Exhibit 99.1

** NEWS RELEASE **

HOT TOPIC, INC. REPORTS THIRD QUARTER FINANCIAL RESULTS

CITY of INDUSTRY, CA, November 16, 2005 -- Hot Topic, Inc. (Nasdaq National Market: HOTT), reported net income for the quarter ended October 29, 2005 of $5.9 million or $0.13 per diluted share, compared to $12.4 million or $0.26 per diluted share for the same period last fiscal year. Included in the third quarter results is a charge of $1.5 million, or $0.02 per diluted share, included in selling, general and administrative expenses as a provision for potential liabilities associated with two related California wage and hour lawsuits.

As previously reported, net sales for the third quarter increased 7% to $192.7 million from $180.8 million for the third quarter of fiscal 2004. Comparable store sales decreased 6.2% for the quarter compared to a decrease of 4.2% in the third quarter of fiscal 2004.

At the end of the quarter, the company operated 648 Hot Topic stores and 114 Torrid stores compared to 580 Hot Topic stores and 69 Torrid stores at the end of the third quarter of fiscal 2004. During fiscal 2005 year-to-date, the company has opened 56 Hot Topic stores and 39 Torrid stores. The company now expects to open approximately 115 new stores in 2005. This includes an estimated 70 new Hot Topic stores, five more than the previously announced 65 Hot Topic stores, and an estimated 45 new Torrid stores. The company expects to end the year operating 662 Hot Topic stores and 120 Torrid stores.

A conference call to discuss third quarter results, business trends, and other matters will be conducted today at 4:30 PM Eastern time. The conference call number is 866-825-3308, pass code “Hot Topic”, and will be accessible to all interested parties. The conference call will also be webcast at www.companyboardroom.com. A replay will be available at 888-286-8010, pass code 86695266, for approximately two weeks.

Hot Topic, Inc. is a national mall-based specialty retailer. Hot Topic offers apparel, accessories and gifts to young men and women principally between the ages of 12 and 22. Torrid, the company’s second concept, provides plus-size fashion-forward apparel and accessories that target young women principally between the ages of 15 and 29. As of October 29, 2005, the company operated 648 Hot Topic stores in all 50 states and Puerto Rico and 114 Torrid stores. The company also operates e-commerce websites at www.hottopic.com and www.torrid.com.

In addition to historical information, this news release and the aforementioned conference call contain forward-looking statements, which include statements relating to financial results, guidance, projections and other financial performance, managing growth, and litigation matters and contingent liabilities. 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 comparable store sales results, risks and uncertainties with respect to new store openings including risks associated with the company’s new store concepts and Internet stores, music and fashion trends, competition from other retailers, uncertainties generally associated with specialty retailing, the effect of economic conditions, the effect of severe weather or natural disasters, political and/or social changes or events that could negatively impact shopping patterns and/or mall traffic, litigation proceedings and contingent liabilities, as well as other risks detailed in the company’s SEC reports including its Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K for the year ended January 29, 2005. Historical results achieved are not necessarily indicative of the future prospects of the company, and actual results or circumstances could differ materially from the forward-looking statements.

Contact:

Hot Topic, Inc., City of Industry, CA

Mr. Jim McGinty, CFO 626-839-4681 x2675

Ms. Megan Hall, Manager of I.R. 626-839-4681 x2173

HOT TOPIC, INC.

SUMMARY STATEMENTS OF INCOME

(Unaudited)

	Third Quarter Ended
	Oct. 29, 2005		Oct. 30, 2004 (restated)
(In thousands, except per share amounts)
Net sales	$	192,747	$	180,808
Cost of goods sold, including buying, distribution and occupancy costs		129,271		116,268
Gross margin		63,476		64,540
Selling, general and administrative expenses		54,043		44,553
Operating income		9,433		19,987
Interest income-net		180		188
Income before income taxes		9,613		20,175
Provision for income taxes		3,682		7,727
Net income	$	5,931	$	12,448
Earnings per share
Basic	$	0.13	$	0.27
Diluted	$	0.13	$	0.26
Weighted average shares outstanding
Basic		45,108		46,086
Diluted		45,738		47,202
	Nine Months Ended
	Oct. 29, 2005		Oct. 30, 2004 (restated)
(In thousands, except per share amounts)
Net sales	$	494,743	$	445,214
Cost of goods sold, including buying, distribution and occupancy costs		332,479		289,839
Gross margin		162,264		155,375
Selling, general and administrative expenses		143,942		120,053
Operating income		18,322		35,322
Interest income-net		840		744
Income before income taxes		19,162		36,066
Provision for income taxes		7,339		13,813
Net income	$	11,823	$	22,253
Earnings per share
Basic	$	0.26	$	0.47
Diluted	$	0.26	$	0.46
Weighted average shares outstanding
Basic		44,978		46,857
Diluted		46,064		48,468

HOT TOPIC, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	Oct. 29, 2005		Oct. 30, 2004 (restated)
Current Assets:
Cash, cash equivalents and short-term investments	$	19,917	$	41,704
Inventory		96,404		78,814
Prepaid expenses and other		19,258		14,953
Deferred tax assets		2,541		2,259
Total current assets		138,120		137,730
Property and equipment - net		173,712		130,685
Deposits and other		248		242
Total assets	$	312,080	$	268,657
Current Liabilities:
Accounts payable	$	29,141	$	16,498
Accrued liabilities		35,545		28,185
Income taxes payable		-		8,358
Total current liabilities		64,686		53,041
Deferred rent		38,624		29,131
Deferred tax liability		5,994		1,501
Total liabilities		109,304		83,673
Shareholders’ equity		202,776		184,984
Total liabilities and shareholders’ equity	$	312,080	$	268,657

HOT TOPIC, INC.

OTHER DATA

(Dollars in thousands)

(Unaudited)

	Nine Months Ended
	Oct. 29, 2005		Oct. 30, 2004 (restated)
Depreciation and amortization	$	23,526	$	17,893
Capital expenditures	$	61,101	$	46,081
Number of stores open at end of period:
Hot Topic		648		580
Torrid		114		69
Total store square footage		1,409,300		1,177,600