FOOTSTAR IS ONE OF THE LARGEST FOOTWEAR RETAILERS IN THE UNITED STATES COMPETING IN TWO DISTINCT SECTORS: DISCOUNT AND FAMILY FOOTWEAR AND ATHLETIC FOOTWEAR. FOOTSTAR BECAME AN INDEPENDENT, PUBLICLY HELD COMPANY AS A RESULT OF THE SPIN-OFF OF FOOTWEAR OPERATIONS FROM MELVILLE CORPORATION IN OCTOBER 1996. FOOTSTAR IS LISTED ON THE NEW YORK STOCK EXCHANGE UNDER THE FTS SYMBOL.