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<SEC-DOCUMENT>0001206774-09-001747.txt : 20090910
<SEC-HEADER>0001206774-09-001747.hdr.sgml : 20090910
<ACCEPTANCE-DATETIME>20090910150029
ACCESSION NUMBER:		0001206774-09-001747
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20090801
FILED AS OF DATE:		20090910
DATE AS OF CHANGE:		20090910

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHOE CARNIVAL INC
		CENTRAL INDEX KEY:			0000895447
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-SHOE STORES [5661]
		IRS NUMBER:				351736614
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			0130

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21360
		FILM NUMBER:		091062578

	BUSINESS ADDRESS:	
		STREET 1:		7500 EAST COLUMBIA STREET
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47715
		BUSINESS PHONE:		8128676471

	MAIL ADDRESS:	
		STREET 1:		7500 EAST COLUMBIA STREET
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47715
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>shoecarnival_10q.htm
<DESCRIPTION>QUARTERLY REPORT
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>

<!-- Job#: 184566 -->
<P align=center><B><FONT face=serif size=2>UNITED STATES <BR></FONT></B><B><FONT face=serif size=2>SECURITIES AND EXCHANGE COMMISSION <BR></FONT></B><FONT face=serif size=2>Washington, D.C. 20549</FONT></P>
<P align=center><B><FONT face=serif size=2>Form 10-Q </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>[X]</FONT></B></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap align=left width="97%"><B><FONT face=serif size=2>Quarterly
      report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
      1934</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="97%"><FONT face=serif size=2>For the
      quarterly period ended&nbsp;&nbsp; </FONT><FONT face=serif size=2><STRONG>August 1, 2009</STRONG><FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="99%" colSpan=3><FONT face=serif size=2>or</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>[&nbsp;
      ]</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="97%"><B><FONT face=serif size=2>Transition
      report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
      1934</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="97%"><FONT face=serif size=2>For the
      transition period from __________________</FONT>&nbsp;<FONT face=serif size=2><B>to
</B>__________________<B>&nbsp;</B></FONT></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"><FONT face=serif size=2>Commission File
      Number:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="20%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      0-21360</FONT>&nbsp; </TD></TR></TABLE><BR></DIV>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="100%"><B><FONT face=serif size=2>Shoe Carnival, Inc.</FONT></B>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="100%"><I><FONT face=serif size=2>(Exact
      name of registrant as specified in its charter)</FONT></I>&nbsp;
  </TD></TR></TABLE></DIV>
<P align=justify><BR></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="47%"><B><FONT face=serif size=2>Indiana</FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="48%"><B><FONT face=serif size=2>35-1736614</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="47%"><I><FONT face=serif size=2>(State or
      other jurisdiction of</FONT></I>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="48%"><I><FONT face=serif size=2>(IRS
      Employer Identification Number)</FONT></I>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="47%"><I><FONT face=serif size=2>incorporation or organization)</FONT></I>&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="48%">&nbsp; </TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="47%"><B><FONT face=serif size=2>7500 East
      Columbia Street</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="48%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="47%"><B><FONT face=serif size=2>Evansville, IN</FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="48%"><B><FONT face=serif size=2>47715</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="47%"><I><FONT face=serif size=2>(Address of
      principal executive offices)</FONT></I>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="48%"><I><FONT face=serif size=2>(Zip
      code)</FONT></I>&nbsp; </TD></TR></TABLE></DIV>
<P align=justify><BR></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="100%"><B><FONT size=2>(812) <FONT face=serif>867-6471</FONT></FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="100%"><I><FONT face=serif size=2>(Registrant's telephone number, including area
      code)</FONT></I>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=center width="100%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="100%"><STRONG><FONT size=2>NOT APPLICABLE</FONT></STRONG>&nbsp;
  </TD></TR>
  <TR>
    <TD noWrap align=center width="100%"><EM><FONT size=2>(Former name, former
      address and former fiscal year, if changed since last
    report)</FONT></EM>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify><FONT face=serif size=2>Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR>
    <TD width="25%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap width="25%"><FONT size=2>[X]Yes</FONT></TD>
    <TD noWrap width="25%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap width="25%"><FONT size=2>[&nbsp;&nbsp; ]No
</FONT></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>Indicate by check mark whether the
registrant has submitted electronically and posted on its corporate website, if
any, every Interactive Data File required to be submitted and posted pursuant to
Rule 405 of Regulation S-T (&#167;232.405 of this chapter) during the preceding 12
months (or for such shorter period that the registrant was required to submit
and post such files). </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR>
    <TD width="25%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap width="25%"><FONT size=2>[&nbsp;&nbsp; ]Yes</FONT></TD>
    <TD noWrap width="25%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap width="25%"><FONT size=2>[&nbsp;&nbsp; ]No
</FONT></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer or a smaller reporting company. See definitions of "large accelerated
filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the
Exchange Act. (Check one): </FONT></P>
<P align=center><FONT face=serif size=2>[&nbsp;&nbsp; ] Large accelerated
filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [X] Accelerated
filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp;&nbsp; ] Non-accelerated
filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp;&nbsp; ] Smaller reporting company
</FONT></P>
<P align=justify><FONT face=serif size=2>Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR>
    <TD width="25%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap width="25%"><FONT size=2>[&nbsp;&nbsp; ]Yes</FONT></TD>
    <TD noWrap width="25%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap width="25%"><FONT size=2>[X]No </FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>APPLICABLE ONLY TO CORPORATE ISSUERS:
</FONT></P>
<P align=justify><FONT face=serif size=2>Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of the latest
practicable date. </FONT></P>
<P align=justify><FONT face=serif size=2>Number of Shares of Common Stock, $.01
par value, outstanding at September 4, 2009 were 12,942,563. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC.<BR>INDEX TO FORM
10-Q </FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%" ></TD>
    <TD noWrap align=left width="93%"></TD>
    <TD noWrap align=right width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"><B><FONT face=serif size=2>Page</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>Part
      I</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>Financial Information</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Item 1.</FONT></TD>
    <TD noWrap align=left width="2%" ></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>Financial Statements
      (Unaudited)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0 colSpan=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Condensed Consolidated Balance
      Sheets</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="96%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Condensed Consolidated Statements of
      Income</FONT></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>4</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0 colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Condensed Consolidated Statement of
      Shareholders' Equity</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="96%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Condensed Consolidated Statements of Cash
      Flows</FONT></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0 colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Notes to Condensed Consolidated Financial
      Statements</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>7 - 14</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>Item
      2.</FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Management's Discussion and Analysis of Financial
      Condition</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and Results of
      Operations</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>15 - 22</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>Item
      3.</FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Quantitative and Qualitative Disclosures About Market
      Risk</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>22</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>Item
      4.</FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Controls and Procedures</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>22</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>Part
      II</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>Other
      Information</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Item 1.</FONT></TD>
    <TD noWrap align=left width="2%" ></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>Legal
Proceedings</FONT></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>23</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>Item
      1A.</FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Risk
      Factors</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>23</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>Item
      4.</FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Submission of Matters to a Vote of Security
    Holders</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>23</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>Item
      6.</FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Exhibits</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>24 - 25</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>Signature</FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>26</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>2</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC.<BR>PART I -
FINANCIAL INFORMATION </FONT></B></P>
<P align=left><B><FONT face=serif size=2>ITEM 1. FINANCIAL
STATEMENTS</FONT></B></P>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL,
INC.</FONT></B><BR><B><FONT face=serif size=2>CONDENSED CONSOLIDATED BALANCE
SHEETS<BR>Unaudited</FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="82%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>January 31,</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>August 2,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>(In thousands,
      except per share data)</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Current
      Assets:</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cash and cash equivalents</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>17,673</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>24,817</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>16,659</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Accounts receivable</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,948</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,607</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,961</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Merchandise inventories</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>216,728</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>189,494</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>208,409</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Deferred income tax benefit</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>2,424</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>2,305</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>2,481</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,540</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,234</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,920</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Total Current
      Assets</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>246,313</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>222,457</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>237,430</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Property and equipment-net</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>66,054</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>70,217</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>71,014</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Other</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,627</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>400</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>463</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Total Assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>313,994</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>293,074</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>308,907</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=12>&nbsp;</TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Liabilities and Shareholders' Equity</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Current
      Liabilities:</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Accounts payable</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>73,475</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>60,320</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>74,953</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accrued and other liabilities</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>13,712</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>11,600</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>14,546</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Total Current Liabilities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>87,187</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>71,920</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>89,499</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Deferred lease
      incentives</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>5,791</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>5,844</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>4,735</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Accrued rent</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,155</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,331</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,626</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Deferred income
      taxes</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>905</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,144</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>917</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Deferred compensation</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,187</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,678</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,395</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Other</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,858</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,521</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,410</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Total Liabilities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>104,083</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>88,438</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>105,582</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=12>&nbsp;</TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Shareholders' Equity:</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Common stock, $.01 par value, 50,000
    shares</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>authorized, 13,655, 13,664 and 13,664 shares
      issued at</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>August 1, 2009, January 31, 2009 and August 2,
      2008,</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>respectively</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>137</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>137</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>137</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Additional paid-in capital</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>67,428</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>67,686</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>72,821</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Retained earnings</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>158,980</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>153,866</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>154,308</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Treasury stock, at cost, 726, 745 and 1,045 shares at</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>August 1, 2009, January 31, 2009 and August 2,
      2008,</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>respectively</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(16,634</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>)</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(17,053</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>)</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(23,941</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>)</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Total
      Shareholders' Equity</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>209,911</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>204,636</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>203,325</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Total Liabilities and Shareholders' Equity</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>313,994</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>293,074</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>308,907</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>See notes to condensed consolidated
financial statements.</FONT></P>
<P align=center><FONT face=serif size=2>3</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL,
INC.</FONT></B><BR><B><FONT face=serif size=2>CONDENSED CONSOLIDATED STATEMENTS
OF INCOME<BR>Unaudited</FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>Twenty-six</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>Twenty-six</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>Weeks Ended</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>August 2,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>August 2,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=serif size=2>(In thousands, except per share
      data)</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>2008</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=3><FONT face=serif size=2>2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=serif size=2>Net
      sales</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>152,840</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>158,480</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>320,109</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>320,599</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=serif size=2>Cost of sales (including
      buying,</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>distribution and occupancy
      costs)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>111,916</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>116,334</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>232,545</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>231,373</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=serif size=2>Gross
      profit</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>40,924</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>42,146</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>87,564</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>89,226</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=serif size=2>Selling, general and
      administrative</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>expenses</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>39,020</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>40,661</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>79,076</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>79,984</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=serif size=2>Operating income</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>1,904</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1,485</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>8,488</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>9,242</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=serif size=2>Interest income</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>(1</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(39</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>(4</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>(76</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=serif size=2>Interest expense</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>42</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>36</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>84</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>69</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=serif size=2>Income before income
      taxes</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>1,863</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1,488</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>8,408</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>9,249</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax expense</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>881</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>511</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>3,294</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>3,488</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=serif size=2>Net income</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%"><FONT face=serif size=2>982</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>977</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%"><FONT face=serif size=2>5,114</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%"><FONT face=serif size=2>5,761</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=17>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=serif size=2>Net
      income per share:</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Basic</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%"><FONT face=serif size=2>.08</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>.08</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%"><FONT face=serif size=2>.41</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%"><FONT face=serif size=2>.47</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Diluted</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>.08</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>.08</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>.41</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>.46</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR>
    <TD width="100%" colSpan=17>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=serif size=2>Average shares outstanding:</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Basic</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%"><FONT face=serif size=2>12,487</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>12,367</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%"><FONT face=serif size=2>12,483</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%"><FONT face=serif size=2>12,360</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Diluted</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,569</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>12,463</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,543</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,455</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>See notes to condensed consolidated
financial statements. </FONT></P>
<P align=center><FONT face=serif size=2>4</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL,
INC.<BR></FONT></B><B><FONT face=serif size=2>CONDENSED CONSOLIDATED STATEMENT
OF SHAREHOLDERS' EQUITY<BR>Unaudited </FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>Additional</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="16%"  colSpan=10><FONT face=serif size=2>Common Stock</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>Paid-In</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Retained</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>Treasury</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>(In thousands)</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"  colSpan=3><FONT face=serif size=2>Issued</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"  colSpan=3><FONT face=serif size=2>Treasury</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Amount</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>Capital</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Earnings</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>Stock</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>Total</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><FONT face=serif size=2>Balance at January 31, 2009</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,664</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(745</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>137</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>67,686</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>153,866</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(17,053</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>204,636</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Stock option
      exercises</FONT></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>5</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(93</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%">&nbsp;</TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>115</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>22</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><FONT face=serif size=2>Stock-based compensation</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>income tax benefit</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>57</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>57</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Employee stock purchase
      plan</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="3%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>purchases</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>10</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(122</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>206</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>84</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><FONT face=serif size=2>Restricted stock awards</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(9</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(98</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>98</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Stock-based
      compensation</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>income</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(2</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(2</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><FONT face=serif size=2>Net
      income</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,114</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,114</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Balance at August 1,
      2009</FONT></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>13,655</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(726</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>137</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>67,428</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>158,980</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(16,634</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>209,911</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>See notes to condensed consolidated
financial statements. </FONT></P>
<P align=center><FONT face=serif size=2>5</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC.</FONT></B>
<BR><B><FONT face=serif size=2>CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS<BR>Unaudited</FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="11%" colSpan=3><FONT face=serif size=2>Twenty-six</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="11%" colSpan=3><FONT face=serif size=2>Twenty-six</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="11%" colSpan=3><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="11%" colSpan=3><FONT face=serif size=2>Weeks Ended</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="11%" colSpan=3><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="11%" colSpan=3><FONT face=serif size=2>August 2,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>(In thousands)</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=3><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=3><FONT face=serif size=2>2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Cash
      Flows From Operating Activities</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>5,114</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>5,761</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Adjustments to reconcile net income
      to net</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>cash (used in)
      provided by operating activities:</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Depreciation and
      amortization</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>7,590</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>8,286</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Stock-based
      compensation</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>220</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>559</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Loss on retirement
      and impairment of assets</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>57</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>109</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Deferred income
      taxes</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(358</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>377</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Lease
      incentives</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>715</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>174</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Other</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(320</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(1,135</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Changes in operating
      assets and liabilities:</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="8%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="8%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Accounts
      receivable</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(241</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(1,550</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Merchandise
      inventories</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>(27,234</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>(7,628</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Accounts payable and
      accrued liabilities</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>15,045</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>9,992</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Other</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face=serif size=2>(2,538</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face=serif size=2>(1,164</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Net
      cash (used in) provided by operating activities</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(1,950</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>13,781</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=9>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Cash
      Flows From Investing Activities</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Purchases of property and
      equipment</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>(5,474</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>(6,700</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Proceeds from sale of property and
      equipment</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Proceeds from note
    receivable</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face=serif size=2>100</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face=serif size=2>0</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Net
      cash used in investing activities</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(5,366</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(6,698</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=9>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Cash
      Flows From Financing Activities</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Borrowings under line of
    credit</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>6,625</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on line of
      credit</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(6,625</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from
      issuance of stock</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>106</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>399</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess tax benefits
      from stock-based compensation</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>66</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>Net cash provided by
      financing activities</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face=serif size=2>172</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face=serif size=2>399</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Net
      (decrease) increase in cash and cash equivalents</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>(7,144</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>7,482</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>Cash and cash equivalents
      at beginning of period</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face=serif size=2>24,817</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face=serif size=2>9,177</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Cash
      and Cash Equivalents at End of Period</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>17,673</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>16,659</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=9>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Supplemental disclosures of cash flow information:</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cash paid during period for
      interest</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>83</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>66</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cash paid during period for income
      taxes</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>180</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>2,927</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Capital expenditures incurred but not
      yet paid</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>912</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>3,092</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=9>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Supplemental disclosures of non-cash operating and investing
      activities:</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Forgiveness of accounts payable from
      litigation settlement <SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>1,160</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Recording of note receivable from
      litigation settlement <SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>1,200</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=1><SUP>(1)</SUP></FONT></TD>
    <TD vAlign=top noWrap ><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD width="100%"><FONT face=serif size=1>See Note 5 &#150; Litigation Matters for details of the
      settlement. Cumulative settlement served to reduce the value of originally
      acquired assets.</FONT></TD></TR></TABLE>
<P align=left><FONT face=serif size=2>See notes to condensed consolidated
financial statements.</FONT></P>
<P align=center><FONT face=serif size=2>6</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC.
<BR></FONT></B><B><FONT face=serif size=2>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</FONT></B><FONT face=serif size=2> <BR></FONT><B><FONT face=serif size=2>Unaudited</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 1 - Basis of
Presentation</FONT></B></P>
<P align=justify><FONT face=serif size=2>In our opinion, the accompanying
unaudited condensed consolidated financial statements contain all adjustments
necessary to present fairly our financial position and the results of our
operations and our cash flows for the periods presented. Certain information and
disclosures normally included in the notes to consolidated financial statements
have been condensed or omitted according to the rules and regulations of the
Securities and Exchange Commission (the "SEC"), although we believe that the
disclosures are adequate to make the information presented not misleading. The
results of operations for the interim periods are not necessarily indicative of
the results to be expected for the full year. The condensed consolidated
financial statements should be read in conjunction with the audited consolidated
financial statements and the notes thereto contained in our Annual Report on
Form 10-K for the fiscal year ended January 31, 2009.</FONT></P>
<P align=justify><FONT face=serif size=2>We determined that certain deposits and
pre-paid expenses totaling $1.6 million as of August 1, 2009 would not be
utilized within the next 12 months and should be classified as long-term.
Therefore, we have presented these amounts as Other in the long-term section of
our condensed consolidated balance sheet. Similar assets in the amount of
$400,000 and $463,000 as of January 31, 2009 and August 2, 2008, respectively,
that had previously been classified as Other within Current Assets have been
presented as long-term in the accompanying comparative condensed consolidated
balance sheets.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 2 - Net Income Per
Share</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Net income per share of common stock is
based on the weighted average number of shares and common share equivalents
outstanding during the period. The following table presents a reconciliation of
our basic and diluted weighted average common shares outstanding as required by
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per
Share": </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>Twenty-six</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>Twenty-six</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>Weeks Ended</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>August 2,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=2>August 2,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>(In thousands)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=2>2008</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=2>2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><FONT face=serif size=2>Basic
      shares</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,487</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,367</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,483</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,360</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Dilutive effect of
      stock-based awards</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>82</FONT></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>96</FONT></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>60</FONT></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>95</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><FONT face=serif size=2>Diluted shares</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,569</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,463</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,543</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>12,455</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Options to purchase 410,400 shares of
common stock for the second quarter of fiscal 2009 and options to purchase
413,200 shares of common stock for the first six months of fiscal 2009 were not
included in the computation of diluted shares because the options' exercise
prices were greater than the average market price of our common stock for the
period. Options to purchase 227,100 shares of common stock for the second
quarter of fiscal 2008 and options to purchase 220,300 shares of common stock
for the first six months of fiscal 2008 were not included in the computation of
diluted shares because the options' exercise prices were greater than the
average market price of our common stock for the period.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 3 &#150; Recently Issued Accounting
Pronouncements </FONT></B></P>
<P align=justify><FONT face=serif size=2>In September 2006, the Financial
Accounting Standards Board (the "FASB") issued SFAS No. 157, "Fair Value
Measurements" ("SFAS No. 157"). SFAS No. 157 defines fair value, establishes a
framework for measuring fair value in generally accepted accounting principles,
and expands disclosures about fair value measurements. The provisions of SFAS
No. 157 are effective for fiscal years beginning after November 15, 2007. In
February 2008, the FASB deferred the implementation of SFAS No. 157 for certain
non-financial assets and liabilities for fiscal </FONT><FONT face=serif size=2>years beginning after November 15, 2008. We adopted the provisions of
SFAS No. 157 for financial assets and liabilities on February 3, 2008 and
adopted the provisions of SFAS No. 157 for non-financial assets and liabilities
on February 1, 2009. The adoption of SFAS No. 157 did not have a material impact
on our condensed consolidated financial statements. See Note 6 &#150; "Fair Value
Measurements" to our notes to condensed consolidated financial statements.
</FONT></P>
<P align=center><FONT face=serif size=2>7</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>In December 2007, the FASB issued SFAS
No. 141R, "Business Combinations" ("SFAS No. 141R"). SFAS No. 141R requires an
acquirer to recognize the assets acquired, the liabilities assumed, and any
non-controlling interest in the acquired business at the acquisition date,
measured at their full fair values as of that date. We adopted the provisions of
SFAS No. 141R on February 1, 2009. The adoption of SFAS No. 141R did not have a
material impact on our condensed consolidated financial statements.</FONT></P>
<P align=justify><FONT face=serif size=2>In April 2008, the FASB issued
Financial Statement of Position ("FSP") No. FAS 142-3, "Determination of the
Useful Life of Intangible Assets" ("FSP No. FAS 142-3"), which amends the
factors that should be considered in developing renewal or extension assumptions
used to determine the useful life of a recognized intangible asset under FASB
Statement No. 142, "Goodwill and Other Intangible Assets". FSP No. FAS 142-3
allows an entity to use its own historical experience in renewing or extending
similar arrangements, adjusted for specified entity-specific factors, in
developing assumptions about renewal or extension used to determine the useful
life of a recognized intangible asset. Additional disclosures are required to
enable financial statement users to assess the extent to which the expected
future cash flows associated with the asset are affected by the entity&#146;s intent
and/or ability to renew or extend the arrangement. The guidance for determining
the useful life of a recognized intangible asset is to be applied prospectively
to intangible assets acquired after the effective date. The disclosure
requirements are to be applied prospectively to all intangible assets recognized
as of, and subsequent to, the effective date. We adopted the provisions of FSP
No. FAS 142-3 on February 1, 2009. The adoption of FSP No. FAS 142-3 did not
have a material impact on our condensed consolidated financial
statements.</FONT></P>
<P align=justify><FONT face=serif size=2>In April 2009, the FASB issued FSP No.
FAS 157-4, "Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly" ("FSP No. FAS 157-4"). FSP No. FAS 157-4 indicates that
when determining the fair value of an asset or liability that is not a Level 1
fair value measurement, an entity should assess whether the volume and level of
activity for the asset or liability have significantly decreased when compared
with normal market conditions. If the entity concludes that there has been a
significant decrease in the volume and level of activity, a quoted price (e.g.,
observed transaction) may not be determinative of fair value and may require a
significant adjustment. The adoption of FSP No. FAS 157-4 during the second
quarter of fiscal 2009 did not have a material impact on our condensed
consolidated financial statements. </FONT></P>
<P align=justify><FONT face=serif size=2>In April 2009, the FASB issued FSP No.
FAS 115-2 and FAS 124-2, "Recognition and Presentation of Other-Than-Temporary
Impairments" ("FSP No. FAS 115-2 and FAS 124-2"). FSP No. FAS 115-2 and FAS
124-2 modifies the requirements for recognizing other-than-temporarily impaired
debt securities and changes the existing impairment model for such securities.
It also modifies the presentation of other-than-temporary impairment losses and
increases the frequency of and expands already required disclosures about
other-than-temporary impairment for debt and equity securities. The adoption of
FSP No. FAS 115-2 and FAS 124-2 during the second quarter of fiscal 2009 did not
have a material impact on our condensed consolidated financial statements.
</FONT></P>
<P align=justify><FONT face=serif size=2>In April 2009, the FASB issued FSP No.
FAS 107-1 and APB 28-1, "Interim Disclosures about Fair Value of Financial
Instruments" ("FSP No. FAS 107-1 and APB 28-1"). FSP No. FSP FAS 107-1 and APB
28-1 requires publicly traded companies, as defined in Opinion No. 28, to
disclose the fair value of financial instruments within the scope of FAS No. 107
in interim financial statements, adding to the current requirement to make those
disclosures in annual financial statements. This staff position also requires
that companies disclose the method or methods and significant assumptions used
to estimate the fair value of financial instruments and a discussion of changes,
if any, in the method or methods and significant assumptions during the period.
The adoption of FSP No. FAS 107-1 and APB 28-1 during the second quarter of
fiscal 2009 did not have a material impact on our condensed consolidated
financial statements. </FONT></P>
<P align=center><FONT face=serif size=2>8</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>In May 2009, the FASB issued SFAS No.
165, "Subsequent Events" ("SFAS No. 165). SFAS No. 165 sets forth: 1) the period
after the balance sheet date during which management of a reporting entity
should evaluate events or transactions that may occur for potential recognition
or disclosure in the financial statements; 2) the circumstances under which an
entity should recognize events or transactions occurring after the balance sheet
date in its financial statements; and 3) the disclosures that an entity should
make about events or transactions that occurred after the balance sheet date.
SFAS No. 165 is effective for interim and annual periods ending after June 15,
2009. Subsequent events were evaluated through September 10, 2009, the date on
which the financial statements were issued. This assessment of subsequent events
did not reveal the occurrence of any material events or transactions.
</FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 4 - Stock-Based Compensation
</FONT></B></P>
<P align=justify><U><FONT face=serif size=2>Stock Options</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>The following table summarizes the
stock option transactions pursuant to the stock-based compensation plans for the
twenty-six week period ended August 1, 2009: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>Weighted-</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>Average</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Weighted-</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>Remaining</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Aggregate</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Number of</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Average</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>Contractual</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Intrinsic
  Value</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Shares</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Exercise Price</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif size=2>Term (Years)</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>(in thousands)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT face=serif size=2>Outstanding at January 31, 2009</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>526,168</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>12.77</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Grants</FONT></FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>0.00</FONT></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Forfeited or
    expired</FONT></FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(8,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>11.91</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Exercised</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>(5,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>4.38</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%">&nbsp;</TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Outstanding August 1,
      2009</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>513,168</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>12.87</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>3.40</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>671</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT face=serif size=2>Options outstanding at
      August 1, 2009,</FONT></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>net of estimated forfeitures</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%"><FONT face=serif size=2>511,319</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%"><FONT face=serif size=2>12.87</FONT></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>3.38</FONT></TD>
    <TD noWrap align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>670</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT face=serif size=2>Exercisable at August 1, 2009</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;479,001</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>12.88</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>3.03</FONT></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>649</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The total fair value at grant date of
previously non-vested stock options that vested during the twenty-six week
periods ended August 1, 2009 and August 2, 2008 were $32,000 and $6,000,
respectively.</FONT></P>
<P align=justify><FONT face=serif size=2>No stock options were granted during
the first half of fiscal 2009. The weighted-average fair value of options
granted was $6.46 during the first half of fiscal 2008. The fair value of
options granted during the first half of fiscal 2008 was estimated at grant date
using a Black-Scholes option-pricing model with the following weighted-average
assumptions: </FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2008<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>Risk
      free interest rate<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3.1<FONT size=3>
      </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT face=serif size=2>Expected dividend
      yield<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>0.0<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>%<FONT size=3>
      </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>Expected volatility<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>45.39<FONT size=3>
      </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT face=serif size=2>Expected term</FONT> </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>5 Years<FONT size=3>
      </FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face=serif size=2>The risk free interest rate was based
on the U.S. Treasury yield curve in effect at the time of the grant. We had not
paid and did not anticipate paying cash dividends; therefore, the expected
dividend yield was assumed to be zero. Expected volatility was based on the
historical volatility of our stock. The expected term of the options was based
on our historical option exercise data taking into consideration the exercise
and forfeiture patterns of the class of option holders during the option&#146;s life.
</FONT></P>
<P align=center><FONT face=serif size=2>9</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>The following table summarizes
information regarding options exercised:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 2,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 2,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2008</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Total
      intrinsic value&nbsp;<SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>38,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>38,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>26,600</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Total cash
    received</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>22,000</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>22,000</FONT></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>291,800</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Associated excess income tax benefits</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>recorded</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>66,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>66,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,000</FONT></TD></TR></TABLE><BR>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="1%"><FONT size=2>(1)</FONT></TD>
    <TD vAlign=top width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="97%">
      <P align=justify><FONT face=serif size=2>Defined as the difference between
      the market value at exercise and the grant price of stock options
      exercised.</FONT></P></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>The following table summarizes
information regarding outstanding and exercisable options at August 1, 2009:
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%"></TD>
    <TD noWrap align=center width="4%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="51%" colSpan=6><FONT face=serif size=2>Options Outstanding</FONT></TD>
    <TD noWrap align=center width="4%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="29%" colSpan=4><FONT face=serif size=2>Options Exercisable</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%"></TD>
    <TD noWrap align=center width="4%" ></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>Number</FONT></TD>
    <TD noWrap align=center width="3%" ></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>Weighted</FONT></TD>
    <TD align=center width="4%" ></TD>
    <TD align=center width="14%" colSpan=2><FONT face=serif size=2>Weighted</FONT></TD>
    <TD noWrap align=center width="4%" ></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>Number</FONT></TD>
    <TD noWrap align=center width="4%" ></TD>
    <TD noWrap align=center width="10%" colSpan=2><FONT face=serif size=2>Weighted</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="12%" colSpan=2><FONT face=serif size=2>Range of</FONT></TD>
    <TD noWrap align=center width="4%" ></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>of Options</FONT></TD>
    <TD noWrap align=center width="3%" ></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>Average</FONT></TD>
    <TD align=center width="4%" ></TD>
    <TD align=center width="14%" colSpan=2><FONT face=serif size=2>Average</FONT></TD>
    <TD noWrap align=center width="4%" ></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>of Options</FONT></TD>
    <TD noWrap align=center width="4%" ></TD>
    <TD noWrap align=center width="10%" colSpan=2><FONT face=serif size=2>Average</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="12%" colSpan=2><FONT face=serif size=2>Exercise Price</FONT></TD>
    <TD noWrap align=center width="4%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><FONT face=serif size=2>Outstanding</FONT></TD>
    <TD noWrap align=center width="3%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><FONT face=serif size=2>Remaining Life</FONT></TD>
    <TD align=center width="4%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="14%" colSpan=2><FONT face=serif size=2>Exercise Price</FONT></TD>
    <TD noWrap align=center width="4%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><FONT face=serif size=2>Exercisable</FONT></TD>
    <TD noWrap align=center width="4%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=2><FONT face=serif size=2>Exercise Price</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="11%" bgColor=#c0c0c0><FONT face=serif size=2>4.38 &#150; 5.75</FONT></TD>
    <TD noWrap align=right width="4%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>56,162</FONT></TD>
    <TD noWrap align=center width="3%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="15%" bgColor=#c0c0c0><FONT face=serif size=2>1.33</FONT></TD>
    <TD noWrap align=right width="4%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="12%" bgColor=#c0c0c0><FONT face=serif size=2>4.46</FONT></TD>
    <TD noWrap align=right width="4%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>56,162</FONT></TD>
    <TD noWrap align=left width="4%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>4.46</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="11%"><FONT face=serif size=2>8.56 &#150; 12.14</FONT></TD>
    <TD noWrap align=right width="4%" ></TD>
    <TD noWrap align=right width="15%"><FONT face=serif size=2>102,585</FONT></TD>
    <TD noWrap align=center width="3%" ></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>4.06</FONT></TD>
    <TD noWrap align=right width="4%" >&nbsp;</TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="12%"><FONT face=serif size=2>10.36</FONT></TD>
    <TD noWrap align=right width="4%" ></TD>
    <TD noWrap align=right width="15%"><FONT face=serif size=2>80,918</FONT></TD>
    <TD noWrap align=left width="4%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>10.05</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="11%" bgColor=#c0c0c0><FONT face=serif size=2>12.67 &#150; 16.30</FONT></TD>
    <TD noWrap align=right width="4%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>196,801</FONT></TD>
    <TD noWrap align=center width="3%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="15%" bgColor=#c0c0c0><FONT face=serif size=2>4.23</FONT></TD>
    <TD noWrap align=right width="4%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="12%" bgColor=#c0c0c0><FONT face=serif size=2>13.16</FONT></TD>
    <TD noWrap align=right width="4%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>184,301</FONT></TD>
    <TD noWrap align=left width="4%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=serif size=2>13.07</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="11%"><FONT face=serif size=2>17.12</FONT></TD>
    <TD noWrap align=right width="4%" ></TD>
    <TD noWrap align=right width="15%"><FONT face=serif size=2>157,620</FONT></TD>
    <TD noWrap align=center width="3%" ></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>2.67</FONT></TD>
    <TD noWrap align=right width="4%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="12%"><FONT face=serif size=2>17.12</FONT></TD>
    <TD noWrap align=right width="4%" ></TD>
    <TD noWrap align=right width="15%"><FONT face=serif size=2>157,620</FONT></TD>
    <TD noWrap align=left width="4%" ></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="8%"><FONT face=serif size=2>17.12</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The following table summarizes
information regarding stock-based compensation expense recognized for non-vested
options: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 2,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 2,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2008</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#c0c0c0><FONT face=serif size=2>Stock-based compensation expense before</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>the recognized income tax
      benefit</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>19,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>22,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>40,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>37,000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><FONT face=serif size=2>Income tax
    benefit</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>9,000</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>8,000</FONT></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>16,000</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>14,000</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>As of August 1, 2009, there was
approximately $120,500 of unrecognized compensation expense, net of estimated
forfeitures, remaining related to non-vested stock options. This expense is
expected to be recognized over a weighted-average period of 1.8 years.
</FONT></P>
<P align=justify><FONT face=serif size=2><U>Restricted Stock
Awards</U></FONT><FONT face=serif size=2></FONT></P>
<P align=justify><FONT face=serif size=2>The following table summarizes the
restricted share transactions for the twenty-six week period ended August 1,
2009: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weighted-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Number of</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Average Grant</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Shares</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Date Fair Value</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Non-vested at January 31, 2009</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>434,234</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15.97</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=serif size=2>Granted</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>4,284</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>12.26</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Released</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(1,034</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>12.49</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=serif size=2>Forfeited</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(1,500</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>21.64</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Non-vested at August 1, 2009</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;435,984</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15.92</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>10</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>The total fair value at grant date of
previously non-vested stock awards that vested during the first half of fiscal
2009 was $12,900. No previously non-vested stock awards vested during the first
half of fiscal 2008. The weighted-average grant date fair values of stock awards
granted during the twenty-six week periods ended August 1, 2009 and August 2,
2008 were $12.26 and $12.50, respectively. </FONT></P>
<P align=justify><FONT face=serif size=2>The following table summarizes
information regarding stock-based compensation expense (income) for restricted
stock awards: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 2,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 2,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2008</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Stock-based compensation expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>(income) before the recognized
      income</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>tax benefit</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>305,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>296,100</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(57,000)</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>503,000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Income tax benefit
      (expense)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>144,000</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>101,700</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(22,000)</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>189,700</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The $57,000 of income recorded during
the first half of fiscal 2009 was comprised of compensation expense of $596,000
offset by income of $653,000. The income was attributable to the first quarter
reversal of the cumulative prior period expense for performance-based awards
which now have been deemed by management as not probable of vesting. </FONT></P>
<P align=justify><FONT face=serif size=2>As of August 1, 2009, there was
approximately $3.5 million of unrecognized compensation expense remaining
related to both the performance-based and service-based non-vested stock awards.
The expense is expected to be recognized over a weighted average period of 2.8
years. This incorporates the current assumptions of the estimated requisite
service period required to achieve the designated performance conditions for
performance-based stock awards. </FONT></P>
<P align=justify><U><FONT face=serif size=2>Cash-Settled Stock Appreciation
Rights (SARs)</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Cash-settled stock appreciation rights
(SARs) were granted to non-executive employees in the fourth quarter of fiscal
2008 such that one-third of the shares underlying the SARs granted would vest
and become fully exercisable on each of the first three anniversaries of the
date of the grant and were assigned a five-year term from the date of grant.
Each SAR entitles the holder, upon exercise, to receive cash in the amount equal
to the closing price of our stock on the date of exercise less the exercise
price. The maximum amount paid, however, cannot exceed 100% of the exercise
price. In accordance with SFAS No. 123 (revised 2004), "Share-Based Payment"
("SFAS No. 123R"), cash-settled SARs are classified as Accrued and other
liabilities on the condensed consolidated balance sheet as of August 1, 2009 and
January 31, 2009. </FONT></P>
<P align=justify><FONT face=serif size=2>No previously non-vested SARs vested
nor were any SARs granted during the first half of fiscal 2009. The total number
of non-vested SARs and the weighted-average exercise price at both January 31,
2009 and August 1, 2009 was 157,000 and $9.72, respectively. The
weighted-average remaining contractual term for non-vested SARs at August 1,
2009 was 4.4 years. </FONT></P>
<P align=center><FONT face=serif size=2>11</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>SFAS No. 123R requires the fair value
of these liability awards be remeasured at each reporting period until the date
of settlement. Increases or decreases in compensation expense are recognized
over the vesting period, or immediately for vested awards. The weighted-average
fair value of outstanding, non-vested SARs awards was $4.15 as of August 1,
2009. The fair value was estimated using a trinomial lattice model with the
following assumptions: </FONT></P>
<DIV align=center>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="70%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>August 1, 2009</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Risk
      free interest rate yield curve</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>0.14% - 2.53%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face=serif size=2>Expected dividend
      yield</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>0.0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Expected volatility</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>59.34%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face=serif size=2>Maximum life</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>4.38 Years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Exercise multiple</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>1.7</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face=serif size=2>Maximum payout</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>$9.72</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Employee exit rate</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>2.2% -
  9.0%</FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face=serif size=2>The risk free interest rate was based
on the U.S. Treasury yield curve in effect at the end of the reporting period.
We had not paid and did not anticipate paying cash dividends; therefore, the
expected dividend yield was assumed to be zero. Expected volatility was based on
the historical volatility of our stock. The exercise multiple and employee exit
rate are based on historical option data. </FONT></P>
<P align=justify><FONT face=serif size=2>The following table summarizes
information regarding stock-based compensation expense recognized for SARs:
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Stock-based compensation expense before the
      recognized</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>income tax
    benefit</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>119,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>222,000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=serif size=2>Income tax
    benefit</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>56,000</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>87,000</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>As of August 1, 2009, there was
approximately $390,000 in unrecognized compensation expense related to
non-vested SARs. The expense is expected to be recognized over a
weighted-average period of 1.38 years. </FONT></P>
<P align=justify><U><FONT face=serif size=2>Employee Stock Purchase
Plan</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>The following table summarizes
information regarding stock-based compensation expense recognized for the
employee stock purchase plan: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 2,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 1,</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>August 2,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2008</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#c0c0c0><FONT face=serif size=2>Stock-based compensation expense before</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the recognized
      income tax benefit <SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>9,500</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15,000</FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>19,000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%"><FONT face=serif size=2>Income tax
    benefit</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>3,000</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>3,300</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>6,000</FONT></TD>
    <TD noWrap align=left width="1%" ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7,000</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top><FONT face=serif size=2>(1)</FONT></TD>
    <TD vAlign=top >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>Amounts are
      representative of the 15% discount employees are provided for purchases
      under the employee stock purchase plan.</FONT></TD></TR></TABLE>
<P align=justify><B><FONT face=serif size=2>Note 5 - Litigation Matters
</FONT></B></P>
<P align=justify><FONT face=serif size=2>On or about April 22, 2008, an
arbitration claim was filed by SDI Industries, Inc. ("SDI") against us with the
American Arbitration Association Western Case Management Center in Los Angeles,
California, captioned <I>SDI Industries, Inc.
(Claimant and Counter-Respondent) v. Shoe Carnival, Inc. (Respondent and
Counterclaimant),</I> in which SDI sought payment of $1.2
million of unpaid retainage, $700,000 for services not yet billed, plus
additional interest and legal fees. The retainage was withheld from progress
billings for work performed on our distribution center and was recorded in
accrued and other liabilities and fixed assets in our consolidated financial
statements. We filed a Counterclaim and Response in this matter, denying SDI's
claim, and seeking monetary damages of more than $3.0 million. We asserted that
SDI breached our contract with SDI ("Contract") due to its failure to deliver
our distribution center's material handling system pursuant to the
specifications of the Contract.</FONT></P>

<P align=center><FONT face=serif size=2>12</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<PAGE>

<P align=justify><FONT face=serif size=2>On May 30, 2009, the parties entered
into a settlement of the above matter. Under the terms of the settlement, SDI
agreed to forego collection of the $1.2 million in unpaid retainage and to pay
us $1.2 million towards the remediation of the distribution center's material
handling system. The $1.2 million will be paid in installments over seven years
and is evidenced by a promissory note secured by a standby letter of credit,
renewable annually, in an amount not less than $200,000 and by a security
interest in SDI's accounts receivable. In addition, both parties agreed to the
dismissal of all pending claims currently under arbitration. The installment due
on the promissory note within the next 12 months has been recorded in Accounts
receivable in our consolidated financial statements. The remaining balance of
the promissory note is recorded in Other as a non-current asset. SDI remitted
the first scheduled payment prior to the due date of July 1, 2009.</FONT></P>
<P align=justify><FONT face=serif size=2>Although the investment we made in the
distribution center will satisfy our distribution needs throughout fiscal 2009,
we have not achieved the productivity that we expect will be required based on
our plan for long-term store growth. We have contracted with another
distribution logistics company to provide recommendations to improve throughput
and will implement certain of these recommendations in the second half of fiscal
2009 and also possibly in fiscal 2010.</FONT></P>
<P align=justify><FONT face=serif size=2>We are involved in various other legal
proceedings incidental to the conduct of our business. While the outcome of any
legal proceeding is always uncertain, we do not currently expect that any such
proceedings will have a material adverse effect on our financial position or
results of operations. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 6 - Fair Value Measurements
</FONT></B></P>
<P align=justify><FONT face=serif size=2>As of February 1, 2009, SFAS No. 157
applies to both our financial and non-financial assets and liabilities. Although
the adoption of SFAS No. 157 had no impact on our financial position or results
of operations, it does result in additional disclosures regarding fair value
measurements.</FONT></P>
<P align=justify><FONT face=serif size=2>SFAS No. 157 provides guidance for
using fair value to measure assets and liabilities and only applies when other
standards require or permit the fair value measurement of assets and
liabilities. It does not expand the use of fair value measurements. SFAS No. 157
establishes a fair value hierarchy, which prioritizes the inputs used in
measuring fair value into three broad levels. </FONT></P>
<UL style="MARGIN-LEFT: 16px">
  <LI>
  <P align=justify><FONT face=sans-serif size=1></FONT><FONT face=serif size=2>Level 1 &#150; Quoted prices in active markets that are unadjusted and
  accessible at the measurement date for identical, unrestricted assets or
  liabilities;</FONT></P>
  <LI>
  <P align=justify><FONT face=serif size=2>Level 2 &#150; Quoted prices for identical
  assets and liabilities in markets that are not active, quoted prices for
  similar assets and liabilities in active markets or financial instruments for
  which significant inputs are observable, either directly or indirectly;
  and</FONT></P>
  <LI>
  <P align=justify><FONT face=serif size=2>Level 3 &#150; Prices or valuations that
  require inputs that are both significant to the fair value measurement and
  unobservable. </FONT></P></LI></UL>
<P align=justify><FONT face=serif size=2>Our financial assets as of August 1,
2009, January 31, 2009, and August 2, 2008 included cash and cash equivalents.
We did not have any financial liabilities measured at fair value for these
periods. The carrying value of cash and cash equivalents approximates fair value
due to its short-term nature and is considered a Level 1 fair value
measurement.</FONT></P>
<P align=center><FONT face=serif size=2>13</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>The following table summarizes our cash
and cash equivalents that are measured at fair value on a recurring basis as of
August 1, 2009, January 31, 2009, and August 2, 2008: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Quoted Prices</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Significant</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>in Active
Markets</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Other</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Significant</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>for</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Observable</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Unobservable</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Identical Assets</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Inputs</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Inputs</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>(In thousands)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>(Level 1)</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>(Level 2)</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>(Level 3)</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Total Fair Value</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>As of
      August 1, 2009</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Cash
    <SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>9,530</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>9,530</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Credit and debit card receivables <SUP>(2)</SUP></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>8,143</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>8,143</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>17,673</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>17,673</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>As of
      January 31, 2009</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Cash and short-term
      investments <SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>20,920</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>20,920</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Credit and debit card receivables <SUP>(2)</SUP></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,897</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,897</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>24,817</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>24,817</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>As of
      August 2, 2008</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Cash and short-term
      investments <SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7,011</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7,011</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Credit and debit card receivables <SUP>(2)</SUP></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>9,648</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>9,648</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>16,659</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>16,659</FONT> </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face=serif size=1>Cash and short-term investments
      represents cash deposits and short-term investments held with financial
      institutions. The cash balances held in bank operating accounts are
      covered by the Federal Deposit Insurance Corporation Transaction Account
      Guarantee Program. Through the end of the period, non-interest bearing
      checking accounts and certain low interest transaction accounts are fully
      guaranteed for the entire amount in the account. To date, we have
      experienced no loss or lack of access to either invested cash or cash held
      in our operating accounts. Short-term investments consist of investments
      in a money market account and commercial paper that accrue interest on a
      periodic basis.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=1>(2)</FONT></TD>
    <TD width="100%"><FONT face=serif size=1>Our credit and debit card
      receivables are highly liquid financial assets that typically settle in
      less than three days.</FONT></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>We did not have any fair value
measurements for our non-financial assets and liabilities during the quarter or
first half of fiscal 2009. </FONT></P>
<P align=center><FONT face=serif size=2>14</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top noWrap width="1%">
      <P align=justify><B><FONT face=serif size=2>ITEM
2.&nbsp;</FONT></B></P></TD>
    <TD vAlign=top width="99%">
      <P align=justify><B><FONT face=serif size=2>MANAGEMENT'S DISCUSSION AND
      ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    </FONT></B></P></TD></TR></TABLE>
<P align=justify><B><FONT face=serif size=2>Factors That May Effect Future
Results</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>This Quarterly Report on Form 10-Q
contains forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995, that involve a number of risks and
uncertainties. A number of factors could cause our actual results, performance,
achievements or industry results to be materially different from any future
results, performance or achievements expressed or implied by these
forward-looking statements. These factors include, but are not limited to:
general economic conditions in the areas of the United States in which our
stores are located; the effects and duration of the current economic downturn
and the ailing credit markets; changes in the overall retail environment and
more specifically in the apparel and footwear retail sectors; our ability to
generate increased sales at our stores; the potential impact of national and
international security concerns on the retail environment; changes in our
relationships with key suppliers; the impact of competition and pricing; changes
in weather patterns, consumer buying trends and our ability to identify and
respond to emerging fashion trends; the impact of disruptions in our
distribution or information technology operations; the effectiveness of our
inventory management; the impact of hurricanes or other natural disasters on our
stores, as well as on consumer confidence and purchasing in general; risks
associated with the seasonality of the retail industry; our ability to
successfully execute our growth strategy, including the availability of
desirable store locations at acceptable lease terms, our ability to open new
stores in a timely and profitable manner and the availability of sufficient
funds to implement our growth plans; higher than anticipated costs associated
with the closing of underperforming stores; the inability of manufacturers to
deliver products in a timely manner; changes in the political and economic
environments in the People&#146;s Republic of China, Brazil, Spain and East Asia, the
primary manufacturers of footwear; and the continued favorable trade relations
between the United States and China and the other countries which are the major
manufacturers of footwear. For a more detailed discussion of certain risk
factors see the "Risk Factors" section of our Annual Report on Form 10-K for the
fiscal year ended January 31, 2009. </FONT></P>
<P align=justify><B><FONT face=serif size=2>General </FONT></B></P>
<P align=justify><FONT face=serif size=2>Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations is intended to provide information
to assist the reader in better understanding and evaluating our financial
condition and results of operations. We encourage you to read this in
conjunction with our condensed consolidated financial statements and the notes
to those statements included in PART I, ITEM 1. FINANCIAL STATEMENTS of this
Quarterly Report on Form 10-Q, as well as our Annual Report on Form 10-K for the
fiscal year ended January 31, 2009 as filed with the SEC. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Overview of Our
Business</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Shoe Carnival, Inc. is one of the
nation&#146;s largest family footwear retailers. As of August 1, 2009, we operated
314 stores in 29 states primarily in the Midwest, South and Southeast regions of
the United States. We offer a distinctive shopping experience, a broad
merchandise assortment and value to our customers while maintaining an efficient
store level cost structure.</FONT></P>
<P align=justify><FONT face=serif size=2>Our stores combine competitive pricing
with a highly promotional, in-store marketing effort that encourages customer
participation and creates a fun and exciting shopping experience. We believe
this highly promotional atmosphere results in various competitive advantages,
including increased multiple unit sales; the building of a loyal, repeat
customer base; the creation of word-of-mouth advertising; and enhanced sell
through of in-season goods. Our objective is to be the destination
store-of-choice for a wide range of consumers seeking moderately priced, current
season name brand and private label footwear. Our product assortment includes
dress and casual shoes, sandals, boots and a wide assortment of athletic shoes
for the entire family. We believe that by offering a wide selection of both
athletic and non-athletic footwear, we are able to reduce our exposure to shifts
in fashion preferences between those categories.</FONT></P>
<P align=center><FONT face=serif size=2>15</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>Our marketing effort targets moderate
income, value-conscious consumers seeking name brand footwear for all age
groups. We believe that by offering a wide selection of popular styles of name
brand merchandise at competitive prices, we generate broad customer appeal. Our
cost-efficient store operations and real estate strategy enable us to price
products competitively. Low labor costs are achieved by housing merchandise
directly on the selling floor in an open-stock format, enabling customers to
serve themselves, if they choose. This reduces the staffing required to assist
customers and reduces store level labor costs as a percentage of sales. We
locate stores predominantly in strip shopping centers in order to take advantage
of lower occupancy costs and maximize our exposure to value-oriented shoppers.
</FONT></P>
<P align=justify><B><FONT face=serif size=2>Critical Accounting Policies
</FONT></B></P>
<P align=justify><FONT face=serif size=2>It is necessary for us to include
certain judgments in our reported financial results. These judgments involve
estimates that are inherently uncertain and actual results could differ
materially from these estimates. The accounting policies that require the more
significant judgments are: </FONT></P>
<P align=justify><I><FONT face=serif size=2>Merchandise
Inventories</FONT></I><FONT face=serif size=2> - Merchandise inventories are
stated at the lower of cost or market using the first-in, first-out (FIFO)
method. In determining market value, we estimate the future sales price of items
of merchandise contained in the inventory as of the balance sheet date. Factors
considered in this determination include, among others, current and recently
recorded sales prices, the length of time product has been held in inventory and
quantities of various product styles contained in inventory. The ultimate amount
realized from the sale of certain product could differ materially from our
estimates. We also estimate a shrinkage reserve for the period between the last
physical count and the balance sheet date. The estimate for the shrinkage
reserve can be affected by changes in merchandise mix and changes in actual
shrinkage trends. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Valuation of Long-Lived
Assets</FONT></I><FONT face=serif size=2> - We review long-lived assets whenever
events or circumstances indicate the carrying value of an asset may not be
recoverable and annually when no such event has occurred. We evaluate the
ongoing value of assets associated with retail stores that have been open longer
than one year. When events such as these occur, the assets subject to impairment
are adjusted to estimated fair value and, if applicable, an impairment loss is
recorded in selling, general and administrative expenses. Our assumptions and
estimates used in the evaluation of impairment, including current and future
economic trends for stores, are subject to a high degree of judgment and if
actual results or market conditions differ from those anticipated, additional
losses may be recorded. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Income Taxes</FONT></I><FONT face=serif size=2> - We calculate income taxes in accordance with SFAS No. 109,
"Accounting for Income Taxes" ("SFAS No. 109") and account for uncertain tax
positions in accordance with Interpretation No. 48, "Accounting for Uncertainty
in Income Taxes &#150; an interpretation of Financial Accounting Standards Board
("FASB") Statement No. 109" ("FIN 48"). Under SFAS No. 109, deferred tax assets
and liabilities are recognized based on the difference between the consolidated
financial statement carrying amounts of existing assets and liabilities and
their respective tax basis. Deferred tax assets and liabilities are measured
using the estimated tax rates in effect in the years when those temporary
differences are expected to reverse. Under FIN 48, we are required to make many
subjective assumptions and judgments regarding our income tax exposures.
Interpretations of and guidance surrounding income tax laws and regulations are
often complex, ambiguous and change over time. As such, changes in our
subjective assumptions and judgments can materially affect amounts recognized in
the consolidated financial statements. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Insurance Reserves</FONT></I><FONT face=serif size=2> - We use a combination of self-insurance and third-party
insurance for workers' compensation, employee medical and general liability
insurance. These plans have stop-loss provisions that protect us from individual
and aggregate losses over specified dollar values. When estimating our
self-insured liabilities, we consider a number of factors, including historical
claims experience, severity factors, statistical trends and, in certain
instances, valuation assistance provided by independent third-parties. We will
continue to evaluate our self-insured liabilities and the underlying assumptions
on a quarterly basis and make adjustments as needed. The ultimate cost of these
claims may be greater than or less than the established accruals. While we
believe that the recorded amounts are adequate, there can be no assurance that
changes to management's estimates will not occur due to limitations inherent in
the estimating process. In the event we determine an accrual should be increased
or reduced, we will record such adjustments in the period in which such
determination is made. </FONT></P>
<P align=center><FONT face=serif size=2>16</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>Results of Operations Summary
Information</FONT></B><FONT face=serif size=2> </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" colSpan=2></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%" colSpan=7><FONT face=serif size=2>Number of Stores</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>Store Square Footage</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" colSpan=2></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>Beginning</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>End of</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>Net</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>End</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Comparable</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%"><FONT face=serif size=2>Quarter Ended</FONT></TD>
    <TD noWrap align=left width="66%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>Of Period</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>Opened</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>Closed</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>Period</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>Change</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>of Period</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Store Sales</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>May
      2, 2009</FONT></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>304</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>313</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>78,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,413,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(0.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" colSpan=2><FONT face=serif size=2>August 1, 2009</FONT></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>313</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>2</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>1</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>314</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>6,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>3,419,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(6.4</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Year-to-date 2009</FONT></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>304</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>12</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>314</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>84,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,419,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(3.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)%</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=16>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>May
      3, 2008</FONT></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>291</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>293</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>16,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,254,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(4.9</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" colSpan=2><FONT face=serif size=2>August 2, 2008</FONT></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>293</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>12</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>2</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>303</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>87,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>3,341,000</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(1.0</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Year-to-date 2008</FONT></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>291</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>303</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>103,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,341,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(3.0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)%</FONT> </TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Comparable store sales for the periods
indicated include stores that have been open for 13 full months prior to the
beginning of the period, including those stores that have been relocated or
remodeled. Therefore, stores opened or closed during the periods indicated are
not included in comparable store sales. </FONT></P>
<P align=justify><FONT face=serif size=2>The following table sets forth our
results of operations expressed as a percentage of net sales for the periods
indicated: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Thirteen</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Twenty-six</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Weeks Ended</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>August 1, 2009</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>August 2, 2008</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>August 1, 2009</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>August 2, 2008</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=2>Net
      sales</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>100.0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>100.0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>100.0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>100.0</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>Cost of sales (including
      buying,</FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;distribution
      and occupancy costs)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>73.2</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>73.4</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>72.6</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>72.2</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=2>Gross
      profit</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>26.8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>26.6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>27.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>27.8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>Selling, general
    and</FONT></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;administrative
      expenses</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>25.6</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>25.7</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>24.7</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>24.9</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=2>Operating income</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.9</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2.7</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2.9</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>Interest income</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>0.0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>0.0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>0.0</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>0.0</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=2>Interest expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.0</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.0</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.0</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>Income before income
      taxes</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1.2</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>0.9</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>2.6</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>2.9</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.6</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1.0</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1.1</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face=serif size=2>Net income</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>0.6</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>0.6</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>1.6</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>1.8</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>Operational Summary </FONT></B></P>
<P align=justify><FONT face=serif size=2>While consumer spending and the overall
economic environment remained challenging in the second quarter of fiscal 2009,
we were able to improve our year-over-year gross and operating margins for the
second quarter and, therefore, record earnings per share equal to last year. We
believe these results demonstrate the strength of our business model and our
ability to effectively manage the controllable aspects of our business,
particularly operating expenses, inventory, and our marketing and merchandising
strategies.</FONT></P>
<P align=justify><FONT face=serif size=2>Our net sales declined in the second
quarter of fiscal 2009, compared to the prior year, primarily due to a decline
in customer traffic. Comparable store sales fell 6.4%. We believe the absence
of government stimulus checks, which were provided to consumers during the
second quarter last year, was one of the contributing factors for the decline in
traffic. In addition, sales-tax-free holidays in nine of our states shifted from
the second quarter, where they were reported in fiscal 2008, into the third
quarter this year. The shift in these sales-tax-free holidays, which have
historically created a significant incentive for the consumer to shop, accounted
for approximately 2% of our comparable store sales decline for the second
quarter of fiscal 2009. </FONT></P>
<P align=center><FONT face=serif size=2>17</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>During the first quarter of fiscal
2009, we undertook an aggressive liquidation within our non-athletic categories
which positioned us with a fresher product assortment for the second quarter. As
a result, we were able to achieve an increase in the average net price and gross
margin of our footwear during the second quarter of fiscal 2009 as compared to
the prior year. Our per-store inventories at the end of the second quarter were
approximately flat as compared to the end of the second quarter of fiscal 2008.
</FONT></P>
<P align=justify><FONT face=serif size=2>We tightly controlled selling, general
and administrative expenses during the second quarter of fiscal 2009. This
resulted in year-over-year savings of $1.7 million, despite opening two new
stores during the quarter and operating 11 more stores than the same period last
year. Approximately 30% of this savings was due to shifting a portion of our
advertising into the third quarter to coincide with the shift in sales-tax-free
holidays. </FONT></P>
<P align=justify><FONT face=serif size=2>We experienced a favorable start to the
third quarter of fiscal 2009, as the consumer responded well to both our
athletic and non-athletic product assortments to satisfy their back-to-school
needs. While considerable uncertainty remains regarding discretionary spending
by consumers after the back-to-school period, we remain optimistic about our
sales trend for the third quarter of fiscal 2009. Our management team has been
through many economic cycles and we will continue to conservatively manage the
controllable aspects of our business until we have better clarity with respect
to a sustained economic recovery.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Results of Operations for the Second
Quarter Ended August 1, 2009 </FONT></B></P>
<P align=justify><I><FONT face=serif size=2>Net Sales</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Net sales decreased $5.7 million to
$152.8 million during the second quarter ended August 1, 2009, a 3.6% decrease
from the prior year's second quarter net sales of $158.5 million. The decrease
in net sales was due to a comparable store sales decline of 6.4% in addition to
the loss of sales from the 13 stores closed since the beginning of the second
quarter of last year. Approximately 2% of the comparable store sales decline was
attributable to the sales-tax-free holiday shift that occurred in nine of our
states. These sales-tax-free holidays shifted from the second quarter, where
they were reported in fiscal 2008, into the third quarter this year. This
combined decrease was partially offset by an $8.1 million increase in sales
generated by the new stores opened since the beginning of the second quarter of
fiscal 2008. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Gross Profit </FONT></I></P>
<P align=justify><FONT face=serif size=2>Gross profit decreased $1.2 million to
$40.9 million in the second quarter of fiscal 2009 from gross profit of $42.1
million in the comparable prior year period. The gross margin in the second
quarter of fiscal 2009 increased 0.2% from the same period last year to 26.8%.
The merchandise margin increased 0.4%, largely as a result of efforts during the
first quarter to liquidate seasonal product and enter the second quarter of
fiscal 2009 with a fresher product assortment requiring less promotional
pricing. While occupancy costs increased as a result of operating an additional
11 stores at the end of the second quarter of fiscal 2009 compared to the prior
year, we were able to more than offset this increase through cost savings
initiatives within our buying and distribution functions. However, as a
percentage of sales, these costs increased 0.2% relative to the second quarter
of fiscal 2008 due to the decrease in net sales. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Selling, General and Administrative
Expenses </FONT></I></P>
<P align=justify><FONT face=serif size=2>Selling, general and administrative
expenses decreased $1.7 million in the second quarter of fiscal 2009 to $39.0
million, or 25.6% of sales, from $40.7 million, or 25.7% of sales, in the
comparable prior year period. Even though we operated an additional 11 stores at
the end of the second quarter of fiscal 2009 compared to the prior year period,
we were able to achieve expense savings in a number of store-level categories
including supplies, depreciation and advertising. Advertising decreased
$468,000, primarily due to the shift in the sales-tax-free holidays.</FONT></P>
<P align=justify><FONT face=serif size=2>Pre-opening costs included in selling,
general and administrative expenses were $153,000, or 0.1% of sales, for the
second quarter of fiscal 2009 as compared to $406,000, or 0.3% of sales, for the
second quarter of fiscal 2008. We opened two stores in the second quarter of
fiscal 2009 as compared to 12 stores in the second quarter of fiscal
2008.</FONT></P>
<P align=center><FONT face=serif size=2>18</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<PAGE>
<P align=justify><FONT face=serif size=2>Pre-opening costs, such as advertising,
payroll and supplies, incurred prior to the opening of a new store are charged
to expense in the period they are incurred. The total amount of pre-opening
expense incurred will vary by store depending on the specific market and the
promotional activities involved. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Interest (Income) Expense, Net
</FONT></I></P>
<P align=justify><FONT face=serif size=2>We recorded net interest expense of
$41,000 in the second quarter of fiscal 2009 as compared to net interest income
of $3,000 in the second quarter of the prior year. As returns available on
short-term investments fell to record lows, we held our excess funds in
non-interest bearing deposit accounts to offset bank service fees. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Income Taxes</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>The effective income tax rate for the
second quarter of fiscal 2009 increased to 47.3% from 34.3% for the second
quarter of fiscal 2008. During the second quarter of both fiscal years, our rate
was primarily impacted by the true up of the prior year estimated annual income
tax rate.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Results of Operations for the Six
Months Ended August 1, 2009 </FONT></B></P>
<P align=justify><I><FONT face=serif size=2>Net Sales</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Net sales decreased $490,000 to $320.1
million during the six months ended August 1, 2009, from net sales of $320.6
million in the comparable prior year period. The decrease in net sales was due
to a comparable store sales decline of 3.3% in addition to the loss of sales
from the 13 stores closed since the beginning of fiscal 2008. Approximately 1%
of the comparable store sales decline was attributable to the sales-tax-free
holiday shift that occurred in nine of our states. These sales-tax-free holidays
shifted from the second quarter, where they were reported in fiscal 2008, into
the third quarter this year. This decrease was offset by a $17.3 million
increase in sales generated by the new stores opened since the beginning of
fiscal 2008. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Gross Profit</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Gross profit decreased $1.6 million to
$87.6 million in the first six months of fiscal 2009 from gross profit of $89.2
million in the comparable prior year period. The gross margin in the first half
of fiscal 2009 decreased 0.4% from the same period last year to 27.4%. The
merchandise margin decreased 0.4%, largely as a result of aggressive liquidation
of non-athletic footwear in the first quarter of fiscal 2009. Both as a
percentage of sales and in dollars, buying, distribution and occupancy costs
remained flat with prior year. While occupancy costs increased on a
year-over-year basis as a result of operating additional stores, we were able to
offset this increase through cost savings initiatives within our buying and
distribution functions. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Selling, General and Administrative
Expenses</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Selling, general and administrative
expenses decreased $908,000 to $79.1 million, or 24.7% of sales, in the first
half of fiscal 2009 from $80.0 million, or 24.9% of sales, in the comparable
prior year period. Even though we operated additional stores during the first
half of fiscal 2009 compared to the prior year period, we were able to achieve
expense savings in a number of store-level categories, including depreciation
and advertising. These savings were partially offset by an increase of $583,000
in employee health care, incentives and benefits.</FONT></P>
<P align=justify><FONT face=serif size=2>Pre-opening costs included in selling,
general and administrative expenses were $634,000, or 0.2% of sales, for the
first half of fiscal 2009 as compared to $440,000, or 0.1% of sales, for the
first half of fiscal 2008. We opened 12 stores in the first six months of fiscal
2009 as compared to 14 stores in the first six months of fiscal 2008.
Pre-opening costs, such as advertising, payroll and supplies, incurred prior to
the opening of a new store are charged to expense in the period they are
incurred. The total amount of pre-opening expense incurred will vary by store
depending on the specific market and the promotional activities involved.
</FONT></P>
<P align=center><FONT face=serif size=2>19</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><I><FONT face=serif size=2>Interest (Income) Expense, Net
</FONT></I></P>
<P align=justify><FONT face=serif size=2>We recorded net interest expense of
$80,000 in the first half of fiscal 2009 as compared to net interest income of
$7,000 in the first half of the prior year. As returns available on short-term
investments fell to record lows, we held our excess funds for the majority of
the first half of fiscal 2009 in non-interest bearing deposit accounts to offset
bank service fees. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Income Taxes</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>The effective income tax rate for the
first six months of fiscal 2009 increased to 39.2% from 37.7% compared to the
same time period in 2008. The annual effective income tax rate is expected to be
approximately 39.0%. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Liquidity and Capital
Resources</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Our primary sources of funds are cash
flows from operations and borrowings under our revolving credit facility. Our
net cash used in operations was $2.0 million in the first six months of fiscal
2009 as compared to net cash provided by operations of $13.8 million in the
first six months of 2008. The change in operating cash flow, when comparing the
two periods of each year, was primarily due to an increase in merchandise
inventories, partially offset by related accounts payable. During the second
quarter of fiscal 2008, given the adverse economic conditions, we lessened our
historical back-to-school build up of inventory levels and as a result reduced
our per-store inventories compared to the prior year period thus generating cash
flow. We continued to reduce our per-store inventories in the second half
of fiscal 2008. For the fiscal 2009 back-to-school season, we followed a more
normalized inventory build cycle and did not reduce per-store inventories
further on a year-over-year basis. Together with operating an additional 11
stores as compared to the second quarter of fiscal 2008, this increase in
per-store inventories resulted in a use of cash in fiscal 2009. </FONT></P>
<P align=justify><FONT face=serif size=2>Working capital increased to $159.1
million at August 1, 2009 from $147.9 million at August 2, 2008. Approximately
$7.6 million of this increase was attributable to the merchandise inventories
required to operate the additional 11 stores open on August 1, 2009 as compared
to August 2, 2008. The current ratio at August 1, 2009 was 2.8 as compared to
2.7 at August 2, 2008. We had no interest bearing long-term debt as of the end
of either period.</FONT></P>
<P align=justify><FONT face=serif size=2>During the first half of fiscal 2009,
we expended $5.5 million in cash for the purchase of property and equipment. Of
this expenditure, $4.3 million was used for new stores, store remodeling and
store relocation projects. An additional $685,000 was used to begin the
remediation of our distribution center's material handling system. The remaining
capital expenditures were used primarily for information technology and
miscellaneous equipment purchases. </FONT></P>
<P align=justify><FONT face=serif size=2>We opened 12 new stores during the
first half of fiscal 2009 and we anticipate opening an additional four stores
during the second half of the year. Capital expenditures of approximately $4.4
million to $6.2 million will be made during the second half of fiscal 2009. Our
projected capital expenditures include a range of $300,000 to $2.3 million for
further remediation of our distribution center's material handling system. The
actual amount expended at the distribution center will be dictated by the level
of remediation effort that can reasonably be undertaken during the second half
of fiscal 2009. The remaining capital expenditures will be incurred for the
opening of new stores, store remodels and various other store improvements,
along with continued investments in technology and normal asset replacement
activities. We currently anticipate receiving an additional $1.1 million in
landlord incentives through the end of fiscal 2009. The actual amount of cash
required for capital expenditures for store operations depends in part on the
number of new stores opened, the amount of lease incentives, if any, received
from landlords and the number of stores remodeled. The opening of new stores
will be dependent upon, among other things, the availability of desirable
locations, the negotiation of acceptable lease terms and general economic and
business conditions affecting consumer spending in areas we target for
expansion. </FONT></P>
<P align=justify><FONT face=serif size=2>Our current store prototype uses
between 8,000 and 12,000 square feet depending upon, among other factors, the
location of the store and the population base the store is expected to service.
For fiscal 2009, our new stores will average proximately 9,700 square feet.
Capital expenditures for a new store in fiscal 2009 are expected to average
approximately $341,000 and tenant improvement allowances are expected to average
$94,000. The average inventory investment in a new store is expected to range
from $350,000 to $500,000 depending on the size and sales expectation of the
store and the timing of the new store opening. Pre-opening expenses, such as
advertising, salaries and supplies, are expected to average approximately
$68,000 per store in fiscal 2009.</FONT></P>
<P align=center><FONT face=serif size=2>20</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>We closed two stores during the first
half of both fiscal years. We expect to close six stores during the second half
of fiscal 2009 as compared to closing nine stores in the second half of fiscal
2008. We will continue to evaluate underperforming stores for possible closing
on a routine basis, which may result in the identification of additional store
closings for the current or future fiscal years. The timing and actual amount of
expense recorded in closing a store can vary significantly depending, in part,
on the period in which management commits to a closing plan, the remaining basis
in the fixed assets to be disposed of at closing and the amount of any lease
buyout. </FONT></P>
<P align=justify><FONT face=serif size=2>As of August 1, 2009, our unsecured
credit agreement provided for up to $95.0 million in cash advances and
commercial and standby letters of credit. Borrowings under the revolving credit
line are based on eligible inventory. The credit agreement contains the
following covenants: (1) Total Shareholders' Equity, adjusted for the effect of
any share repurchases, will not fall below that of the prior fiscal year-end;
(2) the ratio of funded debt plus rent to EBITDA plus rent will not exceed 2.5
to 1.0; (3) total distributions for stock repurchases will not exceed $50.0
million; and (4) cash dividends will not reduce our Total Shareholders' Equity,
adjusted for the effect of any share repurchases, below that of the prior fiscal
year-end. We were in compliance with these covenants as of August 1, 2009.
Should a default condition be reported, the lenders may preclude additional
borrowings and call all loans and accrued interest at their discretion. As of
August 1, 2009, there were no cash advances outstanding and letters of credit
outstanding were $12.0 million. The amount available to us for additional
borrowings was $83.0 million as of August 1, 2009. </FONT></P>
<P align=justify><FONT face=serif size=2>Our $50.0 million share repurchase
program will terminate on December 31, 2009, unless extended by our Board of
Directors. Share repurchases under this authorization may be made in the open
market or in privately negotiated transactions. The timing and actual number of
shares repurchased will depend on a variety of factors including price,
corporate and regulatory requirements and other market conditions. As of August
1, 2009, approximately 1.2 million shares had been repurchased at an aggregate
cost of $28.1 million. The amount that remained available under the existing
repurchase authorization at August 1, 2009 was $21.9 million. No shares have
been repurchased since the fourth quarter of fiscal 2007. </FONT></P>
<P align=justify><FONT face=serif size=2>On or about April 22, 2008, an
arbitration claim was filed by SDI Industries, Inc. ("SDI") against us with the
American Arbitration Association Western Case Management Center in Los Angeles,
California, captioned </FONT><I><FONT face=serif size=2>SDI Industries, Inc.
(Claimant and Counter-Respondent) v. Shoe Carnival, Inc. (Respondent and
Counterclaimant),</FONT></I><FONT face=serif size=2> in which SDI sought payment
of $1.2 million of unpaid retainage, $700,000 for services not yet billed, plus
additional interest and legal fees. The retainage was withheld from progress
billings for work performed on our distribution center and was recorded in
accrued and other liabilities and fixed assets in our consolidated financial
statements. We filed a Counterclaim and Response in this matter, denying SDI's
claim, and seeking monetary damages of more than $3.0 million. We asserted that
SDI breached our contract with SDI ("Contract") due to its failure to deliver
our distribution center's material handling system pursuant to the
specifications of the Contract.</FONT></P>
<P align=justify><FONT face=serif size=2>On May 30, 2009, the parties entered
into a settlement of the above matter. Under the terms of the settlement, SDI
agreed to forego collection of the $1.2 million in unpaid retainage and to pay
us $1.2 million towards the remediation of the distribution center's material
handling system. The $1.2 million will be paid in installments over seven years
and is evidenced by a promissory note secured by a standby letter of credit,
renewable annually, in an amount not less than $200,000 and by a security
interest in SDI's accounts receivable. In addition, both parties agreed to the
dismissal of all pending claims currently under arbitration. The installment due
on the promissory note within the next 12 months has been recorded in Accounts
receivable in our consolidated financial statements. The remaining balance of
the promissory note is recorded in Other as a non-current asset. SDI remitted
the first scheduled payment prior to the due date of July 1, 2009.</FONT></P>
<P align=center><FONT face=serif size=2>21</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>Although the investment we made in the
distribution center will satisfy our distribution needs throughout fiscal 2009,
we have not achieved the productivity that we expect will be required based on
our plan for long-term store growth. We have contracted with another
distribution logistics company to provide recommendations as to system upgrades
to improve throughput and will implement certain of these recommendations in the
second half of fiscal 2009 and also possibly in fiscal 2010.</FONT></P>
<P align=justify><FONT face=serif size=2>We anticipate that our existing cash
and cash flow from operations, supplemented by borrowings under our revolving
credit line, will be sufficient to fund our planned store expansion along with
other capital expenditures, any future repurchase of our common stock under our
current repurchase plan and working capital requirements for at least the next
12 months. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Seasonality</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Our quarterly results of operations
have fluctuated and are expected to continue to fluctuate in the future
primarily as a result of seasonal variances and the timing of sales and costs
associated with opening new stores. Non-capital expenditures, such as
advertising and payroll, incurred prior to opening a new store are charged to
expense as incurred. Therefore, our results of operations may be adversely
affected in any quarter in which we incur pre-opening expenses related to the
opening of new stores.</FONT></P>
<P align=justify><FONT face=serif size=2>We have three distinct peak selling
periods: Easter, back-to-school and Christmas. </FONT></P>
<P align=justify><B><FONT face=serif size=2>New Accounting Pronouncements
</FONT></B></P>
<P align=justify><FONT face=serif size=2>Recent accounting pronouncements
applicable to our operations are contained in Note 3 &#150; "Recently Issued
Accounting Pronouncements" contained in the Notes to Condensed Consolidated
Financial Statements included in PART I, ITEM 1. FINANCIAL STATEMENTS of this
Quarterly Report on Form 10-Q. </FONT></P>
<P align=justify><B><FONT face=serif size=2>ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK </FONT></B></P>
<P align=justify><FONT face=serif size=2>We are exposed to market risk in that
the interest payable under our credit facility is based on variable interest
rates and therefore is affected by changes in market rates. We do not use
interest rate derivative instruments to manage exposure to changes in market
interest rates. We had no borrowings during the first half of fiscal
2009.</FONT></P>
<P align=justify><B><FONT face=serif size=2>ITEM 4. CONTROLS AND PROCEDURES
</FONT></B></P>
<P align=justify><FONT face=serif size=2>Our Chief Executive Officer and Chief
Financial Officer have concluded, based on their evaluation as of August 1,
2009, that our disclosure controls and procedures are effective to ensure that
information required to be disclosed by us in the reports filed or submitted by
us under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms, and include controls and
procedures designed to ensure that information required to be disclosed by us in
such reports is accumulated and communicated to our management, including the
Chief Executive Officer and Chief Financial Officer, as appropriate to allow
timely decisions regarding required disclosure. </FONT></P>
<P align=justify><FONT face=serif size=2>Management is continuously seeking to
improve the efficiency and effectiveness of our operations and internal
controls. This results in refinements to processes throughout the company. As
part of our continued strategy to grow our store base and increase capacity, we
are in the process of redesigning certain elements of the material handling
system in our distribution center. The internal controls impacted by this
project are mainly automated and operational in nature. See our Notes to
Condensed Consolidated Financial Statements, Note 5 &#150; "Litigation Matters"
included in PART I, ITEM 1. FINANCIAL STATEMENTS of this Quarterly Report on
Form 10-Q for further details on this matter. There have been no other changes
in our internal control over financial reporting that occurred during the
quarter ended August 1, 2009 that have materially affected, or are reasonably
likely to materially affect, our internal control over financial reporting.
</FONT></P>
<P align=center><FONT face=serif size=2>22</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC. <BR>PART II -
OTHER INFORMATION</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><B><FONT face=serif size=2>ITEM 1. LEGAL PROCEEDINGS
</FONT></B></P>
<P align=justify><FONT face=serif size=2>The information set forth in Note 5 &#150;
"Litigation Matters" contained in the Notes to Condensed Consolidated Financial
Statement included in PART I, ITEM 1. FINANCIAL STATEMENTS of this Quarterly
Report on Form 10-Q is incorporated herein by reference. </FONT></P>
<P align=justify><B><FONT face=serif size=2>ITEM 1A. RISK FACTORS
</FONT></B></P>
<P align=justify><FONT face=serif size=2>You should carefully consider the risks
and uncertainties we describe both in this Quarterly Report on Form 10-Q and in
the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year
ended January 31, 2009 before deciding to invest in, or retain, shares of our
common stock. These are not the only risks and uncertainties that we face.
Additional risks and uncertainties that we do not currently know about, we
currently believe are immaterial or we have not predicted may also harm our
business operations or adversely affect us. If any of these risks or
uncertainties actually occur, our business, financial condition, results of
operations or cash flows could be materially adversely affected. There have been
no material changes to the risk factors set forth in our Annual Report on Form
10-K for the fiscal year ended January 31, 2009. </FONT></P>
<P align=justify><B><FONT face=serif size=2>ITEM 4. SUBMISSION OF MATTERS TO A
VOTE OF SECURITY HOLDERS </FONT></B></P>
<P align=justify><FONT face=serif size=2>The annual meeting of our common
shareholders was held June 9, 2009. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Election of Directors
</FONT></B></P>
<P align=justify><FONT face=serif size=2>William E. Bindley and Kent A.
Kleeberger were elected at the annual meeting to serve as our Directors for
three-year terms. Mr. Bindley received 10,164,556 votes in favor of his election
and 2,226,489 votes were withheld. Mr. Kleeberger received 10,174,047 votes in
favor of his election and 2,216,998 votes were withheld. </FONT></P>
<P align=justify><FONT face=serif size=2>In addition, the following Directors
continue in office until the annual meeting of shareholders in the year
indicated: </FONT></P>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="25%" border=0>

  <TR bgColor=#c0c0c0>
    <TD align=left width="97%"><FONT size=2>Mark L. Lemond </FONT></TD>
    <TD align=center width="3%"><FONT size=2>2010</FONT><FONT size=3>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="97%"><FONT size=2>J. Wayne Weaver&nbsp; </FONT></TD>
    <TD align=center width="3%"><FONT size=2>2011</FONT><FONT size=3>&nbsp;</FONT></TD></TR>
  <TR bgColor=#c0c0c0>
    <TD align=center width="97%">
      <P align=justify><FONT face=serif size=2>Gerald W. Schoor&nbsp;
    </FONT></P></TD>
    <TD align=center width="3%"><FONT size=2>2011</FONT><FONT size=3>&nbsp;</FONT></TD></TR></TABLE>

<P align=justify><B><FONT face=serif size=2>Other Matters Voted Upon at the
Meeting </FONT></B></P>
<P align=justify><FONT face=serif size=2>The appointment of Deloitte &amp;
Touche LLP as our independent registered public accounting firm for 2009 was
ratified. Votes of 12,371,091 were cast in favor, 18,919 votes were cast
against, 1,035 abstentions were recorded, and no broker non-votes were recorded
with respect to such ratification. </FONT></P>
<P align=center><FONT face=serif size=2>23</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>ITEM 6. EXHIBITS</FONT></B><FONT face=serif size=2> </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center width="1%" ></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD align=center width="1%" ></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="73%">&nbsp; </TD>
    <TD align=center width="2%"></TD>
    <TD noWrap align=left width="15%" colSpan=5><FONT face=serif size=2>Incorporated by Reference To</FONT>&nbsp; </TD>
    <TD align=center width="2%"></TD>
    <TD align=center width="4%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="3%"  colSpan=3><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>Exhibit</FONT>&nbsp; </TD>
    <TD align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD align=center width="73%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD align=center width="5%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD align=center width="5%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>Filing</FONT> </TD>
    <TD align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD align=center width="4%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>Filed</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="3%"  colSpan=3><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>No.</FONT>&nbsp; </TD>
    <TD align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="73%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>Description</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="1%"><FONT size=2><FONT size=3>&nbsp;</FONT>Form<FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="5%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>Exhibit</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="5%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>Date</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="4%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>Herewith</FONT> </TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>3-A</FONT></TD>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="73%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>Restated Articles of
      Incorporation of Registrant</FONT><FONT face=serif>&nbsp;</FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0>
      <P align=center><FONT face=serif size=2>10-K&nbsp;</FONT><FONT face=serif size=2> </FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0>
      <P align=center><FONT face=serif size=2>3-A</FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0>
      <P align=center><FONT face=serif size=2>4/25/2002&nbsp;</FONT><FONT face=serif size=2> </FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="4%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=left width="73%">&nbsp;</TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="4%"></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>3-B</FONT></TD>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="73%" bgColor=#c0c0c0><FONT size=2>By-laws
      of Registrant, as amended to date</FONT><FONT size=3>&nbsp;</FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0><FONT size=2>8-K
      </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>3-B
      </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>6/12/2009 </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="4%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=left width="73%">&nbsp;</TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="4%"></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0>
      <P align=left><FONT face=serif size=2>4</FONT></P></TD>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="73%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(i) Amended and Restated Credit
      Agreement and Promissory Notes dated April 16, 1999, between Registrant
      and Mercantile Bank National Association, First Union National Bank and
      Old National Bank<FONT size=3>&nbsp;</FONT></FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0><FONT size=2>10-K<FONT face=serif> </FONT></FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>4(I)
      </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>4/29/1999</FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="4%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=left width="73%">&nbsp;</TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="4%"></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0>
      <P align=center><FONT face=serif size=2></FONT>&nbsp;</P></TD>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="73%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(ii) Amendment to Amended and
      Restated Credit Agreement and Promissory Notes dated March 24, 2000,
      between Registrant and Mercantile Bank National Association, First Union
      National Bank and Old National Bank<FONT size=3>&nbsp;</FONT></FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0>
      <P align=center><FONT face=serif size=2>10-K</FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0>
      <P align=center><FONT face=serif size=2>4(II) </FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0>
      <P align=center><FONT face=serif size=2>4/28/2000 </FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="4%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=left width="73%">&nbsp;</TD>
    <TD vAlign=top align=center width="2%">&nbsp;</TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="4%"></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="73%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(iii) Second Amendment to Amended
      and Restated Credit Agreement and Promissory Notes dated November 8, 2000,
      between Registrant and Firstar Bank N.A., First Union National Bank, Old
      National Bank and LaSalle Bank National Association<FONT size=3>&nbsp;</FONT></FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0>
      <P align=center><FONT face=serif size=2>10-Q</FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>4(III)
      </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>12/12/2000 </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="4%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=left width="73%">&nbsp;</TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="4%"></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="73%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(iv) Third Amendment to Amended
      and Restated Credit Agreement and Promissory Notes dated March 18, 2002,
      between Registrant and U.S. Bank National Association, First Union
      National Bank, Old National Bank and LaSalle Bank National
      Association<FONT size=3>&nbsp;</FONT></FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0><FONT size=2>10-K&nbsp;</FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>4(IV)
      </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>4/25/2002 </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="4%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=left width="73%">&nbsp;</TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="4%"></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="73%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(v) Fourth Amendment to Amended
      and Restated Credit Agreement and Promissory Notes dated March 12, 2003,
      between Registrant and U.S. Bank National Association, Wachovia Bank
      National Association, Old National Bank and LaSalle Bank National
      Association<FONT size=3>&nbsp;</FONT></FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0><FONT size=2>10-K&nbsp;</FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>&nbsp;4(V) </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>5/1/2003 </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="4%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=left width="73%">&nbsp;</TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="4%"></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="73%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(vi) Fifth Amendment to Amended
      and Restated Credit Agreement and Promissory Notes dated April 5, 2004,
      between Registrant and U.S. Bank National Association, Wachovia Bank
      National Association, Old National Bank and LaSalle Bank National
      Association<FONT size=3>&nbsp;</FONT></FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0><FONT size=2>10-K&nbsp;</FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>4(VI)</FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>4/14/2004 </FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="4%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=center width="1%" ></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=left width="73%">&nbsp;</TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="1%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="5%"></TD>
    <TD vAlign=top align=center width="2%"></TD>
    <TD vAlign=top align=center width="4%"></TD></TR>
  <TR>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="73%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(vii) Assignment Agreement dated
      June 1, 2004 among LaSalle Bank National Association as Assignor, Fifth
      Third Bank (Southern Indiana) as Assignee, Registrant as Borrower and U.S.
      Bank National Association as Agent relating to the Amended and Restated
      Credit Agreement as further amended<FONT size=3>&nbsp;</FONT></FONT></P></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;10-Q</FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>4(VII)</FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="5%" bgColor=#c0c0c0><FONT size=2>6/8/2004</FONT></TD>
    <TD vAlign=top align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="4%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>24</FONT></P>
<HR align=center width="100%" noShade SIZE=2>




<PAGE>
<P align=center><B><FONT face=serif size=2>EXHIBITS - Continued</FONT></B><FONT face=serif size=2> </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="69%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=left width="23%" colSpan=7><FONT face=serif size=2>Incorporated by Reference To</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="2%"><FONT face=serif size=2>Exhibit</FONT>
    </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="69%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="4%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>Filing</FONT>
    </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>Filed</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%"><FONT face=serif size=2>No.</FONT> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="69%"><FONT face=serif size=2>Description</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%"><FONT face=serif size=2>Form</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif size=2>Exhibit</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif size=2>Date</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>Herewith</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD vAlign=top align=left width="69%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(viii) Sixth Amendment to Amended
      and Restated Credit Agreement and Notes dated April 5, 2005, between
      Registrant and U.S. Bank National Association, Wachovia Bank National
      Association, Fifth Third Bank (Southern Indiana) and Old National
      Bank</FONT></P></TD>
    <TD vAlign=top noWrap align=center width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=serif size=2>8-K</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD vAlign=top noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4(VIII)</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD vAlign=top noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4/11/2005</FONT></TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="69%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(ix) Seventh Amendment to Amended
      and Restated Credit Agreement and Notes dated March 31, 2006, between
      Registrant and U.S. Bank National Association, Wachovia Bank, National
      Association and Fifth Third Bank</FONT></P></TD>
    <TD vAlign=top noWrap align=center width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=serif size=2>8-K</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4(IX)</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4/4/2006</FONT></TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="69%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(x) Eighth Amendment to Amended
      and Restated Credit Agreement and Notes dated December 15, 2006, between
      Registrant and U.S. Bank National Association, Wachovia Bank, National
      Association and Fifth Third Bank</FONT></P></TD>
    <TD vAlign=top noWrap align=center width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=serif size=2>8-K</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4(X)</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>12/15/2006</FONT></TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="69%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>(xi) Ninth Amendment to Amended
      and Restated Credit Agreement and Notes dated June 10, 2008, between
      Registrant and U.S. Bank National Association, Wachovia Bank, National
      Association and Fifth Third Bank</FONT></P></TD>
    <TD vAlign=top noWrap align=center width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=serif size=2>10-Q</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4(XI)</FONT></TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>6/11/2008</FONT></TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face=serif size=2>31.1</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="69%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>Certification of Chief Executive
      Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange
      Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act
      of 2002</FONT></P></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>X</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=center width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face=serif size=2>31.2</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="69%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>Certification of Chief Financial
      Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange
      Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act
      of 2002</FONT></P></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>X</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=center width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face=serif size=2>32.1</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="69%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>Certification of Chief Executive
      Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
      906 of the Sarbanes-Oxley Act of 2002</FONT></P></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>X</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=center width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face=serif size=2>32.2</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="69%" bgColor=#c0c0c0>
      <P align=justify><FONT face=serif size=2>Certification of Chief Financial
      Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
      906 of the Sarbanes-Oxley Act of 2002</FONT></P></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>X</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>25</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL,
INC.<BR></FONT></B><B><FONT face=serif size=2>SIGNATURE</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed, on its behalf by the undersigned thereunto duly authorized.
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>Date: September
      10, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" >&nbsp;</TD>
    <TD noWrap align=center width="11%"><FONT face=serif size=2>SHOE CARNIVAL,
      INC.</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%">&nbsp; </TD>
    <TD noWrap align=center width="2%" >&nbsp;</TD>
    <TD noWrap align=center width="11%"><FONT face=serif size=2>(Registrant)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%">&nbsp; </TD>
    <TD noWrap align=right width="13%"  colSpan=2><FONT face=serif size=2>By: </FONT><U><FONT face=serif size=2>/s/ W. Kerry
      Jackson</FONT></U> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%">&nbsp; </TD>
    <TD noWrap align=right width="13%"  colSpan=2><FONT face=serif size=2>W. Kerry Jackson</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%">&nbsp; </TD>
    <TD noWrap align=right width="13%"  colSpan=2><FONT face=serif size=2>Executive Vice President and</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%">&nbsp; </TD>
    <TD noWrap align=right width="13%"  colSpan=2><FONT face=serif size=2>Chief Financial Officer</FONT>
</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>26</FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>exhibit31-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>
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<BODY bgcolor="#ffffff">
<P align=right><B><FONT face=serif size=2>Exhibit 31.1 </FONT></B></P>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL,
INC.<BR></FONT></B><B><FONT face=serif size=2>CERTIFICATION PURSUANT TO RULE
13a-14(a)/15d-14(a) OF THE SECURITIES<BR>EXCHANGE ACT OF 1934, AS ADOPTED
PURSUANT TO SECTION 302 OF THE<BR></FONT></B><B><FONT face=serif size=2>SARBANES-OXLEY ACT OF 2002</FONT></B></P>
<P align=justify><FONT face=serif size=2>I, Mark L. Lemond, certify that:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD style="PADDING-TOP: 1.5pt" vAlign=top noWrap><FONT face=serif size=2>1.</FONT></TD>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>I have reviewed this quarterly
      report on Form 10-Q of Shoe Carnival, Inc.;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>2.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Based on my knowledge, this
      report does not contain any untrue statement of a material fact or omit to
      state a material fact necessary to make the statements made, in light of
      the circumstances under which such statements were made, not misleading
      with respect to the period covered by this report;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>3.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Based on my knowledge, the
      financial statements, and other financial information included in this
      report, fairly present in all material respects the financial condition,
      results of operations and cash flows of the registrant as of, and for, the
      periods presented in this report;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>The registrant's other certifying
      officer and I are responsible for establishing and maintaining disclosure
      controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
      15d-15(e)) and internal control over financial reporting (as defined in
      Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and
      have:</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Designed such disclosure controls
      and procedures, or caused such disclosure controls and procedures to be
      designed under our supervision, to ensure that material information
      relating to the registrant, including its consolidated subsidiaries, is
      made known to us by others within those entities, particularly during the
      period in which this report is being prepared;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Designed such internal control
      over financial reporting, or caused such internal control over financial
      reporting to be designed under our supervision, to provide reasonable
      assurance regarding the reliability of financial reporting and the
      preparation of financial statements for external purposes in accordance
      with generally accepted accounting principles;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Evaluated the effectiveness of
      the registrant's disclosure controls and procedures and presented in this
      report our conclusions about the effectiveness of the disclosure controls
      and procedures, as of the end of the period covered by this report based
      on such evaluation; and</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(d)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Disclosed in this report any
      change in the registrant's internal control over financial reporting that
      occurred during the registrant's most recent fiscal quarter (the
      registrant's fourth fiscal quarter in the case of an annual report) that
      has materially affected, or is reasonably likely to materially affect, the
      registrant's internal control over financial reporting;
  and</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>The registrant's other certifying
      officer and I have disclosed, based on our most recent evaluation of
      internal control over financial reporting, to the registrant's auditors
      and the audit committee of registrant's board of directors (or persons
      performing the equivalent functions):</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>All significant deficiencies and
      material weaknesses in the design or operation of internal control over
      financial reporting which are reasonably likely to adversely affect the
      registrant's ability to record, process, summarize and report financial
      information; and</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Any fraud, whether or not
      material, that involves management or other employees who have a
      significant role in the registrant's internal control over financial
      reporting.</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face=serif size=2>Date: September 10,
      2009<FONT size=3>&nbsp;</FONT></FONT>&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>By: </FONT><U><FONT face=serif size=2>/s/ Mark L.
      Lemond</FONT></U> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>Mark L. Lemond</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>President and</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>Chief Executive Officer</FONT>
  </TD></TR></TABLE><BR>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>exhibit31-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>
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<BODY bgcolor="#ffffff">
<P align=right><B><FONT face=serif size=2>Exhibit 31.2 </FONT></B></P>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL,
INC.<BR></FONT></B><B><FONT face=serif size=2>CERTIFICATION PURSUANT TO RULE
13a-14(a)/15d-14(a) OF THE SECURITIES<BR>EXCHANGE ACT OF 1934, AS ADOPTED
PURSUANT TO SECTION 302 OF THE<BR></FONT></B><B><FONT face=serif size=2>SARBANES-OXLEY ACT OF 2002</FONT></B></P>
<P align=justify><FONT face=serif size=2>I, W. Kerry Jackson, certify that:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD style="PADDING-TOP: 1.5pt" vAlign=top noWrap><FONT face=serif size=2>1.</FONT></TD>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>I have reviewed this quarterly
      report on Form 10-Q of Shoe Carnival, Inc.;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>2.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Based on my knowledge, this
      report does not contain any untrue statement of a material fact or omit to
      state a material fact necessary to make the statements made, in light of
      the circumstances under which such statements were made, not misleading
      with respect to the period covered by this report;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>3.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Based on my knowledge, the
      financial statements, and other financial information included in this
      report, fairly present in all material respects the financial condition,
      results of operations and cash flows of the registrant as of, and for, the
      periods presented in this report;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>The registrant's other certifying
      officer and I are responsible for establishing and maintaining disclosure
      controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
      15d-15(e)) and internal control over financial reporting (as defined in
      Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and
      have:</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Designed such disclosure controls
      and procedures, or caused such disclosure controls and procedures to be
      designed under our supervision, to ensure that material information
      relating to the registrant, including its consolidated subsidiaries, is
      made known to us by others within those entities, particularly during the
      period in which this report is being prepared;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Designed such internal control
      over financial reporting, or caused such internal control over financial
      reporting to be designed under our supervision, to provide reasonable
      assurance regarding the reliability of financial reporting and the
      preparation of financial statements for external purposes in accordance
      with generally accepted accounting principles;</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Evaluated the effectiveness of
      the registrant's disclosure controls and procedures and presented in this
      report our conclusions about the effectiveness of the disclosure controls
      and procedures, as of the end of the period covered by this report based
      on such evaluation; and</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(d)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Disclosed in this report any
      change in the registrant's internal control over financial reporting that
      occurred during the registrant's most recent fiscal quarter (the
      registrant's fourth fiscal quarter in the case of an annual report) that
      has materially affected, or is reasonably likely to materially affect, the
      registrant's internal control over financial reporting;
  and</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>The registrant's other certifying
      officer and I have disclosed, based on our most recent evaluation of
      internal control over financial reporting, to the registrant's auditors
      and the audit committee of registrant's board of directors (or persons
      performing the equivalent functions):</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>All significant deficiencies and
      material weaknesses in the design or operation of internal control over
      financial reporting which are reasonably likely to adversely affect the
      registrant's ability to record, process, summarize and report financial
      information; and</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Any fraud, whether or not
      material, that involves management or other employees who have a
      significant role in the registrant's internal control over financial
      reporting.</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=serif size=2>Date: September
      10, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=right width="53%"><FONT face=serif size=2>By: <U>/s/ W.
      Kerry Jackson</U></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD noWrap align=right width="53%"><FONT face=serif size=2>W. Kerry
      Jackson</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD noWrap align=right width="53%"><FONT face=serif size=2>Executive Vice
      President and</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD noWrap align=right width="53%"><FONT face=serif size=2>Chief Financial
      Officer</FONT> </TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>exhibit32-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350
<TEXT>
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<P align=right><B><FONT face=serif size=2>Exhibit 32.1 </FONT></B></P>
<P align=center><B><FONT face=serif size=2>CERTIFICATION PURSUANT TO 18
U.S.C.<BR>SECTION 1350,<BR>AS ADOPTED PURSUANT TO SECTION<BR></FONT></B><B><FONT face=serif size=2>906 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></B></P>
<P align=justify><FONT face=serif size=2>In connection with the Quarterly Report
of Shoe Carnival, Inc. (the "Company") on Form 10-Q for the period ending August
1, 2009 as filed with the Securities and Exchange Commission on the date hereof
(the "Report"), I, Mark L. Lemond, President and Chief Executive Officer of the
Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.</FONT></TD>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The Report fully complies with
      the requirements of section 13(a) or 15(d) of the Securities Exchange Act
      of 1934; and</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>2.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The information contained in the
      Report fairly presents, in all material respects, the financial condition
      and results of operations of the Company.</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face=serif size=2>Date: September 10,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>By: </FONT><U><FONT face=serif size=2>/s/ Mark L.
      Lemond</FONT></U> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>Mark L. Lemond</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>President and</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>Chief Executive Officer</FONT>
  </TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>exhibit32-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350
<TEXT>
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<P align=right><B><FONT face=serif size=2>Exhibit 32.2 </FONT></B></P>
<P align=center><B><FONT face=serif size=2>CERTIFICATION PURSUANT TO 18
U.S.C.<BR>SECTION 1350,<BR>AS ADOPTED PURSUANT TO SECTION<BR></FONT></B><B><FONT face=serif size=2>906 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></B></P>
<P align=justify><FONT face=serif size=2>In connection with the Quarterly Report
of Shoe Carnival, Inc. (the "Company") on Form 10-Q for the period ending August
1, 2009 as filed with the Securities and Exchange Commission on the date hereof
(the "Report"), I W. Kerry Jackson, Executive Vice President and Chief Financial
Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.</FONT></TD>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The Report fully complies with
      the requirements of section 13(a) or 15(d) of the Securities Exchange Act
      of 1934; and</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>2.</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The information contained in the
      Report fairly presents, in all material respects, the financial condition
      and results of operations of the Company.</FONT></P></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="45%"><FONT face=serif size=2>Date: September 10,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>By: <U>/s/ W. Kerry
      Jackson</U></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="45%">&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>W. Kerry Jackson</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="45%">&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>Executive Vice President and</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="45%">&nbsp; </TD>
    <TD noWrap align=right width="50%"><FONT face=serif size=2>Chief Financial Officer</FONT>
  </TD></TR></TABLE><BR>
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