Cache Reports Comparable Store Sales in March Were Flat.

Revises First Quarter and Fiscal 2007 Guidance

Announces Participation in SunTrust Robinson Humphrey Conference

NEW YORK -- Cache Inc. (NASDAQ: CACH) today announced that comparable store sales (sales for stores open at least one year or more) in March 2007 were flat, as compared to a 7% increase in comparable store sales in March 2006. Total sales for the five-week period ended March 31, 2007 decreased 0.7% to $29.1 million, as compared to the five-week period ended April 1, 2006. Comparable store sales increased 3% during the 13 week period ended March 31, 2007, as compared to a 4% increase for the same period in 2006. Total sales for the 13 week period increased $0.5 million or 0.8% to $64.3 million. March 2007 sales do not include the pre-Easter week, which will be included in April 2007 sales.

Based on reported first quarter 2007 sales, the Company is revising its sales and earnings guidance for the first quarter and fiscal 2007 year while introducing second quarter fiscal 2007 guidance. For the first quarter of fiscal 2007 diluted earnings per share are currently estimated in the range of $0.00 to $0.01, as compared to the Company's previous first quarter fiscal 2007 earnings guidance range of $0.17 - $0.19 per diluted share and versus actual first quarter fiscal 2006 diluted earnings per share of $0.11. The Company is scheduled to report full results for the first quarter ended March 31, 2007 the first week of May 2007.

"Our March sales were disappointing reflecting an unfavorable response to the big-over- skinny trend that we felt strongly about as we began the quarter. This created higher-than- anticipated markdowns and combined with soft February sales and the resulting lack of leverage on increased marketing costs caused us to significantly reduce our expectations for the first quarter," began Brian Woolf, Cache Chairman. "Importantly, sales in the latter part of March were encouraging and we are optimistic as consumers are responding well to several new trends, such as daytime dresses, Bermuda shorts and prints."

Second Quarter Fiscal 2007 and Full Year Fiscal 2007 Guidance

The Company is introducing diluted earnings per share guidance for the second quarter of fiscal 2007 in the range of $0.20 to $0.24, as compared to actual second quarter fiscal 2006 diluted earnings per share of $0.10, which included $0.21 per diluted share in costs related to the exit of the Company's Lillie Rubin chain and $0.05 in Lillie Rubin losses. Net sales for the second quarter of fiscal 2007 are estimated in the range of $73 million to $75 million, as compared to actual second quarter fiscal 2006 net sales of $71.7 million. The Company anticipates that merchandise margins will be pressured in the second quarter due to beginning the period with slightly higher inventory levels versus plan. This should be somewhat mitigated by lower sourcing costs due to the move to internally sourced products.

The Company currently expects fiscal 2007 diluted earnings per share to be in the range of $0.75 to $0.80, as compared to its previous earnings guidance range of $1.15 to $1.20 per diluted share and actual fiscal 2006 diluted earnings per share of $0.51. Net sales for fiscal 2007 are currently estimated in the range of $284 million to $290 million, as compared to the Company's previous guidance range of $296 million to $302 million and versus actual net sales of $279 million in fiscal 2006.

Mr. Woolf added: "We continue to be optimistic about our prospects for the balance of the year. To this point, we believe our unique ability to offer fashionable apparel and accessories for the missy customer along with our enhanced marketing efforts will lead to improved sales momentum as we continue to satisfy current shoppers while reaching new consumers. We also remain on track to benefit from our increased emphasis on direct sourcing and plan for 10 to 15 new stores this year. While we anticipate some additional markdown pressure in the second quarter, we expect to reach many important milestones, including the launch of our new customer loyalty program and report strong profit growth in fiscal 2007."

Conference Participation

Separately, the Company announced that it will be presenting at SunTrust Robinson Humphrey's 36th Annual Institutional Investor Conference held at the Ritz-Carlton in Atlanta, Georgia today at 1:05 PM Eastern Time. Brian Woolf, Chairman and Chief Executive Officer, and Tom Reinckens, President and Chief Financial Officer, will host the presentation. The conference presentation will also be webcast live at http://www.cache.com.

About Cache, Inc.

Cache is a nationwide, mall-based specialty retailer of sophisticated, social occasion sportswear and dresses targeting style-conscious women. Cache targets women between the ages of 25 and 45 who have a youthful attitude, are self-confident and fashion-conscious, and require a missy fit. We operate 295 Cache and Cache Luxe stores primarily situated in central locations in high traffic, upscale malls in 44 states, the Virgin Islands and Puerto Rico.

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.