EXHIBIT 99.1

** NEWS RELEASE **                                      Contact:
                                                        MR. JAY A. JOHNSON
                                                        CHIEF FINANCIAL OFFICER
                                                        Hot Topic, Inc.
                                                        (626) 839-4681


               BOARD OF DIRECTORS DECLARES TWO-FOR-ONE STOCK SPLIT

CITY OF INDUSTRY, CA, Dec. 1, 2000 -- Hot Topic, Inc. (NasdaqNM:HOTT), a
mall-based specialty retailer of music-licensed and music-influenced apparel,
accessories and gift items for teens, announced today that its Board of
Directors has declared a two-for-one split (in the form of a dividend) of its
common stock.

On the effective date of December 27, 2000, shareholders will receive a dividend
of one additional share for every share they own on the record date of December
14, 2000. Following the effective date of the split, Hot Topic will have
approximately 20.1 million shares outstanding. The Company previously split its
stock, also two-for-one, on December 28,1999.

Betsy McLaughlin, President and Chief Executive Officer, said, "We are pleased
to announce the second split of our stock since the September 1996 Initial
Public Offering. We believe that the stock split should benefit Hot Topic
stockholders by making our stock more accessible to all investors, and by
increasing liquidity."

McLaughlin continued, "Our business is strong; we have reported seven
consecutive quarters of double digit comp sales increases, and earnings grew
126% in fiscal 1999 and have grown 92% in the first nine months of fiscal 2000.
We are well positioned for Holiday and confident in our ability to expand and
grow Hot Topic over the long-term."

Hot Topic, Inc. is a mall-based specialty retailer of music-licensed and
music-influenced apparel, accessories and gift items for young men and women
principally between the ages of 12 and 22. The Company currently operates 274
stores in 45 states throughout the United States, and an Internet store
www.hottopic.com.

Except for the historical information contained herein, this news release
contains forward-looking statements, including statements relating to the stock
split and effects relating thereto and to new store openings and expected
financial results. These statements involve risks and uncertainties, including
risks and uncertainties associated with meeting expected financial results,
management of growth, relationships with mall developers and operators, the risk
that available cash or mall space will not be adequate for planned expansion,
fluctuations in sales and comp store sales results, risks and uncertainties with
respect to new store openings including risks associated with the Company's new
store concepts and Internet store, music and fashion trends, competition from
other retailers, uncertainties generally associated with specialty retailing, as
well as other risks detailed from time to time in the Company's Securities and
Exchange Commission reports, including its Annual Report on Form 10-K for the
year ended January 29, 2000. The historical results achieved are not necessarily
indicative of future prospects of the Company.