Foot Locker (FL)

Financial Position/Dividend Increase

The Company ended the third quarter with cash and short-term investments totaling $263 million. During the third quarter, the Company repurchased $38 million of its 8.5 percent bonds, due in 2022, at a $2 million discount to face value.

On November 15, 2006, the Company’s Board of Directors increased Foot Locker, Inc.’s quarterly cash dividend 39 percent from its previous amount to $0.125 per share, which is equivalent to an annualized rate of $0.50 per share. The increased dividend will be payable February 2, 2007 to shareholders of record on January 19, 2007.

The Company is hosting a live conference call at 10:00 a.m. (EST) on Friday, November 17, 2006 to discuss these results and provide guidance with regard to its strategic and earnings outlook for the balance of 2006. This conference call may be accessed live from the Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com. The conference call will be available for webcast replay until 5:00 p.m. on Friday, November 24, 2006.

This press release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including, but not limited to, such things as future capital expenditures, expansion, strategic plans, dividend payments, stock repurchases, growth of the Company’s business and operations, including future cash flows, revenues and earnings, and other such matters are forward-looking statements. These forward-looking statements are based on many assumptions and factors detailed in the Company’s filings with the Securities and Exchange Commission, including the effects of currency fluctuations, customer demand, fashion trends, competitive market forces, uncertainties related to the effect of competitive products and pricing, customer acceptance of the Company’s merchandise mix and retail locations, the Company’s reliance on a few key vendors for a majority of its merchandise purchases (including a significant portion from one key vendor), unseasonable weather, economic conditions worldwide, any changes in business, political and economic conditions due to the threat of future terrorist activities in the United States or in other parts of the world and related U.S. military action overseas, the ability of the Company to execute its business plans effectively with regard to each of its business units, risks associated with foreign global sourcing, including political instability, changes in import regulations, and disruptions to transportation services and distribution. Any changes in such assumptions or factors could produce significantly different results. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events, or otherwise.

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The Company’s financial position continues to strengthen, with its cash and short-term investment position at the end of the third quarter of $390 million and its cash and short-term investment position, net of debt, $160 million greater than at the same time last year. During the third quarter, the Company repurchased 790,200 shares of its common stock for $17 million. To date, the Company has spent $20 million of a $50 million board-authorized share repurchase program that expires in February 2006. The Company expects its Board of Directors to consider the authorization of a new share repurchase program early in 2006.

As previously announced, on November 16, 2005, the Company’s Board of Directors increased Foot Locker, Inc.’s quarterly common stock dividend 20 percent from its previous amount to $0.09 per share, which is equivalent to an annualized rate of $0.36 per share. The increased dividend will be payable January 27, 2006 to shareholders of record on January 13, 2006.

The Company is hosting a live conference call at 10:00 am (EST) on Friday, November 18, 2005 to discuss these results and provide guidance with regard to its earnings outlook for the balance of 2005. This conference call may be accessed live from the Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com. The conference call will be available for webcast replay until 5:00 pm on Monday, November 28, 2005.

The Company utilized its strong cash flow during 2004 to fund acquisitions, support its capital expenditure program, reduce its liabilities and increase cash dividends to its shareholders. At the end of the year, the Company’s cash and short-term investment position stood at $492 million, and its financial position strengthened due to the following initiatives that were completed during 2004:

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