Cache Reports 2 Percent Comparable Store Sales Increase in July 2006.

NEW YORK -- Cache Inc., (NASDAQ: CACH), a specialty chain of women's apparel stores with 301 stores open, reported July 2006 sales figures. As previously announced, the Company plans to exit its Lillie Rubin business by the end of September 2006. Therefore, the Company's comparable store sales results only include its 272 Cache stores.

Comparable store sales for Cache stores increased 2% during the four week July 2006 period compared to an increase of 10% in the prior year period. Total sales for the four week period ended July 29, 2006 increased $0.5 million or 3% to $16.0 million.

Comparable store sales increased 5% during the 30 week period ended July 29, 2006, as compared to the same period in 2005. Total sales for the 30 week period ended July 29, 2006 increased $6.2 million or 4% to $151.5 million.

Mr. Brian Woolf, Cache's Chairman commented: "We were pleased with our July comparable store sales increase of 2%, especially given that clearance inventory levels were well below last year. As we look ahead, we have shifted a promotional event out of August to prepare for our intensified advertising efforts that begin in September. As a result, we expect to report August comparable store sales similar to July with more robust growth expected in the fall and holiday periods."

The Company also noted that it closed 8 Lillie Rubin stores in July. The Company currently operates 272 Cache and 29 Lillie Rubin locations.

Certain matters discussed within this press release may constitute forward-looking statements within the meaning of the federal securities laws. Although Cache, Inc. believes the statements are based on reasonable assumptions, there can be no assurance that these expectations will be attained. Actual results and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation, ability to successfully open new stores, introduction of the Cache Luxe concept, dependence on management, dependence on vendors and distributors, reliance on foreign manufacturers, material weakness in our internal controls, industry trends, merchandise and fashion trends, competition, seasonality and changes in general economic conditions and consumer spending patterns, as well as other risks outlined from time to time in the filings of Cache, Inc. with the Securities and Exchange Commission.

For further information contact Thomas E. Reinckens, President, Chief Operating Officer, Cache, Inc., 1440 Broadway, New York, New York 10018, [phone].