
to our newest store design in Fiscal 2000 for an estimated cost of $17
million. In Fiscal 2000, we plan to start construction on a second
distribution facility estimated to cost approximately $45 million. This will
allow us to continue to improve replenishment and processing of new orders
and increase the capacity of our distribution facilities to
approximately 1,400 stores. Additionally, we plan to spend approximately $9
million to install new systems including both hardware and software for our
stores, corporate office, and existing distribution facility. We plan to
fund these capital expenditures primarily through available cash,
investments, and cash flow from operations. These forward-looking statements
will be influenced by our financial position, consumer spending,
availability of financing, and the number of acceptable mall store leases
that may become available.</FONT></P>
<P><FONT
FACE="Times New Roman">Our growth strategy includes the possibility of growth
through acquisitions. We periodically consider and evaluate acquisitions and
opportunities to support future growth and may undertake acquisitions in
2000. At this time we have not committed to any material future acquisition.
In the event we did pursue material future acquisitions, such actions could
require additional equity or debt financing, which we would seek to obtain
as required. There can be no assurance that we will be successful in closing
any potential acquisition transaction, or that any acquisition we undertake
will increase our profitability.</FONT></P>
<P><B><FONT
FACE="Times New Roman">Income Taxes</FONT></B></P>
<P><FONT
FACE="Times New Roman">We had deferred tax assets of $17.2 million at January
29, 2000 which resulted from financial and tax accounting differences. We
have had taxable income during each of the past three tax years and
anticipate that future taxable income will be able to recover the full
amount of the deferred tax asset. Assuming a 40% effective tax rate, we will
need to recognize pre-tax net income of $43.0 million in future periods to
recover existing deferred tax amounts. See Note 8 of the Consolidated
Financial Statements.</FONT></P>
<P><B><FONT
FACE="Times New Roman">Impact of Inflation</FONT></B></P>
<P><FONT
FACE="Times New Roman">We do not believe that the relatively modest levels of
inflation experienced in the United States in recent years have had a
significant effect on our net sales or our profitability. Substantial
increases in cost, however, could have a significant impact on our business
and the industry in the future.</FONT></P>
<P>&nbsp; </P>
<P><B><FONT
SIZE="2"></FONT><FONT
FACE="Times New Roman"></FONT></B><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Impact of Year
2000</B></FONT></P>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In prior years, we discussed
the nature and progress of our plans to become Year 2000 ready. In June
1999, we completed our correction phase which included repair and resolution
and testing and implementation of software and systems. As a result of these
efforts, we experienced no significant disruptions in mission critical
information technology and non-information technology systems and we believe
those systems successfully responded to the Year 2000 date change. The total
cost of the Year 2000 project was $2.0 million and was funded through cash
flows from operations. Of the total cost, $0.5 million relates to hardware
and software which was capitalized. The remaining costs were expensed as
incurred and include salaries, incentive compensation and third party
consulting services. We will continue to monitor our mission critical
computer applications and those of our suppliers and business partners
throughout the year 2000 to ensure that any latent Year 2000 matters that
may arise are addressed promptly.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Safe Harbor Statement,
Business Risks, and Seasonality</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">This report contains various
"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, which represent our expectations or
beliefs concerning future events, including the following:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the planned opening of
approximately 90 stores in Fiscal 2000,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the selection of
approximately 40 stores for remodeling,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the opening of an additional
distribution facility, and</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the possibility of growth
through acquisitions.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We caution that these
statements are further qualified by factors that could cause our actual
results to differ materially from those in the forward-looking statements,
including without limitation, the following:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">our ability to anticipate
and respond to changing consumer preferences and fashion trends in a
timely manner,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">decline in demand for our
merchandise,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the ability to obtain
suitable sites for new stores at acceptable costs,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the integration of new
stores into existing operations,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">customer acceptance of our
new store design,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">our ability to successfully
acquire and integrate other businesses,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the integration of our
additional distribution facility into existing operations,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the expansion of buying and
inventory capabilities,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the hiring and training of
qualified personnel,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the availability of
capital,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the effect of overall
economic conditions and consumer spending patterns,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the effect of changes in
weather patterns,</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the change in currency and
exchange rates, duties, tariffs, or quotas, and</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></DIV>
</TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">the effect of competitive
pressures from other retailers.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The impact of the above
factors, some of which are beyond our control, may cause our actual results
actually to differ materially from expected results in these statements and
other forward-looking statements we may make from time-to-time.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Historically, our operations
have been seasonal, with a significant amount of net sales and net income
occurring in the fourth fiscal quarter, reflecting increased demand during
the year-end holiday selling season and, to a lesser extent, the third
quarter, reflecting increased demand during the back-to-school selling
season. During Fiscal 1999, these periods accounted for approximately 56% of
our sales. As a result of this seasonality, any factors negatively affecting
us during the third and fourth fiscal quarters of any year, including
adverse weather or unfavorable economic conditions, could have a material
adverse effect on our financial condition and results of operations for the
entire year. Our quarterly results of operations also may fluctuate based
upon such factors as the timing of certain holiday seasons, the number and
timing of new store openings, the amount of net sales contributed by new and
existing stores, the timing and level of markdowns, store closings,
refurbishments and relocations, competitive factors, weather and general
economic conditions.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 7A.&nbsp;&nbsp;&nbsp;
&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Not applicable.</FONT></DIV>
<P>&nbsp;</P>
<P></P>
<P><B><FONT
FACE="Times New Roman">ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND
SUPPLEMENTARY DATA</FONT></B></P>
<P><B><FONT
FACE="Times New Roman">AMERICAN EAGLE OUTFITTERS, INC.</FONT></B></P>
<P><B><FONT
FACE="Times New Roman">CONSOLIDATED BALANCE SHEETS</FONT></B></P>
<P><I><FONT
FACE="Times New Roman">(Dollars in thousands)</FONT></I></P>
<P><P>
<TABLE WIDTH="690" CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom"> <P><I></I></P>
</TD>
<TH VALIGN="TOP" COLSPAN="2">&#160; <P ALIGN="CENTER"><FONT
FACE="Times New Roman" SIZE="2">January 29,
<BR>
2000</FONT> <HR NOSHADE ALIGN="center" WIDTH="96%" SIZE="1"> </TH>
<TH VALIGN="bottom" COLSPAN="2">&#160; <P ALIGN="CENTER"><FONT
FACE="Times New Roman" SIZE="2">January 30,
<BR>
1999</FONT> <HR NOSHADE ALIGN="center" WIDTH="96%" SIZE="1"> </TH>
<TH VALIGN="bottom" COLSPAN="2">&#160; <P ALIGN="CENTER"><FONT
FACE="Times New Roman" SIZE="2">January 31,
<BR>
1998</FONT> <HR NOSHADE ALIGN="center" WIDTH="96%" SIZE="1"> </TH>
</TR>
<TR>
<TD VALIGN="TOP"><B><FONT
FACE="Times New Roman">Assets</FONT></B></TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Current assets:</FONT></P>
</TD>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP">&#160; </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash
equivalents</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;76,581</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;71,940</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;48,359</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Short-term
investments</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">91,911</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">13,360</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">&#151;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Merchandise
inventory</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">60,375</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">49,688</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">36,278</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Accounts and note
receivable, including related party</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">13,471</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">8,560</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">7,647</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and
other</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">6,640</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">2,757</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">5,388</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Deferred income
taxes</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">13,584</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">8,199</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">4,801</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Total current assets</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">262,562</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">154,504</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">102,473</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Fixed assets:</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP">&#160; </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Fixtures and
equipment</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">52,158</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">36,307</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">25,842</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Leasehold
improvements</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">70,403</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">46,996</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">35,978</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">122,561</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">83,303</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">61,820</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Less: Accumulated
depreciation </FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">37,635</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">29,933</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">23,273</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">84,926</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">53,370</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">38,547</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Other assets, less accumulated amortization</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">7,140</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">3,074</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">3,775</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Total assets</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;354,628</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;210,948</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;144,795</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="2"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="2"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="2"> </TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><B><FONT
FACE="Times New Roman">Liabilities and stockholders' equity</FONT></B></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP">&#160; </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Current liabilities:</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP">&#160; </TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP">&#160; </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;30,700</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;18,551</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;24,606</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and
payroll taxes</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">21,307</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">17,739</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">9,227</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Accrued rent</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">17,755</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">13,042</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">7,909</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Accrued income and other
taxes</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">7,927</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">4,773</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">9,715</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Unredeemed stored value
cards and gift certificates</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">7,703</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">3,372</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">1,703</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities and
accrued expenses</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">3,033</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">2,274</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">827</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Total current liabilities </FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">88,425</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">59,751</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">53,987</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Commitments and contingencies </FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">&#151;</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">&#151;</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">&#151;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Total noncurrent liabilities </FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">1,702</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">&#151;</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">&#151;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Stockholders' equity</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">264,501</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">151,197</FONT></P>
</TD>
<TD VALIGN="TOP"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">90,808</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP"> <P><FONT
FACE="Times New Roman">Total liabilities and stockholders' equity</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;354,628</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;210,948</FONT></P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="TOP"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;144,795</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="2"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="2"> </TD>
<TD VALIGN="TOP">&nbsp;</TD>
<TD VALIGN="TOP"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="2"> </TD>
</TR>
</TABLE>
<P ALIGN="center"><FONT
FACE="Times New Roman">See Notes to Consolidated Financial
Statements</FONT></P>
<P ALIGN="left"><B><FONT
FACE="Times New Roman">AMERICAN EAGLE OUTFITTERS, INC.</FONT></B></P>
<P ALIGN="left"><B><FONT
FACE="Times New Roman"> CONSOLIDATED STATEMENTS OF OPERATIONS</FONT></B></P>
<P ALIGN="left"><I><FONT
FACE="Times New Roman">(In thousands, except per share amounts)</FONT></I></P>

<TABLE WIDTH="690" CELLPADDING="0" CELLSPACING="0" BORDER="0" ALIGN="center">
<TR>
<TD WIDTH="348"></TD>
<TD WIDTH="18"></TD>
<TD WIDTH="85"></TD>
<TD WIDTH="18"></TD>
<TD WIDTH="85"></TD>
<TD WIDTH="18"></TD>
<TD WIDTH="86"></TD>
</TR>
<TR>
<TD COLSPAN="7" VALIGN="TOP"> <P><I></I></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&#160; </TD>
<TH COLSPAN="6" VALIGN="bottom"> <P ALIGN="CENTER"><FONT
FACE="Times New Roman" SIZE="2">For the Years Ended</FONT> <HR NOSHADE
ALIGN="right" WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&#160; </TD>
<TH VALIGN="bottom" WIDTH="103" COLSPAN="2">&#160; <FONT
FACE="Times New Roman" SIZE="2">January 29,
<BR>
</FONT><FONT
FACE="Times New Roman" SIZE="2">2000</FONT> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TH>
<TH VALIGN="bottom" WIDTH="103" COLSPAN="2"> <P ALIGN="CENTER"><FONT
FACE="Times New Roman" SIZE="2">January 30,
<BR>
</FONT><FONT
FACE="Times New Roman" SIZE="2">1999</FONT> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TH>
<TH VALIGN="bottom" WIDTH="104" COLSPAN="2"> <P><FONT
FACE="Times New Roman" SIZE="2">January 31,
<BR>
</FONT><FONT
FACE="Times New Roman" SIZE="2">1998</FONT> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Net sales</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;832,104</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160;</DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman"> <FONT
FACE="Times New Roman">$&nbsp;</FONT>587,600</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160;</DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman"> <FONT
FACE="Times New Roman">$</FONT>&nbsp;405,713</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348" NOWRAP> <P><FONT
FACE="Times New Roman">Cost of sales, including certain buying, occupancy
and warehousing expenses</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">475,596</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">353,089</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">268,746</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="top" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="86"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Gross profit</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">356,508</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">234,511</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">136,967</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Selling, general and administrative expenses<B>
</B></FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">194,795</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">138,847</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">98,529</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Depreciation and amortization<B>
</B>expense</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">12,199</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">8,611</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">7,318</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="top" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="86"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Operating income<B> </B></FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">149,514</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">87,053</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">31,120</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Investment income (expense), net<B> </B></FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">(160</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <FONT
FACE="Times New Roman">)</FONT> </TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">2,436</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">1,158</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="top" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="86"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Income before income taxes</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">149,354</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">89,489</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">32,278</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Provision for income taxes</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">58,694</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">35,371</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">12,741</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="top" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="86"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Net income </FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;90,660</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;54,118</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;19,537</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="top" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="86"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Basic earnings per common share</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.96</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160;</DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman"> <FONT
FACE="Times New Roman">$</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;1.20</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160;</DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman"> <FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</FONT>0.44</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="top" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="86"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Diluted earnings per common share</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160;</DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman"> <FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</FONT>1.86</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.43</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="top" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="86"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Weighted average common shares outstanding -
basic</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">46,370</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">45,281</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">44,181</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="top" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="86"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348"> <P><FONT
FACE="Times New Roman">Weighted average common shares outstanding -
diluted</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">48,742</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="85"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">47,952</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="86"> <P ALIGN="RIGHT"><FONT
FACE="Times New Roman">45,633</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="348">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="bottom" WIDTH="12" ALIGN="left"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="85"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
<TD VALIGN="top" WIDTH="18"> <DIV ALIGN="right"></DIV>
</TD>
<TD VALIGN="top" WIDTH="86"> <HR NOSHADE ALIGN="center" WIDTH="100%"
SIZE="2"> </TD>
</TR>
</TABLE>
<P ALIGN="center"><FONT
FACE="Times New Roman">See Notes to Consolidated Financial
Statements</FONT></P>
<P>&nbsp; </P>
<P><FONT
SIZE="2"></FONT> </P>
<P ALIGN="left"><B><FONT
FACE="Times New Roman">AMERICAN EAGLE OUTFITTERS, INC.</FONT></B> </P>
<P ALIGN="left"><B><FONT
FACE="Times New Roman">CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITY</FONT></B> </P>
<P ALIGN="left"><B><I><FONT
FACE="Times New Roman">For the years ended January 29, 2000, January 30, 1999,
and January 31, 1998</FONT></I></B> </P>
<P ALIGN="left"><I><FONT
FACE="Times New Roman">(In thousands)</FONT></I></P>
<P ALIGN="left"> </P>
<TABLE ALIGN="center" WIDTH="690" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT
SIZE="1">&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Shares
<BR>
(1)</B></FONT><FONT
SIZE="2"> </FONT><FONT
SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH VALIGN="bottom"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Common
<BR>
Stock</B></FONT><FONT
SIZE="2"> </FONT><FONT
SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH VALIGN="bottom"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Contributed
<BR>
Capital</B></FONT><FONT
SIZE="2"> </FONT><FONT
SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH VALIGN="bottom"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Retained
<BR>
Earnings</B></FONT><FONT
SIZE="2"> </FONT><FONT
SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH VALIGN="bottom"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Treasury
<BR>
Stock</B></FONT><FONT
SIZE="2"> </FONT><FONT
SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH VALIGN="bottom"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Deferred
<BR>
Compensation
<BR>
Expense</B></FONT><FONT
SIZE="2"> </FONT><FONT
SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH VALIGN="bottom"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Other
<BR>
Comprehensive
<BR>
Loss</B></FONT><FONT
SIZE="2"> </FONT><FONT
SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH VALIGN="bottom"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Stockholders'
<BR>
Equity</B></FONT><FONT
SIZE="2"> </FONT><FONT
SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Balance at February
1, 1997</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,918</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;99</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$58,299</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;17,119</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$(1,625</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$(2,836</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;71,056</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income and
comprehensive income</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">19,537</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">19,537</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Exercise of stock
options</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">115</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">973</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">974</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Tax benefit
realized on exercised stock options and vested restricted stock</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">277</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">277</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Investment in
Prophecy, Ltd.</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,350</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(900</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD HEIGHT="14"><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2,250</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" HEIGHT="14"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Restricted stock
and stock option compensation</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">370</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">844</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,214</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Three-for-two stock
split-Jan. 5, 1998</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,978</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">50</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(50</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Balance at January
31, 1998</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15,011</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">150</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">58,519</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">35,756</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,625</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,992</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">90,808</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income and
comprehensive income</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">54,118</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">54,118</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Exercise of stock
options</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">426</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,776</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,780</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Tax benefit
realized on exercised stock options and vested restricted stock</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,255</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,255</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Restricted stock
and stock option compensation</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,336</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,336</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Restricted stock
grant</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">64</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,417</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">345</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,763</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Merger costs
incurred by Natco</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">900</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">900</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Three-for-two stock
split-May 8, 1998</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,554</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">76</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(76</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Two-for-one stock
split-May 3, 1999</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23,055</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">230</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(230</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
</TR>
<TR>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Balance at January
30, 1999</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">46,110</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">461</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">64,561</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">89,874</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,280</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2,419</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">151,197</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Exercise of stock
options</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">630</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,670</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> 2,676</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Tax benefit
realized on exercised stock options and vested restricted stock</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16,445</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16,445</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Restricted stock
and stock option grant</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,794</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(6,794</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Restricted stock
and stock option compensation</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,809</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,809</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Retirement of
treasury stock</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,280)</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,280</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Comprehensive
income:</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT
SIZE="2"></FONT></TD>
<TD><FONT
SIZE="2"></FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;Net
income</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">90,660</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">90,660</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;
&nbsp;Unrealized loss on &nbsp;&nbsp;&nbsp;&nbsp;investments, net of
tax</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2,286</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2,286</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Total comprehensive
income</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">88,374</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=23><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" WIDTH="143" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Balance at January
29, 2000</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">46,740</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$467</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$89,190</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$180,534</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&#151;-</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$(3,404</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$(2,286</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$264,501</FONT></TD>
<TD><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD><FONT
SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT
SIZE="2">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<P><P>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2%><B><I><FONT
FACE="Times New Roman" SIZE="2">(1)</FONT></I></B></TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%><B><I><FONT
FACE="Times New Roman" SIZE="2">125 million authorized, 47 million , 46
million, and 45 million issued and outstanding, $.01 par value common
stock at January 29, 2000, January 30, 1999, and January 31, 1998,
respectively. The Company has 5 million authorized with none issued or
outstanding $.01 par value preferred stock at January 29,
2000.</FONT></I></B></TD>
</TR>
</TABLE>
<P ALIGN="center"><FONT
FACE="Times New Roman">See Notes to Consolidated Financial Statements</FONT>
</P>
<P>
<A NAME="TopOfPage"> </A>
<FONT
SIZE="2"></FONT></P>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>AMERICAN EAGLE OUTFITTERS,
INC.</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>CONSOLIDATED STATEMENTS OF
CASH FLOWS</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"> <P><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>(In
thousands)</B></FONT></P>
<P></P>
</DIV>
<TABLE ALIGN="center" WIDTH="690" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="411"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="411"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="19"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="18"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Operating
activities:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 90,660</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 54,118</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 19,537</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Adjustments to reconcile net
income to net cash provided by operating activities:</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="67"></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"></TD>
<TD WIDTH="9"></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Depreciation and amortization</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">12,199</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">8,611</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">7,318</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Loss on impairment and write-off of fixed assets</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,907</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,467</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,292</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Restricted stock compensation</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">5,809</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,336</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,214</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Deferred income taxes</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(7,214</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(2,753</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(496</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Investment expense</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4,554</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Merger costs incurred by Natco</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">900</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"></TD>
<TD WIDTH="9"></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Changes in assets and
liabilities:</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="67"></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"></TD>
<TD WIDTH="9"></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Merchandise inventory</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(10,687</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(13,410</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(8,903</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Receivables</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(4,911</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(913</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(2,611</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Prepaid and other</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(6,205</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,445</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(1,578</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Receivables from officers</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">376</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">12,121</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(5,400</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(1,657</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Unredeemed stored value cards and gift certificates</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4,331</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,669</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(286</FONT></TD>
<TD WIDTH="9" ALIGN="left" VALIGN="bottom"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Accrued liabilities</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">30,348</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">11,751</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">10,962</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="19">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="67"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="9">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">42,252</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">5,703</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">6,631</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="19">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="67"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="9">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net cash provided by
operating activities</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">132,912</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">59,821</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">26,168</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left" HEIGHT="18">&nbsp;</TD>
<TD WIDTH="18" HEIGHT="18">&nbsp;</TD>
<TD VALIGN="top" ALIGN="right" WIDTH="68" HEIGHT="18"> <HR NOSHADE
ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5" HEIGHT="18"></TD>
<TD WIDTH="19" HEIGHT="18">&nbsp;</TD>
<TD VALIGN="top" ALIGN="right" WIDTH="67" HEIGHT="18"> <HR NOSHADE
ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5" HEIGHT="18"></TD>
<TD WIDTH="18" HEIGHT="18">&nbsp;</TD>
<TD VALIGN="top" ALIGN="right" WIDTH="68" HEIGHT="18"> <HR NOSHADE
ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="9" HEIGHT="18"></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Investing
activities:</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="67"></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"></TD>
<TD WIDTH="9"></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Capital
expenditures</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(45,556</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(24,913</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(12,592</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Purchase of short-term
investments</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(124,166</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(54,559</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Sale of short-term
investments</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">38,775</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">41,199</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Investment in Prophecy,
Ltd.</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(900</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE
ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5">&nbsp;</TD>
<TD WIDTH="19">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"> <HR NOSHADE
ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE
ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net cash used for investing
activities</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(130,947</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(38,273</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(13,492</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5"></TD>
<TD WIDTH="19">&nbsp;</TD>
<TD VALIGN="top" ALIGN="right" WIDTH="67"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5"></TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="9"></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Financing
activities:</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="67"></TD>
<TD WIDTH="5"></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="68"></TD>
<TD WIDTH="9"></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net proceeds from stock
options exercised </FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,676</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,033</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,357</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="19">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="67"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="9">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net cash provided by
financing activities</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,676</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,033</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,357</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="19">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="67"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="9">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net increase in cash and
cash equivalents</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4,641</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">23,581</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">14,033</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Cash and cash equivalents
&#151;beginning of period </FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">71,940</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">48,359</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">34,326</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="19">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="67"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="1"> </TD>
<TD WIDTH="9">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Cash and cash equivalents
&#151;end of period</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$76,581</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="67"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$71,940</FONT></TD>
<TD WIDTH="5"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="18">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="68"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$48,359</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" ALIGN="left">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="2"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="19">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="67"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="2"> </TD>
<TD WIDTH="5">&nbsp;</TD>
<TD WIDTH="18">&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" WIDTH="68"> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="2"> </TD>
<TD WIDTH="9">&nbsp;</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">See Notes to Consolidated
Financial Statements</FONT></DIV>
<P></P>
<DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"> <B>AMERICAN EAGLE OUTFITTERS,
INC.</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS</B></FONT></DIV>
<DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>YEAR ENDED JANUARY 29,
2000</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>1.&nbsp;&nbsp;&nbsp;
&nbsp;Business Operations and Basis of Presentation</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">American Eagle Outfitters,
Inc. (the "Company") is a specialty retailer of all-American casual apparel,
accessories, and footwear for men and women between the ages of 16 and 34.
The Company designs, markets, and sells its own brand of versatile, relaxed,
and timeless classics like AE dungarees, khakis, and T-shirts, providing
high quality merchandise at affordable prices. The Company operates retail
stores located primarily in regional enclosed shopping malls principally in
the Midwest, Northeast, and Southeast. The Consolidated Financial Statements
include the accounts of the Company and its wholly-owned operating, royalty,
investment, sourcing, and Mexican distribution subsidiaries. All
inter-company transactions have been eliminated.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The following table sets forth
the approximate percentage of net sales attributable to each merchandise
group for each of the periods indicated:</FONT></DIV>
<DIV>&nbsp;</DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Mens apparel</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">39</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">40</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">41</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Womens apparel</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">53</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">52</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">50</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Footwear and accessories
&#151;men's and women's</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" COLSPAN="2"> <HR ALIGN="center"
WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" COLSPAN="2"> <HR ALIGN="center"
WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" COLSPAN="2"> <HR ALIGN="center"
WIDTH="100%" SIZE="1" NOSHADE> </TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" COLSPAN="2"> <HR ALIGN="center"
WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" COLSPAN="2"> <HR ALIGN="center"
WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;</TD>
<TD VALIGN="top" NOWRAP ALIGN="right" COLSPAN="2"> <HR ALIGN="center"
WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Effective May 4, 1997, the
Company acquired the operations of Prophecy, Ltd. partnership ("Prophecy"),
a New York-based production and sourcing company. Prior to the acquisition,
the majority partner of Prophecy was a related party. The goals of the
acquisition were to leverage the talent and expense of the Company's New
York design office and to use Prophecy's production and sourcing expertise
and manufacturing relationships to shorten product delivery cycles and
enable the Company to improve product quality and value. The terms of the
acquisition included a cash payment of $0.9 million at closing as well as
the assumption of net liabilities of approximately $2.7 million. The
acquisition was accounted for as a purchase; however, the assets acquired
and the liabilities assumed have been recorded at historic carrying value
because Prophecy was under common control with the Company. The premium in
excess of Prophecy's book value was recorded as a reduction to equity. The
results of operations of Prophecy are included in the accompanying
Consolidated Financial Statements from the date of acquisition.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In Fiscal 1999, the Company
formed Eagle Trading Company, a Mexican distribution subsidiary with
operations near Mexico City, Mexico.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>2.&nbsp;&nbsp;&nbsp;
&nbsp;Summary of Significant Accounting Policies</B></FONT></DIV>
<DIV ALIGN="left"> <P></P>
<P><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Fiscal Year</I></FONT></P>
<DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The Company's financial year
is a 52/53 week year that ends on the Saturday nearest to January 31. For
tax purposes, the Company reports on a July year-end. As used herein,
"Fiscal 1999," "Fiscal 1998" and "Fiscal 1997" refer to the twelve month
periods ended January 29, 2000, January 30, 1999, and January 31, 1998,
respectively.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Estimates</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The preparation of financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. On an ongoing basis,
management reviews its estimates based on currently available information.
Changes in facts and circumstances may result in revised
estimates.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Recent Financial Accounting
Standards Board Pronouncements</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">FASB 133,<I> Accounting for
Derivative Instruments and Hedging Activities</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In 1998, the FASB issued
Statement of Financial Accounting Standards No. 133, "Accounting for
Derivative Instruments and Hedging Activities," which establishes standards
for the recognition and measurement of derivatives and hedging activities.
This standard is effective for Fiscal 2000. The Company does not currently
engage in these types of risk management or investment activities. Based
upon current business practices, this statement is not anticipated to have
any impact on the Company's financial statements.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Cash and Cash
Equivalents</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Cash includes cash
equivalents. The Company considers all highly liquid investments purchased
with a maturity of three months or less to be cash equivalents.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Short-term investments and
Other Comprehensive Loss</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Cash in excess of operating
requirements is invested in marketable equity or government debt
obligations. As of January 29, 2000, short-term investments included
investments with an original maturity of greater than three months
(averaging approximately 10 months) and consisted primarily of tax-exempt
municipal bonds classified as available for sale and marketable equity
securities. During the fourth quarter of Fiscal 1999, the Company recognized
expense of $4.6 million related to a valuation adjustment of a marketable
equity. This charge is included in investment income (expense) in the
Consolidated Statements of Operations.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Merchandise
Inventory</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Merchandise inventory is
valued at the lower of average cost or market, utilizing the retail method.
Average cost includes merchandise design and sourcing costs and related
expenses.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The Company reviews its
inventory levels in order to identify slow-moving merchandise and generally
uses markdowns to clear merchandise. Markdowns may occur when inventory
exceeds customer demand for reasons of style, seasonal adaptation, changes
in customer preference, lack of consumer acceptance of fashion items,
competition, or if it is determined that the inventory in stock will not
sell at its currently ticketed price. Such markdowns may have an adverse
impact on earnings, depending on the extent and amount of inventory
affected.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Fixed
Assets</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Fixed assets are recorded on
the basis of cost with depreciation computed utilizing the straight-line
method over the estimated useful lives. Estimated useful lives range from
three to ten years. Depreciation expense is summarized as
follows:</FONT></DIV>
<P>&nbsp; </P>
<P><FONT
FACE="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<B>(Dollars in thousands)</B></FONT></P>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Depreciation
expense</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 11,782</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 8,215</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 6,943</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
</TABLE>
<P><FONT
FACE="Times New Roman">In accordance with FASB Statement No. 121,
&quot;Accounting for the Impairment of Long-Lived Assets and for Long-lived
Assets to Be Disposed Of,&quot; impairment losses are recorded on long-lived
assets used in operations when events and circumstances indicate that the
assets might be impaired and the undiscounted cash flows estimated to be
generated by those assets are less than the carrying amounts of those
assets. </FONT><P ALIGN="left"><FONT
FACE="Times New Roman"><I>Intangible assets</I></FONT></P>
<P><FONT
FACE="Times New Roman">Intangible assets consist primarily of lease buyout
costs and trademark costs. The lease buyout costs are amortized over the
remaining life of the leases, generally for no greater than ten years. The
trademark costs are amortized over five years. These assets, net of
amortization, are included in other assets (long-term) on the Consolidated
Balance Sheets. Details of intangible assets follow: </FONT></P>
<P><FONT
FACE="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<B>&nbsp;(Dollars in thousands)</B></FONT></P>
<TABLE WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="362"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="20">&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="362"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="20">&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="16"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="16"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="362" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Intangible assets</FONT></TD>
<TD WIDTH="20">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="56"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;3,899</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="55"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1,472</FONT></TD>
<TD WIDTH="10"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="54"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1,016</FONT></TD>
<TD WIDTH="14"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="362" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Less: accumulated
amortization</FONT></TD>
<TD WIDTH="20">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="56"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(1,164</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="55"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(614</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="10"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="54"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(83</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="14"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD WIDTH="362">&nbsp;&nbsp;</TD>
<TD WIDTH="20">&nbsp;&nbsp;</TD>
<TD WIDTH="56"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="9">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="55"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="10">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="54"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="14">&nbsp;&nbsp;</TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="362" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net intangible
assets</FONT></TD>
<TD WIDTH="20">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="56"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 2,735</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="55"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 858</FONT></TD>
<TD WIDTH="10"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="54"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 933</FONT></TD>
<TD WIDTH="14"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="362">&nbsp;&nbsp;</TD>
<TD WIDTH="20">&nbsp;&nbsp;</TD>
<TD VALIGN="top" WIDTH="56"> <HR ALIGN="right" WIDTH="100%" SIZE="2"
NOSHADE> </TD>
<TD WIDTH="9" VALIGN="top">&nbsp;&nbsp;</TD>
<TD WIDTH="16" VALIGN="top">&nbsp;&nbsp;</TD>
<TD WIDTH="55" VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="2"
NOSHADE> </TD>
<TD WIDTH="10" VALIGN="top">&nbsp;&nbsp;</TD>
<TD WIDTH="16" VALIGN="top">&nbsp;&nbsp;</TD>
<TD WIDTH="54" VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="2"
NOSHADE> </TD>
<TD WIDTH="14">&nbsp;&nbsp;</TD>
</TR>
</TABLE>
<P><P><FONT
FACE="Times New Roman">Amortization expense related to these intangibles is
summarized as follows:</FONT></P>
<P><FONT
FACE="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<B>&nbsp;(Dollars in thousands)</B></FONT></P>
<P>
<TABLE WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Amortization
expense</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 417</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 396</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 375</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
</TABLE>
<P><I><FONT
FACE="Times New Roman">Stock Option Plan</FONT></I></P>
<P><FONT
FACE="Times New Roman">In October 1995, the FASB issued Statement No. 123,
&quot;Accounting for Stock-Based Compensation,&quot; which establishes
financial accounting and reporting standards for stock-based employee
compensation plans. The Company continues to account for its stock-based
employee compensation plan using the intrinsic value method under Accounting
Principles Board Opinion No. 25. See pro forma disclosures required under
FASB Statement No. 123 in Note 10 of the Consolidated Financial
Statements.</FONT></P>
<P><I><FONT
FACE="Times New Roman">Revenue Recognition</FONT></I></P>
<P><FONT
FACE="Times New Roman">Revenue is recorded upon purchase of merchandise by
customers. In connection with stored value cards and gift certificates, a
deferred revenue amount is established upon purchase of the card by the
customer and revenue is recognized upon redemption and purchase of the
merchandise.</FONT></P>
<P></P>
<P></P>
<P><I><FONT
FACE="Times New Roman">Advertising Costs </FONT></I></P>
<P><FONT
FACE="Times New Roman">Advertising costs are expensed as incurred. Advertising
expense is summarized as follows: </FONT></P>
<P><FONT
FACE="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<B>&nbsp;(Dollars in thousands)</B></FONT></P>
<TABLE WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Advertising
expense</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 27,243</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 16,431</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 10,067</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
</TABLE>
<P><I><FONT
FACE="Times New Roman">Supplemental Disclosures of Cash Flow
Information</FONT></I></P>
<P><FONT
FACE="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<B>(Dollars in thousands)</B></FONT></P>
<TABLE CELLSPACING=0 CELLPADDING=0 WIDTH="650">
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January 29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January 30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January 31
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Cash paid during the periods
for:</FONT></TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Income taxes</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$45,741</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$41,706</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$9,675</FONT></TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Interest</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; &#151;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; &#151;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&#151;</FONT></TD>
</TR>
</TABLE>
<P><B><I><FONT
FACE="Times New Roman">Earnings Per Share </FONT></I></B></P>
<P><FONT
FACE="Times New Roman">The following table shows the amounts used in computing
earnings per share and the effect on income and the weighted average number
of shares of dilutive potential common stock (stock options and restricted
stock).</FONT></P>
<P><FONT
FACE="Times New Roman"><B>(In thousands)</B></FONT> </P>
<TABLE WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"></FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 90,660</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 54,118</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 19,537</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Weighted average common
shares outstanding:</FONT></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Basic shares</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">46,370</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">45,281</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">44,181</FONT></TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Dilutive effect of stock
options and non-vested restricted stock</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,372</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,671</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,452</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Diluted shares</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">48,742</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">47,952</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">45,633</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
</TABLE>
<P><B><I><FONT
FACE="Times New Roman">Reclassification</FONT></I></B></P>
<P><FONT
FACE="Times New Roman">Certain reclassifications have been made to the
Consolidated Financial Statements for prior periods in order to conform to
the Fiscal 1999 presentation.</FONT></P>
<P></P>
<P><B><FONT
FACE="Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;Related Party
Transactions</FONT></B></P>
<P><FONT
FACE="Times New Roman">The Company has various transactions with related
parties. The nature of the relationship with each party is primarily common
ownership. In September 1999, our distribution center facility, which is
owned by a related party, was expanded to add 120,000 square feet which
increases our capacity to handle distribution needs for future growth. As a
result, the Company entered into an amended and restated operating lease for
its corporate headquarters and distribution center with a related party. The
lease, which commenced on September 1, 1999, and expires on December 31,
2020 provides for annual rental payments of approximately $2.0 million
through 2000, $2.4 million through 2005, $2.6 million through 2015, and $2.7
million through the end of the lease.</FONT></P>
<P><FONT
FACE="Times New Roman">In addition, the Company and its subsidiaries sell
merchandise to various related parties and use the services of a related
importing company (See Note 12 of the Consolidated Financial
Statements).</FONT></P>
<P><FONT
FACE="Times New Roman">The Company purchases merchandise from Azteca
Production International (&quot;Azteca&quot;), a third party vendor, who
because of significant beneficial ownership, was considered a related party
in Fiscal 1997. Since Fiscal 1997, the beneficial ownership has been reduced
and these purchases are not considered related party transactions. In Fiscal
1997, the Company purchased $31.5 million in merchandise from Azteca. As of
January 31, 1998, accounts payable due Azteca was $1.9 million. These
amounts are excluded from the table below.</FONT></P>
<P><FONT
FACE="Times New Roman">Related party amounts follow:</FONT></P>
<P><FONT
FACE="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<B>(Dollars in thousands)</B></FONT></P>
<P>
<TABLE WIDTH="690" CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TD WIDTH="418"></TD>
<TD WIDTH="19"></TD>
<TD WIDTH="57"></TD>
<TD WIDTH="17"></TD>
<TD WIDTH="65"></TD>
<TD WIDTH="8"></TD>
<TD WIDTH="8"></TD>
<TD WIDTH="74"></TD>
</TR>
<TR>
<TH VALIGN="TOP" WIDTH="418">&#160; </TH>
<TH COLSPAN="7" VALIGN="TOP"> <P ALIGN="CENTER"><FONT
FACE="Times New Roman" SIZE="2">For the Years Ended</FONT> <HR NOSHADE
ALIGN="center" WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TH VALIGN="TOP" WIDTH="418">&#160; </TH>
<TH VALIGN="TOP" COLSPAN="2"> <P ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">January 29, </FONT><FONT
FACE="Times New Roman" SIZE="2">2000</FONT> <HR NOSHADE ALIGN="center"
WIDTH="96%" SIZE="1"> </TH>
<TH VALIGN="TOP" COLSPAN="2"> <P ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">January 30, </FONT><FONT
FACE="Times New Roman" SIZE="2">1999</FONT> <HR NOSHADE ALIGN="center"
WIDTH="96%" SIZE="1"> </TH>
<TH VALIGN="TOP" COLSPAN="3"> <P ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">January 31, </FONT><FONT
FACE="Times New Roman" SIZE="2">1998</FONT> <HR NOSHADE ALIGN="center"
WIDTH="96%" SIZE="1"> </TH>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="418"> <P><FONT
FACE="Times New Roman">Merchandise purchases through a related party
importer</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="19"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="57"> <P ALIGN="right"><FONT
FACE="Times New Roman">63,763</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="17"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="65"> <P ALIGN="right"><FONT
FACE="Times New Roman">46,885</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="8">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="8"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="74"> <P ALIGN="right"><FONT
FACE="Times New Roman">33,661</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="418"> <P><FONT
FACE="Times New Roman">Accounts payable</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="19"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="57"> <P ALIGN="right"><FONT
FACE="Times New Roman">682</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="17"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="65"> <P ALIGN="right"><FONT
FACE="Times New Roman"> &#151</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="8">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="8"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="74"> <P ALIGN="right"><FONT
FACE="Times New Roman">5,914</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="418"> <P><FONT
FACE="Times New Roman">Accounts receivable</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="19"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="57"> <P ALIGN="right"><FONT
FACE="Times New Roman">2,436</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="17"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="65"> <P ALIGN="right"><FONT
FACE="Times New Roman">2,829</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="8">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="8"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="74"> <P ALIGN="right"><FONT
FACE="Times New Roman">1,865</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="418"> <P><FONT
FACE="Times New Roman">Rent expense</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="19"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="57"> <P ALIGN="right"><FONT
FACE="Times New Roman">1,896</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="17"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="65"> <P ALIGN="right"><FONT
FACE="Times New Roman">1,548</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="8">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="8"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="74"> <P ALIGN="right"><FONT
FACE="Times New Roman">1,549</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="418"> <P><FONT
FACE="Times New Roman">Merchandise sales</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="19"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="57"> <P ALIGN="right"><FONT
FACE="Times New Roman">7,388</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="17"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="65"> <P ALIGN="right"><FONT
FACE="Times New Roman">3,289</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="8">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="8"> <DIV ALIGN="right"><FONT
FACE="Times New Roman">$</FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="74"> <P ALIGN="right"><FONT
FACE="Times New Roman">8,669</FONT></P>
</TD>
</TR>
</TABLE>
<P><B><FONT
FACE="Times New Roman">4.&nbsp;&nbsp;&nbsp;&nbsp;Accounts
Receivable</FONT></B></P>
<P><FONT
FACE="Times New Roman">Accounts receivable is comprised of the
following:</FONT></P>
<P><FONT
FACE="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<B>(Dollars in thousands)</B></FONT></P>
<P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TH VALIGN="TOP" WIDTH="288"> <P>&nbsp;</P>
</TH>
<TH VALIGN="TOP" WIDTH="18">&#160; </TH>
<TH VALIGN="TOP" WIDTH="84"> <P ALIGN="CENTER"><FONT
FACE="Times New Roman" SIZE="2">January 29, </FONT><FONT
FACE="Times New Roman" SIZE="2">2000</FONT> <HR NOSHADE ALIGN="center"
WIDTH="100%" SIZE="1"> </TH>
<TH VALIGN="TOP" WIDTH="18">&#160; </TH>
<TH VALIGN="TOP" WIDTH="84"> <P ALIGN="CENTER"><FONT
FACE="Times New Roman" SIZE="2"> January 30, </FONT><FONT
FACE="Times New Roman" SIZE="2">1999</FONT> <HR NOSHADE ALIGN="center"
WIDTH="100%" SIZE="1"> </TH>
<TH VALIGN="TOP" WIDTH="24">&nbsp;</TH>
<TH VALIGN="TOP" WIDTH="90"> <P ALIGN="CENTER"><FONT
FACE="Times New Roman" SIZE="2">January 31, </FONT><FONT
FACE="Times New Roman" SIZE="2">1998</FONT> <HR NOSHADE ALIGN="center"
WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="288" HEIGHT="18"> <P><FONT
FACE="Times New Roman">Accounts receivable&#151construction
allowances</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18" HEIGHT="18"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="bottom" WIDTH="84" HEIGHT="18"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,846</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18" HEIGHT="18"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="bottom" WIDTH="84" HEIGHT="18"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;4,008</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="24" HEIGHT="18"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="bottom" WIDTH="90" HEIGHT="18"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;&nbsp;1,518</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="288"> <P><FONT
FACE="Times New Roman">Related party accounts receivable</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="84"> <P ALIGN="right"><FONT
FACE="Times New Roman">2,436</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="84"> <P ALIGN="right"><FONT
FACE="Times New Roman">2,829</FONT></P>
</TD>
<TD VALIGN="bottom" WIDTH="24"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="90"> <P ALIGN="right"><FONT
FACE="Times New Roman">1,865</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="288"> <P><FONT
FACE="Times New Roman">Accounts and note receivable&#151other</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="84"> <P ALIGN="right"><FONT
FACE="Times New Roman">7,189</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="bottom" WIDTH="18"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="84"> <P ALIGN="right"><FONT
FACE="Times New Roman">1,723</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
<TD VALIGN="bottom" WIDTH="24"> <DIV ALIGN="right">&#160; </DIV>
</TD>
<TD VALIGN="bottom" WIDTH="90"> <P ALIGN="right"><FONT
FACE="Times New Roman">4,264</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%"
SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH="288"> <P><FONT
FACE="Times New Roman">Total</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH="18"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="bottom" WIDTH="84"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;13,471</FONT> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="2"> </TD>
<TD VALIGN="bottom" WIDTH="18"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="bottom" WIDTH="84"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;8,560</FONT> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="2"> </TD>
<TD VALIGN="bottom" WIDTH="24"> <P ALIGN="right">&nbsp;</P>
</TD>
<TD VALIGN="bottom" WIDTH="90"> <P ALIGN="right"><FONT
FACE="Times New Roman">$&nbsp;&nbsp;7,647</FONT> <HR NOSHADE ALIGN="right"
WIDTH="100%" SIZE="2"> </TD>
</TR>
</TABLE>
<P><B><FONT
FACE="Times New Roman">5.&nbsp;&nbsp;&nbsp;&nbsp;Notes Payable</FONT></B></P>
<P><FONT
FACE="Times New Roman">The Company has an unsecured demand lending arrangement
with a bank to provide a $100 million line of credit at either the lender's
prime lending rate (8.50% at January 29, 2000) or a negotiated rate such as
LIBOR. Because there were no borrowings during any of the past three years,
there were no amounts paid for interest. The facility has a limit of $40
million to be used for direct borrowing. At January 29, 2000, letters of
credit in the amount of $56.9 million were outstanding leaving a remaining
available balance on the line of $43.1 million.</FONT></P>
<P>&nbsp; </P>
<P>
<A NAME="TopOfPage"> </A>
<FONT
SIZE="2"></FONT> </P>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>6.&nbsp;&nbsp;&nbsp;
&nbsp;Impairment of Assets</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In accordance with FASB No.
121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of," management evaluates the ongoing value
of leasehold improvements and store fixtures associated with retail stores
which have been open longer than one year. There was no impairment expense
recorded in Fiscal 1999. The expense included in selling, general and
administrative expenses for Fiscal 1998 and Fiscal 1997 was $0.2 million and
$1.7 million, respectively.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>7.&nbsp;&nbsp;&nbsp;
&nbsp;Lease Commitments</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">All store operations are
conducted from leased premises. These leases generally provide for base
rentals and the payment of a percentage of sales as additional rent when
sales exceed specified levels. Minimum rentals relating to these leases are
recorded on a straight-line basis. In addition, the Company is typically
responsible under its leases for common area maintenance charges, real
estate taxes and certain other expenses. These leases are classified as
operating leases.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Rent expense charged to
operations, including amounts paid under short-term cancelable leases, was
as follows:</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>(Dollars in
thousands)</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Minimum rentals</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;66,437</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;53,482</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;47,421</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Contingent
rentals</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">10,736</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">6,177</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,725</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Total</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 77,173</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 59,659</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 49,146</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The table below summarizes
future minimum lease obligations under operating leases in effect at January
29, 2000:</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>(In
thousands)</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE ALIGN="center" WIDTH="400" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Fiscal years:</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B><FONT
SIZE="2">Future
<BR>
Minimum
<BR>
Lease
<BR>
Obligations</FONT></B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1"
NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="548" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;54,483</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="548" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">51,083</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="548" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2002</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">48,851</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="548" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2003</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">48,058</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="548" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2004</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">43,238</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="548" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Thereafter</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">157,602</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="548" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Total</FONT></TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$403,315</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="left" WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The Company may be
contingently liable for the remaining rental payments that could total as
much as $7.8 million for the outlet stores which were sold in October 1995.
In January 2000, the company which owns the outlet stores sought protection
under Chapter 11 of the Bankruptcy Act. Currently, there is insufficient
information available to determine the amount of loss the Company may incur,
if any, related to this potential contingent liability.</FONT></DIV>
<P> </P>
<DIV ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> </FONT></DIV>
<DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>8.&nbsp;&nbsp;&nbsp;
&nbsp;Income Taxes</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The significant components of
the Company's deferred tax assets (there are no deferred tax liabilities)
were as follows:</FONT></DIV>
<DIV> <P>&nbsp;</P>
<P><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>(Dollars in
thousands)</B></FONT></P>
</DIV>
<TABLE ALIGN="center" WIDTH="600" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"></FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Current:</B></FONT></TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;4,048</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;2,826</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1,297</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued rent</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4,055</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">3,375</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,545</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and compensation</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">3,565</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,274</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">743</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable equity
securities</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,530</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&#151;</TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&#151;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">386</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">724</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">216</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">13,584</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">8,199</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4,801</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Long Term:</B></FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basis differences in fixed
assets</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,410</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,200</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,790</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,472</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">147</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">55</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4,029</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,200</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,845</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="411" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Total</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$17,613</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$10,399</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$7,646</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Significant components of the provision for
income taxes are as follows:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE ALIGN="center" CELLSPACING=0 CELLPADDING=0 WIDTH="600">
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="33">&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B><FONT
SIZE="2">For the Years Ended</FONT></B></FONT> <HR ALIGN="center"
WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>(Dollars in
thousands)</B></FONT></TD>
<TD WIDTH="33">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TH VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="94"> <DIV
ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2">January&nbsp;29,
<BR>
2000</FONT> </DIV>
<HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH VALIGN="bottom" WIDTH="9"> <DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2">&nbsp;</FONT></DIV>
</TH>
<TH VALIGN="bottom" WIDTH="19"> <DIV ALIGN="center"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"> <DIV
ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2">January&nbsp;30,
<BR>
1999</FONT> </DIV>
<HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH VALIGN="bottom" WIDTH="15"> <DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2">&nbsp;</FONT></DIV>
</TH>
<TH VALIGN="bottom" WIDTH="16"> <DIV ALIGN="center"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TH>
<TH VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"> <DIV
ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2">January&nbsp;31,
<BR>
1998</FONT> </DIV>
<HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TD WIDTH="19"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203" HEIGHT="22"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Current:</B></FONT></TD>
<TD WIDTH="33" HEIGHT="22">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="94" HEIGHT="22"></TD>
<TD WIDTH="9" HEIGHT="22"></TD>
<TD WIDTH="19" HEIGHT="22">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="95" HEIGHT="22"></TD>
<TD WIDTH="15" HEIGHT="22"></TD>
<TD WIDTH="16" HEIGHT="22">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="95" HEIGHT="22"></TD>
<TD WIDTH="19" HEIGHT="22"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal</FONT></TD>
<TD WIDTH="33">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="94"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;54,684</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;31,819</FONT></TD>
<TD WIDTH="15"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;12,366</FONT></TD>
<TD WIDTH="19"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State</FONT></TD>
<TD WIDTH="33">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="94"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">10,806</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">6,305</FONT></TD>
<TD WIDTH="15"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,250</FONT></TD>
<TD WIDTH="19"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="203">&nbsp;&nbsp;</TD>
<TD WIDTH="33">&nbsp;&nbsp;</TD>
<TD WIDTH="94"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="9">&nbsp;&nbsp;</TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="15">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
current</FONT></TD>
<TD WIDTH="33">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="94"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">65,490</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">38,124</FONT></TD>
<TD WIDTH="15"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">14,616</FONT></TD>
<TD WIDTH="19"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="203">&nbsp;&nbsp;</TD>
<TD WIDTH="33">&nbsp;&nbsp;</TD>
<TD WIDTH="94"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="9">&nbsp;&nbsp;</TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="15">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Deferred:</B></FONT></TD>
<TD WIDTH="33">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="94"></TD>
<TD WIDTH="9"></TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="95"></TD>
<TD WIDTH="15"></TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="95"></TD>
<TD WIDTH="19"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal</FONT></TD>
<TD WIDTH="33">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="94"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(5,675</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(2,298</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="15"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(1,733</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="19"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State</FONT></TD>
<TD WIDTH="33">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="94"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(1,121</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(455</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="15"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(142</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="19"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD WIDTH="203">&nbsp;&nbsp;</TD>
<TD WIDTH="33">&nbsp;&nbsp;</TD>
<TD WIDTH="94"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="9">&nbsp;&nbsp;</TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="15">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred</FONT></TD>
<TD WIDTH="33">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="94"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(6,796</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(2,753</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="15"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(1,875</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="19"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD WIDTH="203">&nbsp;&nbsp;</TD>
<TD WIDTH="33">&nbsp;&nbsp;</TD>
<TD WIDTH="94"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="9">&nbsp;&nbsp;</TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="15">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="203"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Provision for income
taxes</FONT></TD>
<TD WIDTH="33">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="94"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;58,694</FONT></TD>
<TD WIDTH="9"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="19">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;35,371</FONT></TD>
<TD WIDTH="15"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="95"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;
&nbsp;12,741</FONT></TD>
<TD WIDTH="19"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="203">&nbsp;&nbsp;</TD>
<TD WIDTH="33">&nbsp;&nbsp;</TD>
<TD WIDTH="94"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD WIDTH="9">&nbsp;&nbsp;</TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD WIDTH="15">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="95"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD WIDTH="19">&nbsp;&nbsp;</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<P></P>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">A tax benefit has been
recognized as contributed capital, in the amount of $16.4 million for the
year ended January 29, 2000, $2.3 million for the year ended January 30,
1999, and $0.3 million for the year ended January 31, 1998, resulting from
additional tax deductions related to vested restricted stock grants and
stock options exercised.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">A reconciliation between the
statutory federal income tax and the effective tax rate follows:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="329"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="329"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January 29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="16"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January 30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="16"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January 31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="329" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Federal income tax
rate</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="47"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">35</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="38"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="54"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">35</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="29"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="47"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">35</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="38"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="329" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">State income taxes, net of
federal income tax effect</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="47"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4</FONT></TD>
<TD WIDTH="38"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="54"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4</FONT></TD>
<TD WIDTH="29"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="47"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4</FONT></TD>
<TD WIDTH="38"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="329" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Other items, net</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="47"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">-</FONT></TD>
<TD WIDTH="38"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="54"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1</FONT></TD>
<TD WIDTH="29"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="47"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1</FONT></TD>
<TD WIDTH="38"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="329">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="47"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="38">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="54"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="29">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="47"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD WIDTH="38">&nbsp;&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left" WIDTH="329"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="47"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">39</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="38"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="54"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">40</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="29"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="16">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="47"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">40</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="38"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="329">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="47"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD WIDTH="38">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="54"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD WIDTH="29">&nbsp;&nbsp;</TD>
<TD WIDTH="16">&nbsp;&nbsp;</TD>
<TD WIDTH="47"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD WIDTH="38">&nbsp;&nbsp;</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>9.&nbsp;&nbsp;&nbsp;
&nbsp;Profit Sharing Plan and Employee Stock Purchase Plan</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The Company maintains a 401(k)
retirement plan and contributory profit sharing plan. Full-time employees
and part-time employees are automatically enrolled to contribute 1% of their
salary if they worked at least 1,000 hours of service per year, attained
twenty and one-half years of age, and have completed sixty days of service.
Individuals can decline enrollment or can contribute up to 20% of their
salary to the 401(k) plan on a pre-tax basis, subject to IRS limitations.
After one year of service, the Company will match up to 3% of participants'
eligible compensation. Contributions to the profit sharing plan, as
determined by the Board of Directors, are discretionary, but generally may
not exceed 15% of defined annual compensation paid to all participating
employees. The Company recognized $2.0 million, $2.9 million, and $1.2
million in expense during Fiscal 1999, Fiscal 1998, and Fiscal 1997,
respectively, in connection with these plans.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The Employee Stock Purchase
Plan covers employees who are at least 18 years old, have completed sixty
days of service, and work at least 1,000 hours. Contributions are determined
by the employee with a maximum of $1,560 annually with the Company matching
15% of the investment. These contributions are used to purchase shares of
the Company stock in the open market.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>10.&nbsp;&nbsp;&nbsp;
&nbsp;Stock Incentive Plan, Stock Option Plan, and Restricted Stock
Agreements</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Stock Incentive
Plan</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The 1999 Stock Incentive Plan
(the "Plan") was approved by the shareholders on June 8, 1999. The Board of
Directors authorized 4,000,000 shares for issuance under the Plan in the
form of stock options, stock appreciation rights, restricted stock awards,
performance units, or performance shares. Additionally, the Plan provides
that the maximum number of shares awarded to one individual may not exceed
2,000,000 shares. The Plan allows the Compensation and Stock Option
Committee to determine which employees and consultants will receive awards
and the terms and conditions of these awards. The Plan provides for a grant
of 15,000 stock options annually to directors who are not officers or
employees of the Company. These options grant in quarterly increments, vest
one year from date of grant, and are exercisable for a ten-year
&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Stock Option
Plan</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">On February 10, 1994, the
Company's Board of Directors adopted the American Eagle Outfitters, Inc.
1994 Stock Option Plan (the "Plan"). The Plan provides for the grant of
2,700,000 incentive or non-qualified options to purchase common stock. On
June 3, 1996, the Plan was amended to provide for the grant of an additional
1,350,000 shares for which options may be granted under the Plan. On May 7,
1997, the Plan was further amended to provide for the grant of an additional
1,350,000 shares for which options may be granted under the Plan.
Additionally, the amendment provided that the maximum number of options
which may be granted to one individual may not exceed 1,800,000 shares. All
full-time employees and selected related party consultants to the Company
are eligible to receive stock options which are approved by a committee of
the Board of Directors. These options primarily vest over five years and are
exercisable for a ten-year period from the date of grant. Directors who are
not officers or employees of the Company were previously granted options for
11,250 shares of stock annually at fair value, which vest one year after the
date of grant. On September 11, 1996, the Plan was amended to grant 4,500
options at fair value to the members of the Board of Directors who are not
officers or employees of the Company on the first trading day of each fiscal
quarter of the Company which vest one year after the date of grant and are
exercisable for a ten-year period from the date of grant. This provision
became effective for the third quarter of Fiscal 1996 but was superseded by
the 1999 Stock Incentive Plan.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The Company has elected to
follow Accounting Principles Board Opinion No. 25 ("APB 25"),
"Accounting for Stock Issued to Employees" and related interpretations in
accounting for its employee stock options. This election was made because,
as discussed below, the alternative fair value accounting provided for under
FASB Statement No. 123 ("FASB 123"), "Accounting for Stock-Based
Compensation" requires the use of option valuation models that were not
developed for use in valuing employee stock options. Under APB 25, because
the exercise price of the Company's employee stock options equals the market
price of the underlying stock on the date of grant, no compensation expense
is recognized.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Pro forma information
regarding net income and earnings per share is required by FASB 123, which
also requires that the information be determined as if the Company has
accounted for its employee stock options granted beginning in the fiscal
year subsequent to December 31, 1994 under the fair value method of that
Statement. The fair value for these options was estimated at the date of
grant using a Black-Scholes option pricing model with the following
weighted-average assumptions:</FONT></DIV>
<DIV>&nbsp;</DIV>

<TABLE ALIGN="center" WIDTH="615" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Fiscal
<BR>
1997</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="457" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Risk-free interest
rates</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">5.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">5.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">6.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="457" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="457" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Dividend yield</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">None</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">None</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">None</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="457" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Volatility factors of the
expected market price of the Company's common stock</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">.600</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">.678</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">.644</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="457" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" WIDTH="457" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Weighted-average expected
life</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">5 years</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">6 years</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">6 years</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=10>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="457" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Expected forfeiture
rate</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">10.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">12.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">13.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
</TABLE>
<P><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The Black-Scholes option
valuation model was developed for use in estimating the fair value of traded
options which have no vesting restrictions and are fully transferable. In
addition, option valuation models require the input of highly subjective
assumptions including the expected stock price volatility. Because the
Company's employee stock options have characteristics significantly
different from those of traded options, and because changes in the
subjective input assumptions can materially affect the fair value estimate,
in management's opinion, the existing models do not necessarily provide a
reliable single measure of the fair value of its employee stock
options.</FONT></P>
<P>&nbsp;</P>
<P>
<A NAME="TopOfPage"> </A>
<FONT
SIZE="2"></FONT> </P>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">For purposes of pro forma
disclosures, the estimated fair value of the options is amortized to expense
over the options'; vesting period. The Company's pro forma information
follows:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE ALIGN="center" WIDTH="600" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>(In thousands,
except earnings per share)</B></FONT></TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2">&nbsp;</FONT></TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="397" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Pro forma net
income</FONT></TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"> <DIV ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$83,014</FONT></DIV>
</TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"> <DIV ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$52,467</FONT></DIV>
</TD>
<TD>&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"> <DIV ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$19,060</FONT></DIV>
</TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="397" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Pro forma net income per
share</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="397" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;Basic</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;
&nbsp;1.79</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;
&nbsp;1.16</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;
&nbsp;0.43</FONT></TD>
</TR>
<TD COLSPAN=7>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="397" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;
&nbsp;Diluted</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;
&nbsp;1.70</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;
&nbsp;1.09</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;
&nbsp;0.42</FONT></TD>
</TR>
</TABLE>
<P> </P>
<P> </P>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">A summary of the Company's
stock option activity under all plans follows:</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE WIDTH="650" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=14 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>For the Years
Ended</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=16>&nbsp;</TD>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=4 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;29,
2000 (2)</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=4 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
1999 (2)</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=4 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;31,
1998 (2)</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=16>&nbsp;</TD>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH>&nbsp;&nbsp;&nbsp;&nbsp;</TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"
SIZE="2"><B>Options</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1"
NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Weighted-
<BR>
Average
<BR>
Exercise
<BR>
Price</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"
SIZE="2"><B>Options</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1"
NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Weighted-
<BR>
Average
<BR>
Exercise
<BR>
Price</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"
SIZE="2"><B>Options</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1"
NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Weighted
<BR>
-Average
<BR>
Exercise
<BR>
Price</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=16>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="231" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Outstanding&#151;beginning
of year</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">3,526,430</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;5.21</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">3,356,238</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;2.11</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,843,552</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1.98</FONT></TD>
</TR>
<TD COLSPAN=16>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="231" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Granted (Exercise Price
equal to Fair Value)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">2,028,900</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$33.34</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,236,152</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$11.16</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,035,000</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$2.63</FONT></TD>
</TR>
<TD COLSPAN=16>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="231" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Exercised (1)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(627,720</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;4.26</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(950,606</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1.88</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(442,214</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$2.21</FONT></TD>
</TR>
<TD COLSPAN=16>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="231" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Cancelled</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(73,580</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$22.82</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(115,354</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;6.19</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(80,100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$2.27</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </TD>
</TR>
<TD COLSPAN=16>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="231" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Outstanding&#151;end of year
(3)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">4,854,030</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$16.81</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">3,526,430</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;5.21</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">3,356,238</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$2.11</FONT></TD>
</TR>
<TR>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
<TD>&nbsp;&nbsp;</TD>
<TD>&nbsp;&nbsp;</TD>
<TD> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </TD>
</TR>
<TD COLSPAN=16>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="231" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Exercisable&#151;end of year
(4)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">1,010,547</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;5.05</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">553,224</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;2.37</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">664,424</FONT></TD>
<TD><FONT
COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1.63</FONT></TD>
</TR>
<TD COLSPAN=16>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="231" ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Weighted average fair value
of options granted during the year</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$20.69</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;6.91</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$1.46</FONT></TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(1) </FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Options exercised during
Fiscal 1999 ranged in price from $1.39&#151;$20.04 with an average of
$4.26.</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(2) </FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">As of January 29, 2000,
January 30,1999, and January 31, 1998, the Company had 2,332,372 shares,
287,472 shares and 1,408,276 shares available for grant,
respectively.</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(3) </FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">As of January 29, 2000, the
exercise price of 2,633,879 options outstanding ranged between $1.39 and
$8.92 with weighted average remaining contractual lives between
approximately 4 and 8 years. The exercise price of 1,880,751 options
outstanding ranged between $17.69 and $34.19 with weighted average
remaining contractual lives between approximately 8 and 10 years. The
exercise price of 339,400 options outstanding ranged between $35.06 and
$47.27 with weighted average remaining contractual lives between 9 and 10
years.</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(4) </FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">As of January 29, 2000, the
exercise price of 876,797 options exercisable ranged between $1.39 and
$8.92.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><I>Restricted Stock
Grants</I></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The Company maintains a
restricted stock plan for compensating certain employees and selected
related party consultants. This plan was superseded by the 1999 Stock
Incentive Plan. At January 29, 2000, 1,369,607 shares of restricted stock
were granted at prices ranging from $3.56 to $35.09, with 1,157,538 shares
vested. During Fiscal 1999, 112,669 shares of restricted stock were granted
at $35.09.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">For Fiscal 1999, Fiscal 1998,
and Fiscal 1997, the Company recorded $4.8 million, $1.3 million, and $1.2
million in compensation expense, respectively, on restricted stock and
certain stock options granted during Fiscal 1996 where the exercise price is
less than fair value of the underlying stock, and certain options granted to
non-employees.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>11.&nbsp;&nbsp;&nbsp;
&nbsp;Quarterly Financial Information&#151;Unaudited</B></FONT></DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>(In thousands,
except earnings per share)</B></FONT></TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=7 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>Quarters Ended
(2)</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=9><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2">&nbsp;</FONT></TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>May 1,
<BR>
1999</B></FONT> </DIV>
<HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>July 31,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>October 31,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January 29,
<BR>
2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="358" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net sales</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$145,404</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$178,582</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$222,693</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$285,425</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="358" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Gross profit</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">59,027</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">72,589</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">95,844</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">129,048</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="358" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Income before provision for
income taxes</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">20,169</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">27,928</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">40,096</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">61,161</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="358" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">12,243</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">16,949</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">24,337</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">37,131</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="358" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Basic earnings per common
share (1)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.27</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.36</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.52</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.80</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="358" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Diluted earnings per common
share (1)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.25</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.35</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.50</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.76</FONT></TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2">&nbsp;</FONT></TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>May&nbsp;2,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>August&nbsp;1,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>October&nbsp;31,
<BR>
1998</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times" SIZE="2"><B>January&nbsp;30,
<BR>
1999</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="350" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net sales</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 99,694</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 125,731</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$149,068</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ 213,107</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="350" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Gross profit</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">37,217</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">49,063</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">60,420</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">87,811</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="350" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Income before provision for
income taxes</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">9,561</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">15,738</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">22,685</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">41,505</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="350" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">5,805</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">9,553</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">13,871</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">24,889</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="350" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Basic earnings per common
share (1)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.13</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;0.21</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.31</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;0.55</FONT></TD>
</TR>
<TD COLSPAN=9>&nbsp;</TD>
<TR>
<TD VALIGN="bottom" WIDTH="350" NOWRAP ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Diluted earnings per common
share (1)</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$ &nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;0.12</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;0.20</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0.29</FONT></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;0.52</FONT></TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(1)</FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Net income per share amounts
have been restated to reflect the adoption of FASB 128, the three-for-two
stock splits, and the two-for-one stock split.</FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(2) </FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Quarters are presented in
13-week periods consistent with the Company's fiscal year discussed in
Note 2 of the Consolidated Financial Statements.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>12.&nbsp;&nbsp;&nbsp;
&nbsp;Subsequent Events</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Effective January 31, 2000,
the Company acquired importing operations from Schottenstein Stores
Corporation, a related party. The purpose of the acquisition was to
integrate the expertise of the importing operation into the Company's supply
chain process and to streamline and improve the efficiency of the process.
The terms of the acquisition require a payment of $8.5 million to
Schottenstein Stores Corporation which was made on March 6, 2000. The
majority of the acquisition price will be recorded as goodwill and amortized
on a straight-line basis over its anticipated useful life.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">On February 24, 2000, the
Company authorized the repurchase of up to 2.5 million shares of its stock.
The repurchase of shares will occur at the discretion of the
Company.</FONT></DIV>
<P></P>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>Report of Independent
Auditors</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">To the Board of Directors and
Stockholders of
<BR>
American Eagle Outfitters, Inc.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We have audited the
accompanying consolidated balance sheets of American Eagle Outfitters, Inc.
as of January 29, 2000, January 30, 1999, and January 31, 1998 and the
related consolidated statements of operations, stockholders' equity, and
cash flows for the years then ended. The financial statements are the
responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">We conducted our audits in
accordance with auditing standards generally accepted in the United States.
Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">In our opinion, the
consolidated financial statements referred to above present fairly, in all
material respects, the consolidated financial position of American Eagle
Outfitters, Inc. at January 29, 2000, January 30, 1999, and January 31,
1998, and the consolidated results of its operations and its cash flows for
the years then ended, in conformity with accounting principles generally
accepted in the United States.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Ernst &amp; Young
LLP</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Pittsburgh,
Pennsylvania</FONT></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">February 24, 2000, except for
Note 12, as to which the date is</FONT></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">March 6, 2000</FONT></DIV>
<P>&nbsp;</P>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;</B></FONT>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2% NOWRAP><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 9.&nbsp;
&nbsp;</B></FONT></TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>CHAN</B></FONT><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>GES IN AND DISAGREEMENTS
WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.</B></FONT> </TD>
</TR>
</TABLE>
<P></P>
</DIV>
<DIV ALIGN="left"> <P></P>
<P><FONT
COLOR="#000000" FACE="'Times New Roman', Times">None.</FONT></P>
</DIV>
<DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>PART III</B></FONT></DIV>
<DIV>&nbsp;
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2% NOWRAP> <DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 10.
&nbsp;</B></FONT></DIV>
</TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%> <DIV><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>DIRECTORS AND EXECUTIVE
OFFICERS OF THE REGISTRANT.</B></FONT></DIV>
<DIV>&nbsp;</DIV>
</TD>
</TR>
</TABLE>
<FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;
&nbsp;</B></FONT></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The information appearing
under the captions "Nominees For Election As Directors", "Information
Concerning Board of Directors" and "Executive Officers" in our Proxy
Statement relating to the Annual Meeting of Stockholders to be held on June
12, 2000, is incorporated herein by reference.</FONT></DIV>
<DIV>&nbsp;
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2% NOWRAP> <DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 11.
&nbsp;</B></FONT></DIV>
</TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>EXECUTIVE
COMPENSATION.</B></FONT></TD>
</TR>
</TABLE>
<FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;
&nbsp;</B></FONT></DIV>
<DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The information appearing in
our Proxy Statement relating to the Annual Meeting of Stockholders to be
held on June 12, 2000 under the captions "Executive Officer Compensation",
"Option/SAR Grants in Last Fiscal Year", and "Aggregated Option Exercises
and Fiscal Year-End Option Value" is incorporated herein by
reference.</FONT></DIV>
<DIV>&nbsp;
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2% NOWRAP> <DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 12.
&nbsp;</B></FONT></DIV>
</TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%> <DIV><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.</B></FONT></DIV>
<DIV>&nbsp;</DIV>
</TD>
</TR>
</TABLE>
<FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;
&nbsp;</B></FONT></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The information appearing
under the caption "Security Ownership of Principal Stockholders and
Management" in our Proxy Statement relating to the Annual Meeting of
Stockholders to be held on June 12, 2000, is incorporated herein by
reference<B>.</B></FONT></DIV>
<DIV>&nbsp;
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2% NOWRAP> <DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 13.
&nbsp;</B></FONT></DIV>
</TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%> <DIV><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>CERTAIN RELATIONSHIPS AND
RELATED TRANSACTIONS.</B></FONT></DIV>
<DIV>&nbsp;</DIV>
</TD>
</TR>
</TABLE>
<FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;
&nbsp;</B></FONT></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The information appearing
under the caption "Certain Relationships and Related Transactions" in the
Company's Proxy Statement relating to the Company's Annual Meeting of
Stockholders to be held on June 12, 2000, is incorporated herein by
reference.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>PART IV</B></FONT></DIV>
<DIV>&nbsp;
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=2% NOWRAP> <DIV></DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 14.</B></FONT></DIV>
</TD>
<TD WIDTH=2%>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH=96%><FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>EXHIBITS, FINANCIAL
STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.</B></FONT></TD>
</TR>
</TABLE>
<FONT
COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;
&nbsp;</B></FONT>&nbsp;</DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0" HEIGHT="20">
<TR>
<TD WIDTH="7%" ALIGN="left" VALIGN="top"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(a)(1)</FONT></TD>
<TD ALIGN="left" WIDTH="93%" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">The following consolidated
financial statements are included in Item 8:</FONT></DIV>
</TD>
</TR>
</TABLE>
<P></P>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="7%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="93%" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Consolidated Balance Sheets
as of January 29, 2000, January 30, 1999, and January 31, 1998</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="7%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="93%" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Consolidated Statements of
Operations for the years ended January 29, 2000, January 30, 1999, and
January 31, 1998</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="7%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="93%" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Consolidated Statements of
Stockholders' Equity for the years ended January 29, 2000, January 30,
1999, and January 31, 1998</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="7%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="93%" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Consolidated Statements of
Cash Flows for the years ended January 29, 2000, January 30, 1999, and
January 31, 1998</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="7%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="93%" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Notes to the Consolidated
Financial Statements</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left">
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="7%" ALIGN="left" VALIGN="top"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">(a)(2) </FONT></TD>
<TD ALIGN="left" WIDTH="93%" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">No financial statement
schedules are supplied because of the absence of the conditions under
which they are required.</FONT></DIV>
</TD>
</TR>
</TABLE>
</DIV>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P><FONT
FACE="Times New Roman">(a)(3) Exhibits:</FONT></P>
<P>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TH HEIGHT="41"><FONT
SIZE="2"> Exhibit
<BR>
No. </FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TH>
<TH HEIGHT="41"><FONT
SIZE="2"></FONT></TH>
<TH HEIGHT="41"><FONT
SIZE="2"> Exhibit Index
<BR>
Page No. </FONT> <HR NOSHADE ALIGN="center" WIDTH="30%" SIZE="1"> </TH>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">2.1</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Plan of Reorganization and Merger Agreement,
dated as of November 30, 1998, among Natco Industries, Inc., Thorn Hill
Acquisition Corp., Natco Limited Liability Company and American Eagle
Outfitters, Inc.</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Appendix A to the
Prospectus included in the Registration Statement on Form S-4 (file no.
333-68609) filed December 9, 1998, as amended, and incorporated herein by
reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">3.1</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Second Amended and Restated Certificate of
Incorporation, as amended.</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 3.1 to
Registration Statement on Form S-4 (file no. 333-68609) filed December 9,
1999, as amended, and incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">3.2</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Amended and Restated Bylaws.</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 3.2 to
Registration Statement on Form S-4 (file no. 333-68609) filed December 9,
1999, as amended, and incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">4.1</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">See Second Amended and Restated Articles of
Incorporation, as amended, in Exhibit 3.1</FONT></P>
</TD>
<TD WIDTH="302"><FONT
SIZE="2">&#160; </FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">4.2</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">See Amended and Restated Bylaws in Exhibit
3.2</FONT></P>
</TD>
<TD WIDTH="302"><FONT
SIZE="2">&#160; </FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.1</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Restated and Amended Office/Distribution
Center Lease dated September 10, 1999 between the Registrant and Linmar
Realty Company.</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 10.1 to the Form
10-Q for the period ended October 30, 1999, filed November 24, 1999, and
incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.2</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Form of Import Services Agreement.</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 10.2 to
Registration Statement on Form S-1 (file no. 33-75294) filed February 14,
1994, as amended, and incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.3</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Form of the Registrant</FONT><FONT
FACE="Courier New" SIZE="2">'</FONT><FONT
FACE="Times New Roman" SIZE="2">s 1994 Stock Option Plan.</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 4(a) to
Registration Statement on Form S-8 (file no. 33-79358) filed May 25, 1994,
as amended on Form S-8 (file no. 33-12643) filed September 25, 1996 and
incorporated herein by reference and Form S-8 (file no. 33-44759) filed
January 22, 1998 and incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.4</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Form of Restricted Stock Agreement</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 4(a) to
Registration Statement on Form S-8 (file no. 33-79358) filed May 25, 1994
and incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.5</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Form of Indemnification Agreement</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 10.7 to
Registration Statement on Form S-1 (file no. 33-75294) filed February 14,
1994, as amended, and incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.6</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Merchandise Royalty Agreement</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 10.8 to Form
10-K for the year ended July 29, 1995, filed May 1, 1996, and incorporated
herein by reference.</FONT></P>
</TD>
</TR>
</TABLE>
<P>
<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.7</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Employee Stock Purchase Plan</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 4(a) to
Registration Statement on Form S-8 (file no. 33-33278), filed on April 5,
1996 and incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.8</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Form of the Registrant's 1999 Stock
Incentive Plan</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit A to the 1999
Proxy Statement, filed May 7, 1999, and incorporated herein by
reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.9</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Employment Agreement between the Registrant
and Roger S. Markfield dated September 9, 1999.</FONT></P>
</TD>
<TD WIDTH="302"> <P><FONT
FACE="Times New Roman" SIZE="2">Previously filed as Exhibit 10.4 to the Form
10-Q for the period ended October 30, 1999, filed November 24, 1999, and
incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">10.10</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Purchase and Sale Agreement between Blue
Star Imports, L.P. and Schottenstein Stores Corporation.</FONT></P>
</TD>
<TD WIDTH="302"><FONT
SIZE="2">&#160; </FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65" HEIGHT="30">&nbsp;</TD>
<TD WIDTH="301" HEIGHT="30">&nbsp;</TD>
<TD WIDTH="302" HEIGHT="30">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65" HEIGHT="30"> <FONT
FACE="Times New Roman" SIZE="2">21</FONT> </TD>
<TD WIDTH="301" HEIGHT="30"> <P><FONT
FACE="Times New Roman" SIZE="2">Subsidiaries.</FONT></P>
</TD>
<TD WIDTH="302" HEIGHT="30"><FONT
SIZE="2">&#160; </FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">23</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Consent of Ernst &amp; Young LLP.</FONT></P>
</TD>
<TD WIDTH="302"><FONT
SIZE="2">&#160; </FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">24</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Power of Attorney.</FONT></P>
</TD>
<TD WIDTH="302"><FONT
SIZE="2">&#160; </FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="301">&nbsp;</TD>
<TD WIDTH="302">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="65"> <P><FONT
FACE="Times New Roman" SIZE="2">27</FONT></P>
</TD>
<TD WIDTH="301"> <P><FONT
FACE="Times New Roman" SIZE="2">Financial Data Schedule.</FONT></P>
</TD>
<TD WIDTH="302"><FONT
SIZE="2">&#160; </FONT></TD>
</TR>
</TABLE>
<P>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TD WIDTH="34"> <P ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">(b)</FONT> <FONT
SIZE="2">
<BR>
</FONT> </TD>
<TD WIDTH="644"> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">Reports on Form 8-K
<BR>
</FONT></DIV>
</TD>
</TR>
<TR>
<TD WIDTH="34">&nbsp;</TD>
<TD WIDTH="644">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="34"> <DIV ALIGN="left"></DIV>
</TD>
<TD WIDTH="644"> <P ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">None.</FONT> <FONT
SIZE="2">
<BR>
</FONT></P>
</TD>
</TR>
<TR>
<TD WIDTH="34">&nbsp;</TD>
<TD WIDTH="644">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="34"> <P ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">(c)
<BR>
</FONT></P>
</TD>
<TD WIDTH="644"> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">Exhibits
<BR>
</FONT></DIV>
</TD>
</TR>
<TR>
<TD WIDTH="34">&nbsp;</TD>
<TD WIDTH="644">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="34"> <DIV ALIGN="left"></DIV>
</TD>
<TD WIDTH="644"> <P ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">The exhibits to this report begin on page 18.
<BR>
</FONT></P>
</TD>
</TR>
<TR>
<TD WIDTH="34">&nbsp;</TD>
<TD WIDTH="644">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="34"> <P ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">(d)
<BR>
</FONT> </TD>
<TD WIDTH="644"> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">Financial Statement Schedules</FONT> <FONT
SIZE="2">
<BR>
</FONT></DIV>
</TD>
</TR>
<TR>
<TD WIDTH="34">&nbsp;</TD>
<TD WIDTH="644">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="34"> <DIV ALIGN="left"></DIV>
</TD>
<TD WIDTH="644"> <P ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">None</FONT> <FONT
SIZE="2">
<BR>
</FONT> </TD>
</TR>
</TABLE>
<P>&nbsp;</P>
</FONT> <DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">
<B>SIGNATURES</B></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.</FONT></DIV>
<DIV>&nbsp;</DIV>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">AMERICAN EAGLE OUTFITTERS,
INC.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="56%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="44%" VALIGN="top"> <DIV ALIGN="center"></DIV>
</TD>
</TR>
</TABLE>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <FONT
COLOR="#000000" FACE="'Times New Roman', Times">By:&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/&nbsp;Jay
L. Schottenstein </FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1">
<DIV ALIGN="center"><FONT
COLOR="#000000" FACE="'Times New Roman', Times"> </FONT><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Jay L. Schottenstein,
Chairman</FONT><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> </FONT> </DIV>
</TD>
</TR>
</TABLE>
<DIV>&nbsp;</DIV>
<DIV ALIGN="left"><FONT
COLOR="#000000" FACE="'Times New Roman', Times">Pursuant to the requirements
of the Securities Exchange Act of 1934, this report has been signed by the
following persons in the capacities and on April 12, 2000.</FONT></DIV>
<DIV>&nbsp;</DIV>

<TABLE ALIGN="center" WIDTH="666" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center" HEIGHT="16" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman',
Times"><B>Signature</B></FONT></TH>
<TH HEIGHT="16" WIDTH="13"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" HEIGHT="16" WIDTH="351"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman',
Times"><B>Title</B></FONT></TH>
</TR>
<TD COLSPAN=3><FONT
SIZE="5">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Jay L.
Schottenstein </FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1">
<FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Jay L. Schottenstein
<BR>
(Principal Executive Officer)</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Chairman of the
Board and Chief Executive Officer
<BR>
&nbsp;</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ George Kolber
</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> George
Kolber</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vice Chairman and
Chief Operating Officer</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Roger S.
Markfield</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Roger S.
Markfield</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">President, Chief
Merchandising Officer and Director</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Laura A. Weil
</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Laura A.
Weil</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Executive Vice
President and Chief Financial Officer</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Dale E. Clifton
</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Dale E.
Clifton</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vice President,
Controller, and Chief Accounting Officer</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Saul
Schottenstein</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1">
<FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Saul
Schottenstein</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vice
Chairman</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Ari
Deshe</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Ari
Deshe</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Jon P.
Diamond</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Jon P.
Diamond</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Martin P.
Doolan </FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Martin P.
Doolan</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Gilbert W.
Harrison</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Gilbert W.
Harrison</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Michael G.
Jesselson</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Michael G.
Jesselson</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Thomas R.
Ketteler </FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Thomas R.
Ketteler</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ John L.
Marakas</FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> John L.
Marakas</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ David W.
Thompson </FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">David W.
Thompson</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
</TR>
<TD COLSPAN=3><FONT
SIZE="2">&nbsp;</FONT></TD>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="300"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/ Gerald E.
Wedren </FONT> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> <FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Gerald E.
Wedren</FONT></TD>
<TD WIDTH="13"><FONT
SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="351" NOWRAP ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
</TR>
</TABLE>
<P></P>
<DIV><FONT
SIZE="1"></FONT></DIV>
<TABLE WIDTH="50%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="25%" ALIGN="left" VALIGN="top"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;*By:
&nbsp;<U> </U></FONT></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/&nbsp;&nbsp;&nbsp;&nbsp;Laura
A. Weil<U> <HR SIZE=1 NOSHADE> </U>&nbsp;&nbsp;Laura A. Weil,
Attorney-in-Fact<U> </U></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV ALIGN="left"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U> </U></FONT></DIV>
<DIV ALIGN="center"><FONT
SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></DIV>
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