CORRECTING and REPLACING Pier 1 Imports, Inc. Reports May Sales.

Business Editors

CORRECTION...by Pier 1 Imports 

FORT WORTH, Texas--(BUSINESS WIRE)--June 3, 2004

In BW5098 issued June 3, 2004: First graph, last sentence of release should read: First quarter and year-to-date sales of $432,027,000 were up 7.3% from last year's $402,712,000 and comparable store sales declined 1.8%. (sted First quarter and year-to-date sales of $432,027,000 were up 7.3% from last year's $402,712,000 and comparable store sales declined 8%).

The corrected release reads:

PIER 1 IMPORTS, INC. REPORTS MAY SALES

Pier 1 Imports, Inc. (NYSE:PIR) reported today that sales for the four-week period ended May 29, 2004, aggregated $133,609,000 an increase of 1.2% from $132,016,000 last year. Comparable store sales declined by 7.6% versus the previous guidance of -4% to -6%. First quarter and year-to-date sales of $432,027,000 were up 7.3% from last year's $402,712,000 and comparable store sales declined 1.8%.

Marvin J. Girouard, Chairman and Chief Executive Officer, commented, "May sales were attributable to the disappointing promotional events over Mother's Day weekend and Memorial Day. In particular, sales in the northeast and in the midwest continue to be softer than the rest of the country. We expect June comp store sales to decrease in a range of -7% to -9% based on the trend we saw in April and May and because of a shift in the timing of the promotional calendar into July.

In July, we believe customers will respond positively to our marketing plans featuring a new TV ad with Thom Filicia, the "One Big Sale" newspaper insert, and innovative visual presentations for the new "Back-to-College" merchandise assortment. Although traffic, conversion rate, and average ticket all declined in May, we are optimistic that these initiatives will improve sales going forward.

We are very disappointed with our sales to date in fiscal 2005, and are working on all aspects of the business to improve both sales and profitability in the remaining quarters of the fiscal year."

The Company will report first quarter results on June 15, 2004, and now projects diluted earnings per share of $0.12 to $0.14, down from previous guidance of $0.14 to $0.17 for the first quarter ended May 29, 2004 due to the sales shortfall in May.

Any forward-looking projections or statements made in this press release should be considered in conjunction with the cautionary statements contained in the Company's most recent filed Form 10-K for fiscal year 2004. Management's expectations and assumptions regarding planned store openings, financing of Company obligations from operations and other future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Risks and uncertainties that may affect Company operations and performance include, among others, the effects of terrorist attacks or other acts of war, conflicts or war involving the United States or its allies or trading partners, labor strikes, weather conditions that may affect sales, volatility of fuel and utility costs, the general strength of the economy and levels of consumer spending, consumer confidence, the availability of new sites for expansion along with sufficient labor to facilitate growth, the strength of new home construction and sales of existing homes, the availability and proper functioning of technology and communications systems supporting the Company's key business processes, the ability of the Company to import merchandise from foreign countries without significantly restrictive tariffs, duties or quotas and the ability of the Company to source, ship and deliver items from foreign countries to its U.S. distribution centers at reasonable prices and rates and in a timely fashion. The Company assumes no obligation to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied will not be realized.

Pier 1 Imports, Inc. is North America's largest specialty retailer of imported decorative home furnishings and gifts with Pier 1 Imports(R) stores in 50 states, Puerto Rico, Canada, and Mexico; The Pier(R) stores primarily in the United Kingdom; and Cargokids(R) stores.