Cache Reports September Sales and Increases Guidance; Company Increases Third Quarter and Fiscal 2005 Guidance; September Comparable Store Sales Increase 6%.

NEW YORK -- Cache Inc., (NASDAQ: CACH), a specialty chain of women's apparel stores with 301 stores open, reported September 2005 sales figures.

Comparable Store Sales: (sales for stores open at least one year or more)

--Increased 6% during the five week September 2005 period, as compared to the same period in 2004.

--Increased 8% during the 13 week period ended October 1, 2005, as compared to the same period in 2004; and

--Increased 5% during the 39 week period ended October 1, 2005, as compared to the same period in 2004.

Total Sales:

--Increased $2.2 million or 9.7% to $24.8 million for the five week period ended October 1, 2005;

--Increased $6.5 million or 12.8% to $57.3 million for the 13 week period ended October 1, 2005; and

--Increased $19.0 million or 11.3% to $187.0 million for the 39 week period ended October 1, 2005.

Mr. Brian Woolf, Cache's Chairman commented: "Our offerings continued to resonate well with consumers, as evidenced by our 6% increase in comparable store sales for September. Hurricane Rita lowered comparable store sales by approximately 1%, from 7% to our reported 6%. Sales were driven by casual sportswear and accessories, with margins well above the prior year. As we look ahead, we expect our favorable momentum to continue and have increased our earnings guidance to reflect our better than expected results this month and in the third quarter."

The Company currently estimates third quarter diluted earnings per share in the range of $0.04 to $0.06, compared to its previous guidance of $0.02 to $0.04 per share and actual net loss per share of $0.03 in the third quarter of fiscal 2004. For the fiscal 2005 year, the Company continues to estimate net sales in the range of $271 million to $275 million, versus actual net sales of $247.3 million in fiscal 2004. Additionally, the Company now estimates diluted earnings per share in the range of $0.80 to $0.83 for fiscal 2005, compared to the previous guidance range of $0.78 to $0.81 and versus actual fiscal 2004 diluted earnings per share of $0.83.

During September the Company opened four new stores and closed one store. For the year-to-date period, the Company has opened 14 new stores and has closed 4 stores in Fiscal 2005 and expects to open approximately another 6 stores for a total of approximately 20 new stores in Fiscal 2005.

Certain matters discussed within this press release may constitute forward-looking statements within the meaning of the federal securities law. 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, industry trends, merchandise and fashion trends, competition, changes in general economic conditions and consumer spending patterns, vendor procurement issues and the ability to obtain financing, 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].