CONTACT:       Bruce Zurlnick                 Melissa Myron / Rachel Albert
               Senior Vice President and      Media Contact:  Melissa Merrill
               Chief Financial Officer        Financial Dynamics
               Finlay Enterprises, Inc.       (212) 850-5600
               (212) 808-2800

FOR IMMEDIATE RELEASE
---------------------

        FINLAY ENTERPRISES REPORTS SALES FOR THE NOVEMBER/DECEMBER PERIOD

NEW YORK, NY, JANUARY 5, 2006 -- FINLAY ENTERPRISES, INC. (NASDAQ: FNLY), a
leading retailer of fine jewelry and the largest operator of licensed fine
jewelry departments in department stores throughout the United States, announced
today that comparable department sales (departments open for the same months
during the comparable period) for the two-month period including November and
December increased 1.0% in its go-forward doors. The go-forward doors exclude
the 196 stores that Finlay will no longer operate in 2006 as a result of
Federated's integration plans. Comparable department sales for the two-month
period including discontinued stores decreased 0.6%. Total sales for the
two-month period increased 9.9% to $385.3 million compared to $350.6 million in
the comparable period of 2004.

Comparable department sales for the 11-month period ended December 31, 2005
increased 0.7%, including only the go-forward doors for the November and
December period. Comparable department sales for the 11-month period including
discontinued stores increased 0.1%. Total sales for the 11 months increased 6.8%
to $954.1 million compared to $893.6 million in the first 11 months of 2004.

As a result of lower sales than previously projected for the November/December
period, the Company now estimates full year diluted earnings per share of $1.65
to $1.75. The Company's previous earnings estimate was $1.80 to $2.00 for fiscal
2005, which was based on comparable store sales in the range of 2.5% to 3.0% for
the November/December period. The Company's outlook for fiscal 2005 excludes
charges associated with the impairment of goodwill and includes $3.6 million, or
$0.23 per diluted share, of pre-tax closing costs. This outlook compares to
diluted earnings per share of $2.25 in fiscal 2004, excluding the costs of
refinancing long term debt and tax credits associated with the liquidation of
Sonab, the Company's former European division.

Arthur E. Reiner, Chairman and Chief Executive Officer of Finlay Enterprises,
Inc., commented, "After a softer than expected November, sales in our continuing
stores rebounded in December and the holiday season finished strongly. Also, we
were pleased with our results at Carlyle and believe it will continue to be an
important platform for future growth. We continued to maintain a tight focus on
operating expenses and effectively managed our inventory levels. As we conclude
fiscal year 2005, we are positioned to take advantage of opportunities that
develop in the new year."

Mr. Reiner concluded, "During the quarter, we signed a new thee-year agreement
with Federated for the four Macy's divisions in which we currently operate, and
we look forward to an exciting future with the newly-structured divisions. In
addition, after Federated announced its plan to realign the May Company stores,
we began to take the necessary steps to prepare for an orderly transition of the
existing stores that will become part of Macy's East and Macy's West. We have
initiated merchandising and marketing strategies in the stores that we will
close, which will allow us to discontinue operations in a fiscally responsible
manner."

Finlay Enterprises, Inc., through its wholly-owned subsidiary, Finlay Fine
Jewelry Corporation, is one of the leading retailers of fine jewelry and the
largest operator of leased fine jewelry departments in department stores
throughout the United States. The number of locations at the end of December
2005 totaled 1,012, including 34 Carlyle specialty jewelry stores.







This release may contain forward-looking statements, which are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are based on Finlay's current expectations
and beliefs, are not a guarantee of future performance and involve known and
unknown risks, uncertainties and other factors. Actual results, performances or
achievements may differ materially from those contained in, or implied by, these
forward-looking statements, depending upon a variety of factors including, in
particular, the risks and uncertainties described in Finlay's filings with the
Securities and Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. We undertake no obligation to release publicly any revisions to these
forward looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events. The
inclusion of any statement in this release does not constitute an admission by
Finlay or any other person that the events or circumstances described in such
statement are material.

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