AUSTIN, Texas – Nov. 16, 2004 – Multi-channel retailer Golfsmith International Holdings, Inc., reported results for its third quarter and first nine months of fiscal 2004, which ended October 2, 2004. For the third quarter, Golfsmith increased net revenues 3.9 percent to $73.9 million compared with the same period of the prior fiscal year.

"While the third quarter was slower across the golf industry, we continued to position ourselves for growth by gaining traction in key golf retail markets, adding retail talent to our management team and fine-tuning our national multi-channel retail offering," said Jim Thompson, president and chief executive officer of Golfsmith, a portfolio company of Atlantic Equity Partners III, L.P., a fund operated by First Atlantic Capital, Ltd. "We're pleased with our performance over the first nine months of fiscal 2004."

Financial Highlights

For the third quarter of fiscal 2004, Golfsmith reported:

-- Net revenues of $73.9 million, compared with net revenues of
$71.1 million in the third quarter of fiscal 2003.

-- Operating income of $2.6 million, compared with operating
income of $4.4 million in the third quarter of fiscal 2003.

-- Net income of $0.5 million, compared with net income of $1.0
million in the third quarter of fiscal 2003.

-- A decrease of 7.9 percent in same-store sales -- defined as
sales from stores opened for more than 13 months -- compared
with an increase of 12.6 percent in same store sales in the
third quarter of fiscal 2003.

For the first nine months of fiscal 2004, Golfsmith reported:

-- Net revenues of $236.6 million, compared with net revenues of
$196.2 million for the first nine months of fiscal 2003.

-- Operating income of $11.5 million, compared with operating
income of $11.4 million for the first nine months of fiscal
2003.

-- Net income of $2.6 million, compared with net income of $2.0
million for the first nine months of fiscal 2003.

-- An increase of 2.5 percent in same-store sales, compared with
an increase of 7.2 percent in same store sales for the first
nine months of fiscal 2003.

Golfsmith International Holdings, Inc., is a multi-channel retailer of golf equipment, merchandise and training curriculum for consumers and golf clubmaking businesses. With more than 1,100 employees worldwide, Austin-based Golfsmith today operates 42 retail superstores throughout the United States, distributes the Golfsmith clubmaker and accessories catalogs, and runs an online store at www.golfsmith.com.

Through each channel, the company offers consumers a wide range of pro-line equipment and apparel, as well as Golfsmith's proprietary brands. Since its inception in 1967, Golfsmith has designed and marketed golf clubs, golf club components and accessories, which today are sold under the following proprietary brands: Lynx, Zevo, Snake Eyes, Golfsmith and Killer Bee.

Golfsmith also conducts year-round training programs for clubmakers and hosts the Harvey Penick Golf Academy, which has taught Mr. Penick's renowned golf techniques to more than 17,000 golfers. The company also operates wholly owned distribution centers in the United Kingdom and Canada, and it works with distributors in Italy and Japan. Golfsmith reported fiscal 2003 net revenues of $257.7 million. Atlantic Equity Partners III, L.P, a fund operated by First Atlantic Capital, Ltd., is the majority stockholder of Golfsmith.

Contacts:
Golfsmith International Holdings, Inc., Austin
Andy Craig, 512-794-5906
andy.craig@golfsmith.com
Or
Melanie Engerski, 512-794-9147
engerski@swbell.net