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MINNEAPOLIS, Oct. 6 /PRNewswire-FirstCall/ -- Piper Jaffray & Co. Senior Retail Analyst Jeff Klinefelter and a collaborative team of other senior research analysts recently released the results of the 10th bi-annual proprietary research survey on teen spending habits and retail brand perceptions, titled "Taking Stock With Teens." Klinefelter and team conducted mall research field trips with approximately 700 teens from 11 high schools in nine states across the country. Additionally, the team surveyed another 2,270 students in 41 states and Canada through a partnership with the national DECA organization in an online survey.

Overall, the survey shows that total fashion spending by students remained flat year-over-year with footwear showing gains and accessories declining. However, spending frequency on fashion products is up significantly from last fall and teens continue to spend 40 percent of their budget on fashion.

"Our 'discretionary recovery' thesis remains intact as our legacy survey points to significantly higher spending on fashion products for the average household income of the $75,000 sample, versus the $42,000 sample from our online DECA survey," said Klinefelter. "We also noted a distinct difference in preferred brands between the two samples. In addition, apparel spending by parents whether for themselves or for their teens appears to be ticking up when compared with spring 2005."

Brand Preferences Survey Results:

Klinefelter and team surveyed teens on their favorite places to shop as well as their spending habits. Based on their responses, Hollister, a concept of Abercrombie & Fitch, took the top spot as the most frequent overall destination for the second consecutive survey capturing 13 percent of mind share votes, followed by Abercrombie & Fitch with 10 percent mind share. In third place is Pacific Sunwear with nine percent of mind share votes. In fourth place is American Eagle with nine percent of mind share votes followed by d.e.m.o., a concept of Pacific Sunwear, in fifth place with four percent of votes cast and Nordstrom in sixth place also garnering four percent of the votes.

"We are encouraged by the continuing dominance of Abercrombie & Fitch, taking the top two preferred brand spots with Hollister on top and Abercrombie & Fitch a close second," said Klinefelter. "Notably, in this survey both Gap and Express dropped out of the top ten ranking, while Nordstrom moved up appreciably from 10th to sixth and Hot Topic made its debut in the top 10, taking the number 10 spot."

The students were also surveyed on video game products and other consumer electronics. Results of the survey point out 79 percent of student households have at least one video game platform and 58 percent of students stating that they are occasional game players (playing at least monthly). In addition, 65 percent of student households own Sony's PS2, 50 percent own Microsoft's Xbox and 26 percent own Nintendo's GameCube. GameStop was recognized in the survey as the leading retailer for pre-owned video games with 60 percent market share and 29 percent market share for teen video game purchases. The survey also pointed out that 75 percent of teens say their interest in video games is declining and 78 percent indicated they spent less time playing in 2005.

In addition to video game products, the students were surveyed about portable digital audio players. Apple continues to lead market share for digital audio players and online music and this survey shows it has continued to grow market share. For students who own an MP3 player, 74 percent indicated that they own some form of iPod, which is up from 56 percent in the spring 2005 survey. For online music services, 64 percent of students indicated they used iTunes, up from 60 percent in the spring 2005 survey.

Teen and Parent Spending

Total spending on fashion products (apparel, shoes and accessories) for teens by parents rose 35 percent when compared with spring 2005. Parents indicated in the survey that annual spending on teen apparel came in at $1,413, versus $1,048 in spring 2005. When spending on themselves, parent spending ticked up nine percent to $1,526 from $1,398 in spring 2005 and compares with a nine-survey average of $1,230 and is near peak spending of $1,571.

Parents were also surveyed on their intent to buy high-end electronics. According to the survey, the intent to purchase a Plasma/LCD TV within the next six months dropped from 40 percent in the spring 2005 survey to 11 percent in this survey. This data was however offset by the increase in the percentage of people expecting to buy (or already bought) these products. Also, Best Buy and Circuit City continue to be the destination of choice with over 50 percent market share for TV and home theater/surround sound systems.

Lastly, parents were surveyed on teen home/room furnishings. The survey points to increased spending on teen home/room furnishings to $438 on an annualized basis from $345 in the spring 2005 survey and $297 in the fall 2004 survey. When asked to select their favorite home/room furnishings store for themselves, parents ranked IKEA as their top choice with Pottery Barn and Federated Department Stores tied in second place. Among the high school students surveyed, IKEA has maintained its top-of-mind position as a preferred destination for home/room furnishings with mind share gains increasing from 16 percent in spring 2005 to 22 percent this fall. Pottery Barn remains in second place and Target is in third.

Piper Jaffray & Co. is the chief operating subsidiary of Piper Jaffray Companies (NYSE: PJC), a focused securities firm dedicated to delivering superior financial advice, investment products and transaction execution within selected sectors of the financial services marketplace. The company operates through two primary revenue-generating segments: Capital Markets and Private Client Services. Piper Jaffray & Co. has served corporations, government and non-profit entities, institutional investors and the financial advisory needs of private individuals since 1895. With headquarters in Minneapolis, Piper Jaffray has approximately 3,000 employees in 104 offices in 23 states across the country and in London. For more information about Piper Jaffray, visit us online at .


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SOURCE  Piper Jaffray & Co.
    -0-                             10/06/2005
    /CONTACT:  Susan Beatty, Media Relations of Piper Jaffray,
    /Web site: /

CO:  Piper Jaffray & Co.; Piper Jaffray Companies
ST:  Minnesota

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