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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 BBWa+i9lvvVT+QmRjuFYdFvQL73MnyP/Jxiz5Fy3VP9wybAurj7QJJndlT4lsi2/
 gKlIGfXdQ8hulZYsNZRbkA==

<SEC-DOCUMENT>0001179110-03-009160.txt : 20031023
<SEC-HEADER>0001179110-03-009160.hdr.sgml : 20031023
<ACCEPTANCE-DATETIME>20031023183033
ACCESSION NUMBER:		0001179110-03-009160
CONFORMED SUBMISSION TYPE:	4/A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030709
FILED AS OF DATE:		20031023

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FAO INC
		CENTRAL INDEX KEY:			0000878720
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-CATALOG & MAIL-ORDER HOUSES [5961]
		IRS NUMBER:				953971414
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0130

	BUSINESS ADDRESS:	
		STREET 1:		2520 RENAISSANCE BOULEVARD
		STREET 2:		.
		CITY:			KING OF PRUSSIA
		STATE:			PA
		ZIP:			19406
		BUSINESS PHONE:		6102787800

	MAIL ADDRESS:	
		STREET 1:		2520 RENAISSANCE BOULEVARD
		STREET 2:		.
		CITY:			KING OF PRUSSIA
		STATE:			PA
		ZIP:			19406

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	RIGHT START INC /CA
		DATE OF NAME CHANGE:	19930328

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			KAYNE FRED
		CENTRAL INDEX KEY:			0000949806

	FILING VALUES:
		FORM TYPE:		4/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19536
		FILM NUMBER:		03954961

	BUSINESS ADDRESS:	
		STREET 1:		FORTUNE FINANCIAL
		STREET 2:		1800 AVENUE OF THE STARS, SUITE 1112
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90067
		BUSINESS PHONE:		3105562721

	MAIL ADDRESS:	
		STREET 1:		C/O FORTUNE FINANCIAL
		STREET 2:		1800 AVENUE OF THE STARS STE 310
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90067
</SEC-HEADER>
<DOCUMENT>
<TYPE>4/A
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4/A -
<TEXT>
<XML>
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4/A</documentType>
<periodOfReport>2003-07-09</periodOfReport>
<dateOfOriginalSubmission>2003-07-10</dateOfOriginalSubmission>
<notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000878720</issuerCik>
        <issuerName>FAO INC</issuerName>
        <issuerTradingSymbol>FAOO</issuerTradingSymbol>
</issuer>
<reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000949806</rptOwnerCik>
            <rptOwnerName>KAYNE FRED</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>FORTUNE FASHIONS</rptOwnerStreet1>
            <rptOwnerStreet2>1800 AVENUE OF THE STARS SUITE 310</rptOwnerStreet2>
            <rptOwnerCity>LOS ANGELES</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>90040</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector>
<isOfficer>0</isOfficer>
<isTenPercentOwner>1</isTenPercentOwner>
<isOther>0</isOther>
<officerTitle></officerTitle>
<otherText></otherText>
</reportingOwnerRelationship>
</reportingOwner>
<nonDerivativeTable></nonDerivativeTable>
<derivativeTable><derivativeTransaction><securityTitle><value>Obligation to buy Warrants</value>
</securityTitle>
<conversionOrExercisePrice><footnoteId id="F1"></footnoteId>
</conversionOrExercisePrice>
<transactionDate><value>2003-07-09</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>X</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
<footnoteId id="F1"></footnoteId>
</transactionCoding>
<transactionAmounts><transactionShares><value>131935</value>
<footnoteId id="F2"></footnoteId>
</transactionShares>
<transactionPricePerShare><footnoteId id="F1"></footnoteId>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>D</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><value>2003-06-01</value>
</exerciseDate>
<expirationDate><value>2003-11-30</value>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Warrants to buy</value>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>131935</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</derivativeTransaction>
<derivativeTransaction><securityTitle><value>Warrants to Buy</value>
</securityTitle>
<conversionOrExercisePrice><value>1.50</value>
</conversionOrExercisePrice>
<transactionDate><value>2003-07-09</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>X</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
<footnoteId id="F1"></footnoteId>
</transactionCoding>
<transactionAmounts><transactionShares><value>131935</value>
</transactionShares>
<transactionPricePerShare><footnoteId id="F1"></footnoteId>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>A</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><value>2003-07-09</value>
</exerciseDate>
<expirationDate><value>2008-07-09</value>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>131935</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>131935</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</derivativeTransaction>
</derivativeTable>
<footnotes><footnote id="F1">Exercise of obligation to buy Warrants, in which the Issuer exercised the right to require Mr. Kayne to secure a letter of credit in favor of the Issuer, and the Issuer issued Warrants to Mr. Kayne in payment therefor.  Mr. Kayne provided $800,000 of cash collateral in support of such letter of credit.  This exercise transaction is exempt under Rule 16b-6(b) and Rule 16b-3 (transaction Code M would also apply).</footnote>
<footnote id="F2">Common share equivalents and prices take into account a 1:15 reverse stock split completed on April 22, 2003.</footnote>
</footnotes>
<ownerSignature><signatureName>Fred Kayne, /s/ Kendrick F. Royer, by power of attorney</signatureName>
<signatureDate>2003-10-23</signatureDate>
</ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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