Finlay’s Belk Licence Will Not Be Renewed in 2007

Finlay Enterprises, Inc., a retailer of fine jewelry and the largest operator of licensed fine jewelry departments in department stores throughout the United States, last week announced that its license with Belk, Inc. will not be renewed when it expires on January 31, 2007. Finlay currently operates in 75 Belk doors.

Belk has entered into an agreement to purchase the assets of Migerobe, Inc., a privately-held company that currently licenses fine jewelry departments in 36 Belk locations.

In fiscal 2005, Finlay’s 75 locations generated approximately $43 million in revenue. Finlay is currently evaluating the impact these closings will have on its financial results for fiscal 2006 and beyond.

Arthur E. Reiner, chairman and CEO of Finlay Enterprises, Inc., commented, "Although we are disappointed with Belk's decision, our core business remains solid and we are confident that our flexible cost structure will allow us to manage the transition in the most efficient manner possible. We remain focused on our ongoing efforts to add new sources of growth to our business. We continue to be pleased with the performance of Carlyle and have plans in place for continued growth of this business. In addition to the license agreements with Federated for Macy's South, Macy's Midwest, Macy's North, and Macy's Northwest previously extended to January 31, 2009, we also announced last week the extension of our Bloomingdale's agreement through January 30, 2010."

Finlay Enterprises, Inc., through its wholly-owned subsidiary, Finlay Fine Jewelry Corporation, is one of the leading retailers of fine jewelry and the largest operator of licensed fine jewelry departments in department stores throughout the United States with sales of $990.1 million in fiscal 2005. The number of locations at the end of the first quarter of fiscal 2006 totaled 957, including 32 Carlyle specialty jewelry stores.