The company also announced that as a result of the lower than expected November sales performance it now estimates net income for the fourth quarter of 2004 will be in the range of approximately $0.37 to $0.43 per diluted share versus previous guidance of the lower end of $0.49 to $0.52 per diluted share.

Betsy McLaughlin, Chief Executive Officer, said, "We are clearly disappointed by our November results and their implications for the remainder of the quarter. Sales in our music-related classifications and women's tops at the Hot Topic stores maintained their strong positive comp trend; however, the accessories category has not performed as we anticipated. As a result, we are revising our sales and earnings expectations for the fourth quarter. The revised guidance reflects a comparable store sales performance in the range of down mid to high single digits for the quarter. We are continuing efforts to address resulting inventory risks. We expect inventories at the end of the quarter to be flat on a per square foot basis."

For more detailed information on November results, please call 626-709-1209 to listen to a recorded commentary. Hot Topic, Inc. is a national mall-based specialty retailer. Hot Topic offers apparel, accessories and gifts to young men and women principally between the ages of 12 and 22. Torrid, the company's second concept, provides plus-size fashion-forward apparel and accessories that target young women principally between the ages of 15 and 29. The company currently operates 592 Hot Topic stores in all 50 states and Puerto Rico, 76 Torrid stores, and Internet stores www.hottopic.com and www.torrid.com.

In addition to the historical information contained herein, this news release contains forward-looking statements, which include statements relating to financial results, guidance, projections and other financial performance, and managing growth. These statements involve risks and uncertainties, including risks and uncertainties associated with meeting expected financial results, management of growth, relationships with mall developers and operators, the risk that available cash or mall space will not be adequate for planned expansion, fluctuations in sales and comparable store sales results, risks and uncertainties with respect to new store openings including risks associated with the company's new store concepts and Internet stores, music and fashion trends, competition from other retailers, uncertainties generally associated with specialty retailing, the effect of economic conditions, the effect of severe weather or natural disasters, political and/or social changes or events that could negatively impact shopping patterns and/or mall traffic as well as other risks detailed in the company's SEC reports, including its Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K for the year ended January 31, 2004. Historical results achieved are not necessarily indicative of the future prospects of the company, and actual results or circumstances could differ materially from the forward-looking statements.