The acquisition of 350 Footaction stores in 2004 resulted in an expansion of the Company’s market share in the United States. The target customer for Footaction is a 16- to-34 year old male who is influenced by the latest fashion trends that are prevalent in the urban marketplace.

Since the time of the acquisition, several key initiatives taken by the Company have contributed to increased sales and profitability in Footaction stores. These initiatives include working with the Company’s key suppliers to add exciting and unique merchandise assortments, remodeling stores and improving customer service. The profitability of Footaction stores was also enhanced by capitalizing on the many synergies that operating under the Foot Locker, Inc. umbrella provides, including the areas of logistics, finance, information systems and global sourcing.

Given the success of efficiently integrating this chain, the Company began to expand it in 2005, and has opened 41 new stores during the past two years. At the end of 2006, Footaction operated a total of 373 stores, averaging 4,700 gross square feet each. Additional Footaction stores are expected to be opened over the coming years.