TCR_Public/950407.MBX BANKRUPTCY CREDITORS' SERVICE, INC.



SPORTSTOWN OBTAINS FINAL COURT APPROVAL OF DIP FINANCING AND REPORTS
RESULTS



  ATLANTA, April 7, 1995 -- SportsTown,
Inc.
(Nasdaq:" target=_new>http://www.secapl.com/cgi-bin/edgarlink?SPTN">(Nasdaq:
SPTN)
today  announced that it had obtained final court approval of its Debtor-
in-Possession (DIP) financing and its Joint Venture Agreement with The
Athlete's Foot.  In addition, the Company reported href="#OPERATING">operating results for the
fiscal year ended January 28, 1995, and for fiscal month ended February 25,
1995.


  The three-year financing agreement with The CIT Group/Business Credit, Inc.
provides a $40 million credit facility that features DIP and exit financing
provisions.  Further, the Bankruptcy Court for the Northern District of
Georgia gave final approval of SportsTown's agreement with The Athlete's Foot
to jointly develop and roll out a new shoe superstore concept within the
Company's megastores.  The first such store is scheduled to be unveiled in
Atlanta in May 1995.


  Preliminary operating results for the fiscal year had previously been
disclosed in connection with the Company's filing for Chapter 11 protection,
which occurred on February 7, 1995.  SportsTown reported sales for the year of
$198.0 million, reflecting an increase of approximately 18.9 percent over
sales of $166.6 million for Fiscal 1994. The sales increase was attributed to
sales from new stores partially offset by a 9.8 percent decrease in comparable
store sales. Net loss for the fiscal year ended January 28, 1995, was $22.9
million or $4.67 per share (based on 4,899,000 weighted average common shares
outstanding) compared with net loss of $5.0 million or $1.02 per share (based
on 4,883,000 weighted average common shares outstanding) a year ago.  The net
loss for Fiscal 1995 reflects repositioning expenses for closing stores and
fixed asset write-offs and other expenses contemplated with The Athlete's Foot
conversions, as well as gross margin reductions associated with inventory
write-downs and negative comparable store sales.


  Additionally, in documents filed with the Bankruptcy Court for the Northern
District of Georgia, the Company reported the results for the period February
8, 1995, to February 25, 1995 (the post-petition portion of fiscal February
1995).  Sales were $6,327,000, gross margin was $850,000, operating expenses
were $1,396,000 and interest expense was $157,000.  The net loss for the
post-petition period was $703,000. The Company's first quarter results, which
should be released in May 1995, will include additional reorganization
expenses and accruals for the first 10 days of fiscal February 1995 preceding
the filing for reorganization under Chapter 11 (pre-petition period).


  "Since seeking Chapter 11 protection two months ago, we have accomplished a
lot towards our goal of restoring financial stability," said Thomas K. Haas,
Chairman and Chief Executive Officer.  "We put together an innovative,
long-term financing agreement, closed six unprofitable stores, downsized our
corporate staff and now will be adding dramatic new shoe superstores within
our existing SportsTown stores.  We believe that we will come out of this
stronger than ever."


  SportsTown, Inc. operates 23 retail sporting goods megastores in Georgia,
the Carolinas, Virginia, Oklahoma and Texas.  The Company's megastores range
in size from 42,000 to 55,000 square feet and offer a wide variety of sports
equipment, athletic footwear and leisure apparel.



                       SPORTSTOWN, INC.
             Condensed Statements of Operations
        (amounts in thousands, except per share amounts)
                        (unaudited)
     Fiscal year ended                  1/28/95    1/29/94
  Sales                                $198,014   $166,556
  Cost of merchandise sold (including
   buying and occupancy costs)          157,494    132,867
  Gross profit                           40,520     33,689
  Operating expenses                     49,196     35,929
  Store pre-opening expenses              1,930      1,851
  Repositioning expenses                  9,233        ---
  Operating loss                        (19,839)    (4,091)
  Interest income                            16         24
  Interest expense                       (3,066)      (925)  
  Loss before income taxes              (22,889)    (4,992)
  Provision for income taxes                ---        ---
  Net loss                             $(22,889)  $ (4,992)
  Comparable store sales decrease          (9.8)%     (2.1)%
  Weighted average common and common
   equivalent shares outstanding          4,899      4,883
  Net loss per share                   $  (4.67)  $  (1.02)

                      Condensed Balance Sheets
                      (amounts in thousands)
                           (unaudited)
     Assets:                               1/28/95     1/29/94
  Cash and cash equivalents                $ 1,079     $ 1,001
  Merchandise inventories                   62,374      62,525
  Vendor receivables, prepaid expenses
   and other assets                          3,194       3,901
  Store construction in progress               ---       2,233
  Total current assets                      66,647      69,660
  Property and equipment-net                20,894      20,394
  Debt issuance costs and other assets       1,547       1,014
  Total assets                             $89,088     $91,068
     Liabilities and stockholders' equity:
  Current liabilities                      $75,757     $30,837
  Deferred rent                              5,397       4,183
  Long-term borrowings under revolving
   credit agreement                            ---      16,272
  Long-term portion of subordinated debt       ---       9,000
  Total liabilities                         81,154      60,292
  Stockholders' equity                       7,934      30,776
  Total liabilities and stockholders'
   equity                                  $89,088     $91,068


  /CONTACT:  Thomas K. Haas, Chairman and CEO, or Gary Stewart,
Senior Vice President, SportsTown, 404-246-5300/