The Athlete's Foot Opens Next Generation Performance Store in Tuscaloosa, AL

Market Wire, November, 2007

The Athlete's Foot (TAF), worldwide leader in athletic footwear franchising, announced today that the first next generation TAF performance store will open in Tuscaloosa, Alabama, next week. The Tuscaloosa franchise location is the first in the world to feature the new store design, logo and merchandising system that was announced by TAF's parent company, NexCen Brands, Inc. ("NexCen") (NASDAQ: NEXC), in June of this year.

"We're changing the face of footwear retailing," commented NexCen's President and CEO, Robert W. D'Loren. "The industry is increasingly driven by overall lifestyle of our consumers, not just the technical aspects of footwear. Our new TAF brand and store embodies this shift in the retail climate by creating an apparel and footwear performance shop that appeals to everyday athletes."

TAF of the Future

The hallmarks of the new TAF are: a sleek, modern corporate identity that replaces the 36-year old Athlete's Foot logo; a store design inspired by the athletic lifestyle, featuring awnings and banners meant to evoke a "race day" atmosphere; and an innovative merchandising system that allows customization of store offerings to suit individual communities and athletes.

The merchandising system, which consists of wall and floor unit fixtures that are "wrapped" in a graphics package expressing the featured style: performance athletics (pure athletic performance), classic athletics (retro, collegiate varsity style), street athletics (urban vibe) or fusion athletics (edgy model inspired by extreme and board sports). The new system empowers franchise owners to be flexible, current and responsive to the demands of their core customers in each of their store locations by providing modular merchandise units in a variety of styles.

The next generation TAF stores are on the forefront of innovation, and Tuscaloosa will also be the first store to feature TAF TV, in-store video programming promoting the TAF brand that will run on flat screens seamlessly incorporated into the retail display environment. The TAF TV network will deliver real-time health and fitness tips, vendor promotions, advertisements and training webinars. By creating and distributing programming from a central unit, TAF will be able to stream unique content to all TAF televisions at the same time.

NexCen began the TAF re-branding effort after acquiring The Athlete's Foot brand in November of 2006. The new store concept was designed and presented to franchise owners at the company's Global Franchise Convention in Las Vegas just seven months after the acquisition. While Tuscaloosa marks the first implementation of the new store design, it is expected that the changes will be in effect system-wide within the next five years.

Tuscaloosa Franchisee Brings New TAF to Community

Franchisee Tommy Wagner from Tuscaloosa, the first franchisee to implement the new store concept in his franchise, was in attendance at the Global Franchise Convention in June and liked what he saw.

"I knew when this new concept came about, I wanted to be part of it," Mr. Wagner commented regarding the prototype TAF store. "I was planning to open my fifth TAF location in the early fall of this year and, when I saw the new design and merchandising concept for the re-branded TAF, I felt it would be well worth a few weeks' wait to implement the new fixtures."

Wagner has been a TAF franchise owner for fifteen years and has twice been awarded the company's President's award for outstanding performance. He is a third-generation shoe retailer, whose grandfather was a salesman for a shoe manufacturer and whose father opened a family-run shoe store in Tuscaloosa in 1953. Wagner began working at the shoe store in high school, took over and grew the family business. When the popularity of performance athletic footwear began to skyrocket in the 1980s, Wagner decided to invest in The Athlete's Foot, opening his first store in 1992.

Based on Wagner's knowledge of his local community, the new Tuscaloosa TAF will feature performance and classic athletics styles -- creating a look, feel and product balance that he believes will resonate best with his core clientele. Located just miles from the University of Alabama in the Midtown Village at 1800 McFarland Boulevard, the store will offer locally relevant products, such as Crimson Tide attire, and will carry the new line of TAF branded apparel, taftec®, scheduled to launch in early spring.

In celebration of its grand opening, The Athlete's Foot retail stores in the five Alabama locations (Midtown Village, McFraland Mall, Shoppes at Northport, in Jasper and in Demopolis) will offer 20% off all shoes from November 15 through November 18.

Grand Opening Event To Benefit Charity

The store celebrates its grand opening from November 14 through November 18 with a series of private and public events, including a ribbon cutting with Tuscaloosa Mayor Walt Maddox and Northport Mayor Harvey Fretwell on Wednesday, November 14, a live radio broadcast from the store on Thursday, November 15 and the TAF Turkey Trot at Jaycee Park on Saturday, November 17.