INDUSTRY NEWS

PITTSBURGH (Nov. 26, 2007)—Dick’s Sporting Goods Inc. (DKS) agreed to purchase privately owned Chick’s Sporting Goods. By entering into a definitive stock purchase agreement, Dick’s will pay approximately $40 million in cash for the outstanding equity of Chick’s under the assumption that Chick’s is valued at $71 million (including approximately $31 million in indebtedness).

For Dick’s chairman and CEO Edward W. Stack, the deal is a strategic move to open doors in Southern California. “Chick’s Sporting Goods is well positioned in several important Southern California markets,” he says. “This acquisition provides the company with an immediate presence and market share in Southern California. The passion with which Chick’s Sporting Goods serves the core athlete and California lifestyle customers, which include beach and skate markets via their assortment featuring products from authentic manufacturers, commitment to customer service and knowledgeable sales associates, along with Chick’s community involvement, complements Dick’s Sporting Goods strategy.”

Chick’s CEO James M. Chick is “pleased to be part of the Dick’s Sporting Goods family.” Chick says, “The resources and expertise that are available from Dick’s, combined with our knowledge and experience in the California marketplace, will provide our customers with a great shopping experience.”

Chick’s currently operates 15 specialty sporting goods stores in Southern California, most of which average 50,000 square feet. The company generated more than $120 million in sales during the fiscal year ended June 30. Two additional store leases which were previously signed will now open as Dick’s stores in 2008 and 2009.

Dick’s Sporting Goods operates 340 sporting goods stores in 36 states primarily throughout the eastern half of the United States. The company also owns Golf Galaxy, a multi-channel golf specialty retailer, with 77 stores in 29 states.

Both companies expect the transaction will be completed on or before December 31.

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