Finlay Enterprises, Inc., New York, reports department sales increases (departments open for the same months during the comparable period) of 0.3% for the second quarter ended August 3. Total sales for the second quarter were $187.3 million compared to $196.2 million in the second quarter of 2001.

Comparable store sales for the six months ended August 3, 2002 increased by 1.2%. Total sales for the six-month period totaled $374.6 million compared to $389.4 million in the six months of 2001.

As previously stated, as a result of higher than anticipated sales, the company says it expects second quarter bottom-line results to be at the better end of its ($0.08) to ($0.10) per share range.

The Company will report full results for the second quarter on August 28, 2002.

Finlay Enterprises, Inc., through its wholly owned subsidiary, Finlay Fine Jewelry Corp., is one of the leading retailers of fine jewelry and the largest operator of leased fine jewelry departments in department stores throughout the United States with sales of $953 million in fiscal 2001. The number of locations at the end of the second quarter of fiscal 2002 totaled 1,001 compared to 1,018 locations at the end of the second quarter of the prior year.

JCK