BIG DOG HOLDINGS, INC

BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

			December 31,
			2004	2003

ASSETS
CURRENT ASSETS:
	Cash and cash equivalents		$ 4,670,000	$ 10,503,000
	Receivables, net		411,000	116,000
	Inventories		39,581,000	24,752,000
	Prepaid expenses and other current assets		928,000	789,000
	Deferred income taxes		1,691,000	875,000
		Total current assets	47,281,000	37,035,000
PROPERTY AND EQUIPMENT, Net			9,956,000	4,144,000
INTANGIBLE ASSETS, Net DEFERRED INCOME TAXES			172,000 1,042,000	211,000 946,000
OTHER ASSETS			380,000	246,000
TOTAL			$ 58,831,000	$ 42,582,000

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Short-term borrowings Current portion of long-term debt Accounts payable		$ 304,000 243,000 5,033,000	$ --------- --------- 1,932,000
	Income taxes payable		2,643,000	1,513,000
	Accrued expenses and other current liabilities		6,331,000	4,016,000
		Total current liabilities	14,554,000	7,461,000
NOTE PAYABLE CAPITAL LEASE OBLIGATIONS DEFERRED RENT AND LEASE INCENTIVES			289,000 256,000 943,000	--------- --------- 606,000
DEFERRED GAIN ON SALE-LEASEBACK			248,000	301,000
	Total liabilities		16,290,000	8,368,000
STOCKHOLDERS' EQUITY			42,541,000	34,214,000
	TOTAL		$ 58,831,000	$ 42,582,000

BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS


			Three Months Ended		Years Ended
			December 31,		December 31,
			2004	2003	2004	2003
			(Unaudited)	(Unaudited)
NET SALES			$ 55,739,000	$ 34,708,000	$ 161,358,000	$ 103,757,000
COST OF GOODS SOLD			24,799,000	15,126,000	72,733,000	45,025,000
GROSS PROFIT			30,940,000	19,582,000	88,625,000	58,732,000
OPERATING EXPENSES:
	Selling, marketing and distribution		21,585,000	13,505,000	73,956,000	49,089,000
	General and administrative		2,516,000	1,476,000	8,060,000	5,199,000
		Total operating expenses	24,101,000