Exhibit 99.1

** NEWS RELEASE **

HOT TOPIC, INC. REPORTS 2^nd QUARTER

LOSS OF $0.04 PER SHARE

Provides guidance for the 3^rd and 4^th quarters of 2007

CITY of INDUSTRY, CA, August 22, 2007 — Hot Topic, Inc. (Nasdaq Global Select Market: HOTT), today announced that the company incurred a net loss in the fiscal second quarter of 2007 (13 weeks ended August 4, 2007) of $1.7 million, or $0.04 per share, compared with a net loss of $0.9 million, or $0.02 per share, in the fiscal second quarter of 2006 (13 weeks ended July 29, 2006).

As previously reported, total sales for the 13 weeks ended August 4, 2007 increased 1% to $161.7 million compared to $160.3 million for the 13 week period ended July 29, 2006. Comparable store sales declined 5.8% for the second quarter of 2007. Due to a 53rd week in fiscal 2006, second quarter comparable store sales are compared to the corresponding 13 week period ended August 5, 2006.

At the end of second quarter fiscal 2007, the company operated 693 Hot Topic stores and 133 Torrid stores compared to 682 Hot Topic stores and 127 Torrid stores at the end of second quarter fiscal 2006. During second quarter fiscal 2007, the company opened a total of two Hot Topic stores and four Torrid stores and closed four Hot Topic stores and two Torrid stores. The company also remodeled or relocated 27 Hot Topic stores during the quarter, bringing the total number of remodeled or relocated stores during the year-to-date period to 44.

The company issued third quarter (13 weeks ending November 3, 2007) guidance of earnings in the range of $0.13 to $0.16 per diluted share based upon a comparable store sales decline of low-single digits. The company also issued fourth quarter (13 weeks ending February 2, 2008) guidance of earnings in the range of $0.29 to $0.33 per diluted share based upon a comparable store sales decline of low-single digits.

A conference call to discuss second quarter, business trends, guidance and other matters is scheduled for today at 4:30 PM (ET). The conference call number is 800-901-5218, pass code “Hot Topic”, and the call will be accessible to all interested parties. It will also be webcast at www.earnings.com. A replay will be available at 888-286-8010, pass code 23534375, 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 August 4, 2007 the company operated 693 Hot Topic stores in all 50 states and Puerto Rico, 133 Torrid stores, and Internet stores 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, store operations, projections and other financial performance and managing growth. 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 February 3, 2007. 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.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

	Second Quarter Ended
	Aug. 4, 2007			Jul. 29, 2006
Net sales	$	161,684		$	160,348
Cost of goods sold, including buying, distribution and occupancy costs		110,728			109,514
Gross margin		50,956			50,834
Selling, general & administrative expenses		54,313			52,540
Loss from operations		(3,357	)		(1,706	)
Interest income-net		554			239
Loss before benefit for income taxes		(2,803	)		(1,467	)
Benefit for income taxes		(1,074	)		(562	)
Net loss		(1,729	)		(905	)
Loss per share
Basic	$	(0.04	)	$	(0.02	)
Diluted	$	(0.04	)	$	(0.02	)
Shares used in computing loss per share:
Basic		44,349			44,180
Diluted		44,349			44,180

	Six Months Ended
	Aug. 4, 2007			Jul. 29, 2006
Net sales	$	318,966		$	314,389
Cost of goods sold, including buying, distribution and occupancy costs		216,422			215,295
Gross margin		102,544			99,094
Selling, general & administrative expenses		107,717			103,485
Loss from operations		(5,173	)		(4,391	)
Interest income-net		1,060			642
Loss before benefit for income taxes		(4,113	)		(3,749	)
Benefit for income taxes		(1,575	)		(1,436	)
Net loss		(2,538	)		(2,313	)
Loss per share
Basic	$	(0.06	)	$	(0.05	)
Diluted	$	(0.06	)	$	(0.05	)
Shares used in computing loss per share:
Basic		44,297			44,122
Diluted		44,297			44,122

HOT TOPIC, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	Aug. 4, 2007		Jul. 29, 2006
Current Assets:
Cash, cash equivalents and short-term investments	$	49,071	$	19,883
Inventory		93,515		106,227
Prepaid expenses and other		15,118		17,277
Deferred tax assets		3,973		2,487
Total current assets		161,677		145,874
Property and equipment, net		169,024		174,070
Deposits and other		1,130		249
Deferred tax assets		4,119		—
Total assets	$	335,950	$	320,193
Current Liabilities:
Accounts payable	$	41,716	$	47,429
Accrued liabilities		31,238		27,595
Total current liabilities		72,954		75,024
Deferred rent		39,375		41,224
Deferred compensation liability		890		—
Income taxes payable		1,258		—
Deferred tax liability		—		209
Total liabilities		114,477		116,457
Shareholders’ equity		221,473		203,736
Total liabilities and shareholders’ equity	$	335,950	$	320,193

HOT TOPIC, INC.

OTHER DATA

(Dollars in thousands)

(Unaudited)

	Six Months Ended
	Aug. 4, 2007		Jul. 29, 2006
Depreciation and amortization	$	21,138	$	18,693
Capital expenditures	$	23,956	$	21,753
Number of stores open at end of period:
Hot Topic		693		682
Torrid		133		127
Total store square footage		1,549,700		1,505,200