Footstar Declares $2 Per Share Cash Distribution

MAHWAH, N.J.--(Business Wire)--
Footstar, Inc. (OTCBB: FTAR) today announced that its Board of Directors has
declared a $2 per share cash distribution, payment of which is contingent upon
approval, at the special meeting of shareholders to be held on May 5, 2009, of
the plan of complete dissolution and liquidation of the Company outlined in the
Company`s definitive proxy statement, which was filed with the Securities and
Exchange Commission on April 6, 2009. The distribution is scheduled to be paid
on May 6, 2009, assuming shareholder approval is obtained at the May 5th
meeting, to shareholders of record as of the close of business on April 30,
2009.

Including the distribution announced today, since March 27, 2007 the Company has
declared cumulative distributions to shareholders of $9 per share.

The distribution is expected to be treated as a return of capital for tax
reporting purposes, but shareholders will receive further information on Form
1099 after the end of 2009 and are encouraged to consult with their own tax
advisors regarding the tax treatment of the distribution.

The Company anticipates that, assuming shareholder approval is obtained, it will
file a certificate of dissolution with the Delaware Secretary of State following
the special meeting. Following the filing of the certificate of dissolution, the
Company expects it will discontinue recording transfers of shares of its common
stock. Thereafter, certificates representing shares of the Company`s common
stock will not be assignable or transferable on the Company`s books, except by
will, intestate succession or operation of law.

Information regarding the Company`s plan of complete dissolution and liquidation
and the special meeting of the Company`s shareholders to be held on May 5, 2009
is contained in the definitive proxy statement relating to the special meeting
filed by the Company with the Securities and Exchange Commission on April 6,
2009. You should read the Company`s proxy statement because it contains
important information. Subsequent to the date of mailing of the proxy statement,
the Company determined to increase the contingent dividend described in the
proxy statement from $1.90 to $2.00 per share, as described in this press
release. Copies of the Company`s proxy statement are available without charge on
the SEC`s Internet website at www.sec.gov and on the Company`s website at
http://www.footstar.com/financial/proxy. Shareholders may also request a free
copy of the proxy statement by contacting Maureen Richards, Senior VP, General
Counsel & Corporate Secretary of Footstar, at 933 MacArthur Boulevard, Mahwah,
New Jersey 07430 or by telephone at 201-934-2000.

Forward-Looking Statements

This release contains forward-looking statements made in reliance upon the safe
harbor provisions of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These statements
may be identified by the use of words such as "anticipate," "estimates,"
"should," "expect," "guidance," "project," "intend," "plan," "believe" and other
words and terms of similar meaning, in connection with any discussion of our
financial statements, business, results of operations, liquidity, future
operating or financial performance and other future events and circumstances.
Factors that could affect our forward-looking statements include, among other
things, our timely receipt of amounts due from Kmart for the purchase of
inventory, our ability to manage the wind-down of our business, the impact of
the payment of special cash distributions on our future cash requirements and
liquidity needs, for any contingencies and obligations, and the other risks and
uncertainties discussed more fully in our 2008 Annual Report on Form 10-K filed
with the Securities and Exchange Commission on March 9, 2009 and the Definitive
Proxy Statement for the Special Meeting of Shareholders filed with the
Securities and Exchange Commission on April 6, 2009.

Because the information in this release is based solely on data currently
available, it is subject to change and should not be viewed as providing any
assurance regarding our future performance. Actual results, performance, events,
plans and expectations may differ from our current projections, estimates and
expectations and the differences may be material, individually or in the
aggregate, to our business, financial condition, results of operations,
liquidity or prospects. Additionally, we do not plan to update any of our
forward-looking statements based on changes in assumptions, changes in results
or other events subsequent to the date of this release, other than as included
in our future required SEC filings, or as may otherwise be legally required.

Media:
Kekst and Company
Wendi Kopsick, 212-521-4867
or
Investor:
Footstar, Inc.
Jonathan Couchman, 201-934-2713
Chairman and Chief Executive Officer

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