Company Profile

Friedman's Inc. is a leading specialty retailer of fine jewelry based in Savannah, Georgia. Friedman's Jewelers is the third largest specialty retailer of jewelry in the United States, and the largest chain within its market of 20 southeastern and mid-western states. It is also the leading operator of fine jewelry stores located in power strip centers. At July 24, 2002, Friedman's Inc. operated a total of 651 stores in 20 states, of which 431 were located in power strip centers and 220 were located in regional malls. Since 1992, Friedman's has grown from just 55 stores by opening an average of 64 new stores per year in both existing and new markets. The Company maintains a strategic relationship with Crescent Jewelers who operates 155 stores in seven western states. It also holds a warrant to purchase 50% of Crescent Jeweler's capital stock for $500,000.

Friedman's has established itself as the "Value Leader" by offering a broad array of quality merchandise at competitive prices. Its convenient, high traffic locations, targeted marketing, exceptional customer service, customized credit plans and well-trained, friendly personnel will continue to be key factors in its growth.

The Company's stores provide a wide variety of affordable jewelry products, including earrings, rings, necklaces, chains, watches and other fine jewelry for men and women. These items are made of yellow and white gold, platinum and silver, and are set with diamonds and other fine gemstones. Diamonds and gemstone jewelry account for the majority of the Company's sales. The Company's stores offer a broad range of diamonds up to one carat and occasionally place special orders for larger diamonds. The gold jewelry Friedman's sells in its stores are primarily 10- and 14-karat.

For the nine months ended 6/29/02, total revenues increased 6% to $366.8 million while net income increased 84% to $23.4 million. Revenues benefited from an increase in comparable store sales. Crescent Jewelers achieved net sales of $137.2 million for fiscal 2001.

Friedman's Class A Common Stock is traded on NasdaqNM.