Event Brief of Q3 2002 Hot Topic Earnings Conference Call - Final - Part 3.

(From Fair Disclosure Wire)

Q64. The demise of Invader Zim that is going off the air, do you see that as impacting your sales or do you see the next new thing and what would that be? (Richard Jaffe (Phonetic) - UBS PaineWebber)

A. It probably will be one of our top two or three gift cards. The demise of anything that kids want to see actually works to our advantage. Unfortunately, it is like when a rock star dies, it works to our advantage also. I mean, when it is no longer available, it becomes even more important and more desirable to teens. So, we are not planning on having any problems with our Invader Zim gift cards or merchandise. Q65. Should I stock up on Invader Zim as collector's items? (Richard Jaffe (Phonetic) - UBS PaineWebber)

A. That is a great idea. I think there are a few of our customers who are doing that. Q66. The opportunity to offer a greater breath of assortment in Torrid, how wide will you go? I know how big Torrid can get, but how broad will these assortments get vs. sportswear, casual accessory, intimate apparel, what other categories you think you can you add or are interested in pursuing? (Richard Jaffe (Phonetic) - UBS PaineWebber)

A. We want to stay focused on being on the fashion forward end of mainstream moving into some of the more edgy merchandise. I think we are clear about where we want to target from fashion curve. As we have experienced in HOTT and as we have experienced in Torrid, we will continue to test new categories and if something hits, then we will go with it. Certainly in the accessory categories, there are some new things that we are trying for holiday, that I don't want to discuss on the call, but there are some new categories that we are very encouraged by. Last year we tested swimwear and that did well. We will continue with that. We still have opportunities in some of the other seasonal categories. It is still a work-in-progress. Q67. The large-sized business is well publicized but remains inadequately served. Why is nobody catching on to this and do you see anybody paying attention to Torrid and (Indiscernible) shops being perhaps the only one even close? (Richard Jaffe (Phonetic) - UBS PaineWebber)

A. The media is paying attention to Torrid and the customers are paying attention to Torrid. So, I will take those two over the competition in the meantime. Q68. Are they asleep at the switch or who knows? (Richard Jaffe (Phonetic) - UBS PaineWebber)

A. Who knows. I don't know. I don't know the answer to that. Q69. Anything beside the Kermit card that I must buy this week? (Richard Jaffe (Phonetic) - UBS PaineWebber)